Challenges to homeownership predatory lending and other homeowner fraud
Download
1 / 18

CHALLENGES TO HOMEOWNERSHIP: Predatory Lending and Other Homeowner Fraud - PowerPoint PPT Presentation


  • 361 Views
  • Updated On :

CHALLENGES TO HOMEOWNERSHIP: Predatory Lending and Other Homeowner Fraud. Housing Forum May 20, 2005. Stephen H. Olden Legal Aid Society of Greater Cincinnati 215 E. Ninth Street, Suite 200 Cincinnati, OH 45202 (513) 241-9400 solden@lascinti.org. New Buyers.

Related searches for CHALLENGES TO HOMEOWNERSHIP: Predatory Lending and Other Homeowner Fraud

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'CHALLENGES TO HOMEOWNERSHIP: Predatory Lending and Other Homeowner Fraud' - Leo


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Challenges to homeownership predatory lending and other homeowner fraud l.jpg
CHALLENGES TO HOMEOWNERSHIP:Predatory Lending and Other Homeowner Fraud

Housing Forum

May 20, 2005

Stephen H. Olden

Legal Aid Society of Greater Cincinnati

215 E. Ninth Street, Suite 200

Cincinnati, OH 45202

(513) 241-9400

solden@lascinti.org


New buyers l.jpg
New Buyers

  • Predatory home purchase loans

  • Hidden defects in home

  • Sharp loan servicing practices


Current owners l.jpg
Current Owners

  • Predatory refinance loans

  • Shoddy home repairs/remodeling

  • Misunderstood reverse mortgages


Outcomes for homeowner l.jpg
Outcomes for Homeowner

  • Financial struggles/depleted savings

  • Ruined credit

  • Foreclosure/sheriff sale


Outcomes for neighborhood l.jpg
Outcomes for Neighborhood

  • Foreclosures

  • “Investors”/speculators in neighborhood

  • Declining neighborhood


Fair housing phenomenon l.jpg
Fair Housing Phenomenon

  • Prime lenders and redlining

  • Sub-prime lenders and reverse redlining


Foreclosures filed in hamilton county l.jpg
Foreclosures Filed in Hamilton County


Predatory loans l.jpg
Predatory Loans

  • Sub-prime lender

  • Appraiser

  • Broker

  • Title company

  • Others?


Warning signs l.jpg
Warning Signs

  • High interest rate

  • High closing fees

  • Balloon payment/adjustable payments

  • Falsified loan application

  • No real benefit to borrower

  • Home repair scam

  • Debt consolidations (often unsecured debt)


Targeted victims l.jpg
Targeted Victims

  • Elderly

  • New, young

  • Minorities


Elderly l.jpg
Elderly

  • High equity in homes

  • Trusting, ripe for con artists

  • View crime as physical and with weapons


New young l.jpg
New, Young

  • “American Dream” is appealing

  • Lack financial knowledge


Minorities l.jpg
Minorities

  • Lack of access to credit channels

  • Reverse redlining

  • Discriminatory loan terms


Home purchases home repairs l.jpg
Home Purchases/Home Repairs

  • Property flipping and “ugly houses”

  • Investors

  • Fly-by-night contractors


Sharp loan servicing practices l.jpg
Sharp Loan Servicing Practices

  • Junk fees, charges

  • Unaccounted-for payments

  • “Lapsed” insurance

  • Hasty foreclosures


Misunderstood reverse mortgages l.jpg
Misunderstood Reverse Mortgages

  • Complexities

  • Equity depletion

  • Alternatives not explored


What s being done l.jpg
What’s Being Done?

  • Consumer education/counseling

  • Industry clean-up

  • Law enforcement

  • Legislation

  • Litigation


Fountain pen predators l.jpg
Fountain Pen Predators

Yes, as through this world I’ve wandered

I’ve seen lots of funny men;

Some will rob you with a six-gun,

And some with a fountain pen.

And as through your life you travel,

Yes, as through your life you roam,

You won’t never see an outlaw

Drive a family from their home.

Woody Guthrie

Pretty Boy Floyd (1939)