Attorney General warning Lenders to work with Borrowers to prevent Foreclosures

Posted on August 5, 2009
Filed Under Foreclosure Homes | 1 Comment

Richard Cordray, the Attorney General of Ohio has sent out a stern warning to mortgage lenders to work with the borrowers to prevent foreclosures. If not they will be hauled up to court. Cordray said he would start suing mortgage lenders who transgressed laws relating to consumer protection.

Cordray said, “Many lenders are pledging to work with customers and failing to do so. They’re not returning calls, paperwork gets lost, payments misappropriated.” Cordray declined to name his targets but he said that the activities of 10 or 12 of the biggest Ohio lenders are being looked into. He added, “The goal of the lawsuits is compliance with their promises. We want there to be accessible personnel, a reasonable process, clear steps. What we want is a change in behavior.”

The report came in as Cordray and many other state personnel including judges and leaders of non-profit entities conferred  in Columbus – it being part of programme dubbed Save Our Homes Summit chalked out to focus on the solving the foreclosure scenario in Ohio.

At this meeting nearly 20 worried home owners arrived hoping to meet the representatives of JPMorgan Chase to try and save their units. One of the attendees was Ambrosia Lugo who had answered to a letter dispatched by Chase. The letter read, “You have an opportunity to meet in person with specialists from Chase, your lender, at a local event. We’ll walk you through the options available and work out the best solution to your current needs.” Other borrowers too had received similar mail. But none from Chase was present when the meeting kicked off at 10 am in the auditorium of Ohio Department of Transportation. Lugo was angry and frustrated as he had been trying to reach a workout with them for many months. Chase representatives arrived at nearly 1 pm after the organizers of the meeting contacted them.

Many of the speakers opined that the big lenders were not playing their proper parts in helping the borrowers and the nation to prevent foreclosure.

The housing counselors representing Empowering & Strengthening Ohio’s People – a non-profit group of Cleveland, put up tables and chairs outside the hall and began helping about 20 home owners. This group is among one of the many that has got the approval from HUD to help the borrowers contact their leaders and effect workouts.

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