February 23, 200619 yr Predatory lending targeted Senate nearly united to rein in mortgage industry Thursday, February 23, 2006 Jim Siegel THE COLUMBUS DISPATCH Boosted by unusual bipartisan support for a regulatory bill of this magnitude, the Ohio Senate approved a predatory-lending measure yesterday designed to give borrowers more protection against shady mortgage deals. "The days of the Wild West in mortgage lending are over," said Bill Faith, executive director of the Coalition on Homelessness and Housing in Ohio. "For the first time in the history of this issue, we finally have tools for homeowners to go after predatory lenders." More at http://dispatch.com/news-story.php?story=dispatch/2006/02/23/20060223-B1-01.html
February 25, 200619 yr From the AP, 2/24/06: Ohio borrowers get a hand State Senate bill to clamp down on predatory lending now goes to House By Carrie Spencer Ghose Associated Press COLUMBUS - Lawmakers have rebuffed efforts to protect mortgage brokers and lenders from lawsuits and instead inserted more borrower-friendly provisions in a bill trying to lower Ohio's foreclosure rate. The Senate has sent the bill clamping down on predatory lending practices to the House, where Speaker Jon Husted called it a good foundation. The Dayton-area Republican said he hadn't studied all the specifics but wanted to ensure the bill stays focused on stopping fraudulent practices without hampering business. More at http://www.ohio.com/mld/ohio/business/13950129.htm?source=rss&channel=ohio_business
February 25, 200619 yr Despite my ringing endorsement of sub-prime lending generally (I think it's the most empowering development for the working poor that I can think of - see this post above), I think this sounds like a good bill. Yes, it will raise costs across the industry, but that ain't unprecedented - every product we buy has lawsuit risk factored into the price. But this provides a huge threat to the unscrupulous, and that's exactly who needs to be threatened. I'd imagine Ohio has been a magnet to those criminal types for a while, and this could shut that right off (assuming it passes the House). And a background check, looking for folks floating from state to state hunting prey - yeah, let's find out who they are before we license them. I'm surprised that isn't already part of the process. And creating a legal fiduciary duty - that sounds like a great idea. It's not like these folks aren't selling themselves as "looking out of you" or "on your side" - that's always the sales shpiel anyway - I don't see anything wrong with making them back that up. One thing in noozer's article from 2/22 that just bugged the hell out of me: The letter irritated Sen. Joy Padgett, a Coshocton Republican and sponsor of the bill. "Being threatened in the last paragraph does not sit well with me," she said, referring to the chamber’s mention of its legislative scorecard. "When you threaten me, I’m likely to dig my heels in even more, particularly if you haven’t come and talked with me." Then I'm sorry, Joy, your ass needs to be voted out of the goddamn Senate. Are you honestly saying you'd let your own hurt feelings impact your votes as a State Senator? Coshocton didn't elect you so you could feel good about yourself - Ohio's constitution didn't create your office for your benefit, you idiot, they created it and you were elected so you could enact wise policy. Now suck it up and choose what's best for Coshocton and Ohio, not what makes you feel better by sticking it to some group you're upset with. A**hole.
March 10, 200619 yr This seems to be a step in the right direction: Fear of foreclosure? Call Cuyahoga's new one-stop help line Friday, March 10, 2006 Thomas Ott Plain Dealer Reporter Cuyahoga County has an urgent message for homeowners who face foreclosure: Call 2-1-1. The phone line is part of a new foreclosure-prevention campaign called Don't Borrow Trouble, Cuyahoga County. Callers will be referred to nine agencies and law firms that will help them work out repayment plans or challenge illegal lending. More at cleveland.com http://www.cleveland.com
March 10, 200619 yr That sounds great to me. Educating consumers and expanding the sub-prime market are the keys to driving price-gougers and the unscrupulous out of the business, while continuing to give higher-risk borrowers with opportunities they couldn't have dreamed of in years past...the hotline is a great idea, especially if it becomes widely known about...
March 10, 200619 yr The key to making this plan work is going to be to market it heavily. It's unclear what their approach will be, but I'd like to see billboards and bus ads. The billboards could help counter those terrible "WE BUY UGLY HOUSES!" ads I see all over the West Side.
March 12, 200619 yr Report on lending laws spurs U.S. proposal By Frank Norton Raleigh News & Observer Published March 5, 2006 RALEIGH, N.C. -- A bill gaining support in the U.S. House of Representatives could wipe out state laws that save homeowners an estimated $9.1 billion a year, according to a study by the Center for Responsible Lending in Durham. Center officials tout their study as the most comprehensive and the first to provide an arsenal of data showing that state laws barring predatory loan practices not only work, but save consumers billions of dollars a year. Researchers gathered and analyzed data on 5 million home loans made from 1998 to 2000 in states with substantive protections against predatory loans. Their analyses compared the experience of those borrowers with others in states with minimal or no protections. ... More at: http://www.chicagotribune.com/classified/realestate/realestate/chi-0603050484mar05,0,4047199.story?coll=chi-classifiedrealestate-hed
March 12, 200619 yr - Anti-predatory lending laws passed in 28 states since 1999 have not decreased access to credit for low-income or credit-challenged borrowers in the so-called subprime market As long as that's actually true, I'm not going to be worked up about methods - the big part of this subject - the overarching, indispensible, hugely vitally important part of this subject - is low income home ownership. It transforms a family and transforms a neighborhood, and anything to encourage it is good. I suspect the free market does a better job of that, so a looser national code? I'm not all that worried about it. Stricter state-by-state codes? If low-income lending is truly about equal there, then I'm not all that worried about it. I guess in theory this seems like it should be a state regulated industry, so I guess I'd rather see the bill fail, but I certainly don't feel strongly about it either way...
March 12, 200619 yr PREDATORY-LENDING HEARINGS Mortgage bill heads into House with momentum Sunday, March 12, 2006 Jim Siegel THE COLUMBUS DISPATCH Whether Ohioans are to gain more protection against fraud when they refinance a mortgage or buy a house depends largely on what the Ohio House does in the next three months. Supporters of tougher mortgage-industry regulations scored a major victory last month when the Senate approved what they call the strongest anti-predatorylending bill to ever pass a chamber of the Ohio legislature. More at http://dispatch.com/news-story.php?story=dispatch/2006/03/12/20060312-A1-04.html
March 12, 200619 yr Ohio bill may be for naught Congress wades into mortgage mess Sunday, March 12, 2006 Jonathan Riskind THE COLUMBUS DISPATCH WASHINGTON — When the state Senate overwhelmingly approved a predatory-lending bill last month, affordable-housing advocate Bill Faith proclaimed that "the days of the Wild West mortgage lending are over" in Ohio. But even if the House also passes the measure designed to offer consumer safeguards against shady mortgage deals, the federal government might preempt much of the Statehouse’s work. More at http://dispatch.com/news-story.php?story=dispatch/2006/03/12/20060312-A6-01.html
March 16, 200619 yr From the 3/15/06 PD: Housing judge hammers the banks Case illustrates ire over cases of neglect Wednesday, March 15, 2006 Thomas Ott Plain Dealer Reporter Cleveland Housing Court Judge Raymond Pianka is so frustrated with decaying houses that are abandoned because of foreclosure, he ordered the arrest of somebody -- anybody -- at a bank that failed to send a representative to a hearing. No arrests were made. Pianka, who issued the warrant last month, relented after KeyBank promised to have a lawyer in court Tuesday. More at cleveland.com http://www.cleveland.com/news/plaindealer/index.ssf?/base/cuyahoga/1142415069292330.xml&coll=2
March 17, 200619 yr House panel questions true effect of predatory-lending bill Friday, March 17, 2006 Jim Siegel THE COLUMBUS DISPATCH Sen. Joy Padgett told a House committee yesterday that her bill to crack down on fraudulent mortgage brokers and lenders finally provides home buyers with the protection they deserve. But Rep. William P. Coley II, a Republican from West Chester, said the bill might be renamed the "Homeowner Reduction Act." More at http://www.dispatch.com/news-story.php?story=dispatch/2006/03/17/20060317-C6-01.html
March 17, 200619 yr Great to see hyperbole and extreme rhetoric is taking hold..."the Homeowner Reduction Act"; "the potential price tag 'would be minimal to the amount of loss that is suffered by people who have been foreclosed upon and have lost their homes.'" Jesus, stop people. No, requiring mortgage brokers to have a fiduciary responsibility to their clients will not make them all decide to forego doing business in the state - that's completely ridiculous. And no, the "amount of loss that is suffered" by people losing homes they never would have been able to buy in the first place is a SMALL price to pay for the benefits to the 90%+ who are able to use subprime lending as a stepping stone into more financial security. And who is this guy? "'Foreclosures are probably caused just as much by creditcard debt as predatory lending,' Webster said." Wanna elaborate? Because I'd hope you know that credit card debt is unsecured debt, meaning the ONLY way it can lead to you losing your home would be if you don't make your payments, it gets charged off, goes through some collection agencies, maybe resold to a factoring company or two, and someone along the line decides to sue, gets a judgement against you, files a lien on your home, and then forces the home to be sold at auction. It may happen - but most folks don't bother suing these accounts, and most of those who do sue don't force it to be sold at an auction. And during the course of the couple of years it takes to work its way through this process, you'll have tons of opportunities to a) sell your house on your own if you wish and pay off your debt, b) file bankruptcy, c) set up payment arrangements, or d) find a way to wiggle out of the credit card debt. Moronic state representatives, throwing out mindless assertions without a lick of thought or evidence to back themselves up. Well, maybe the story's editor cut the paragraph of supporting evidence and logical argument from the story...but forgive me if I'm skeptical...
March 20, 200619 yr From the 3/18/06 PD: Judges target foreclosure 'culture of secrecy' Saturday, March 18, 2006 Mark Gillispie Plain Dealer Reporter Cuyahoga County Common Pleas Judge Nancy Russo knew the court had a problem with open records when a court official several years ago refused her access to information about foreclosure cases that had once been assigned to her. "He told me it was none of my business," Russo said in an interview this week. "So it just doesn't happen to the public with open records." More at cleveland.com http://www.cleveland.com/news/plaindealer/index.ssf?/base/news/1142675024192320.xml&coll=2
March 22, 200619 yr Ohio foreclosures rose into February, study says Business First of Columbus - 10:32 AM EST Wednesday Ohio's foreclosure picture turned dimmer in February as the number of properties entering some stage of foreclosure rose 19 percent from January, a monitor of foreclosures reported Wednesday. RealtyTrac, which reports monthly on the nation's foreclosure scene, said 9,873 properties in the state entered foreclosure in February -- one new foreclosure for every 484 households. That was double the national rate for the month, when one new foreclosure was recorded for every 986 households, RealtyTrac reported. The Irvine, Calif.-based online marketplace said 117,259 properties nationwide entered some stage of foreclosure in February, up 13 percent from the prior month. ... More at: http://columbus.bizjournals.com/columbus/stories/2006/03/20/daily19.html
March 25, 200619 yr From the 3/24/06 Enquirer: Bill would give power to go after shady lenders More than 3% of Ohio homes in foreclosure by '05's end BY JON CRAIG | ENQUIRER COLUMBUS BUREAU COLUMBUS - Clyde H. Walthen Sr., a 76-year-old veteran of World War II, was the perfect prey. By his own admission, the homeowner from Hamilton lacks financial sophistication. Taken in by what he described as an unscrupulous lender, he told a state House committee Thursday, he and his wife nearly lost their house. More at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060324/BIZ01/603240366/1076/rss01
March 26, 200619 yr If it weren't so maddening, the testimony of this mortgage broker would almost be laughable. Felon’s boss: Let us police selves Mortgage-business advocate fights regulatory bill Sunday, March 26, 2006 Geoff Dutton THE COLUMBUS DISPATCH As president of the Ohio Association of Mortgage Brokers, Michael L. Matalka says he wants every criminal and unscrupulous character chased out of the business. Every one, it seems, except the convicted mortgage scammer who helps run his offices. More at http://dispatch.com/news-story.php?story=dispatch/2006/03/26/20060326-A1-01.htm ll Loan officer is an ex-convict Regulators allowed him to keep license despite his record Sunday, March 26, 2006 Geoff Dutton THE COLUMBUS DISPATCH Thomas F. Sands was convicted of 16 felonies in 1994 and lost his law license for bilking clients out of $800,000. He has repeatedly filed for bankruptcy, and he has a long history of not paying his mortgages. After his release from prison, the Northeast Side man worked for a couple of years as a car salesman before finding a more rewarding career in 2001 as a loan officer for a mortgage broker. More at http://dispatch.com/news-story.php?story=dispatch/2006/03/26/20060326-A6-00.html
March 28, 200619 yr House negotiating predatory-lending bill Ohio lawmakers debate oversight of mortgage industry Tuesday, March 28, 2006 Jim Siegel THE COLUMBUS DISPATCH Ohio House leaders delayed changes to a Senate-passed predatory lending bill yesterday as they struggled to create a measure to curb abuses that does not damage Ohio’s home-lending industry. All sides were trying to work out a major disagreement over how the mortgage industry should be subjected to the Consumer Sales Practices Act, a 34-year-old law designed to protect consumers from deceptive business practices. More at http://www.dispatch.com/news-story.php?story=dispatch/2006/03/28/20060328-C3-03.html
March 29, 200619 yr State lawmakers agree on predatory-lending bill Consumer advocates back legislation expected to pass in the House today Wednesday, March 29, 2006 Jim Siegel THE COLUMBUS DISPATCH After adding provisions that deal with high-cost loans and create a new "Borrowers Bill of Rights," House Republicans and Democrats and consumer advocates said the latest version of Ohio’s predatory-lending bill is strong. "It’s a very good framework," said a weary Bill Faith, executive director of the Ohio Coalition on Homelessness and Housing in Ohio, a prime supporter of increased mortgage-industry regulation who has engaged in marathon talks with lawmakers for several days. More at http://www.dispatch.com/news-story.php?story=dispatch/2006/03/29/20060329-B3-01.html
March 31, 200619 yr Loophole lets loan officers skip exam They just go from temporary license to temporary license Thursday, March 30, 2006 Geoff Dutton THE COLUMBUS DISPATCH (Related chart at: http://www.dispatch.com/news-story.php?story=dispatch/2006/03/30/20060330-B1-04.html Steven J. Henderson has arranged and refinanced mortgages for more than three years without ever passing a state licensing exam. Thanks to a loophole in the law, he doesn’t have to. Nor do hundreds of other loan officers who work legally in Ohio without ever passing the test, The Dispatch found. In 2002, Ohio began licensing loan officers, requiring them to pass a written exam to ensure basic competency, knowledge of the law and awareness of ethical standards. The state also started running criminal background checks on them. But loan officers have discovered a way to avoid the 75-question, multiple-choice exam. More at http://dispatch.com/news-story.php?story=dispatch/2006/03/30/20060330-B1-03.html
March 31, 200619 yr House passes much-altered version of mortgage-reform bill Thursday, March 30, 2006 Jim Siegel THE COLUMBUS DISPATCH The debate over how to best crack down on predatory lending in Ohio continues. The House yesterday made sweeping changes to a complicated mortgage industry oversight bill and passed it 89-5, but the Senate isn’t ready to sign off yet. That pleased consumer advocates. "Well-intentioned people on both sides of the aisle and in both chambers are serious about ending abusive lending behaviors," said Bill Faith, executive director of the Coalition on Homelessness and Housing in Ohio. ... More at: http://dispatch.com/news-story.php?story=dispatch/2006/03/30/20060330-A4-03.html
April 2, 200619 yr I'm not sure Bier's property tax-sharing proposal would go very far toward stemming abandonment. As long as new housing continues to go up at the rate it is now, other property will necessarily be abandoned, as he points out. Until this region starts growing again, we shouldn't be building anywhere new. It's as simple as that. He seems to be gearing up to making this obvious point, then wimps out. Empty buildings drain region's vitality Sunday, April 02, 2006 Thomas Bier We have many more build ings in Greater Cleveland than users to occupy them. That means that some buildings must be abandoned. Call it a real estate "surplus." More at cleveland.com http://www.cleveland.com
April 2, 200619 yr I think this issue is a big deal for the region. With Cuyahoga County being almost entirely built out, stagnent population growth, and people being lured to outlying counties with new construction the region does need a comprehensive housing strategy. It could start with Cuyahoga County. I'd like to see something like the Port-Authority created but with housing in mind. Something like the Cuyahoga County Housing-Authority could deal with redevelop throughout the county. As soon as homes go up for sale in Cuyahoga, the Housing-Authority could offer financing for aquisition and redevelopment of homes one at a time. Something like the Heritage Lane neighborhood in University Circle is a good example of what could be done throughout the county if a semi-private body was created with start up funds from the state and federal governement. Slowly but surely, entire streets could be transformed that are on par with new developments in outlying communities. This would help contain the population within Cuyahoga County and stop sprawl outward. Cleveland could become higher density with new housing, but entire streets in Cleveland, East Cleveland, Cleveland Heights, and Lakewood could also become a little lower density by transforming their duplex units into single family homes to remain competitive with outlaying communties, boost property values, and attract a greater middle-income base to their cities.
April 4, 200619 yr Predatory-lending bill nibbled away, advocate says Plan awaits action by Senate-House panel Tuesday, April 04, 2006 Jill Riepenhoff and Geoff Dutton THE COLUMBUS DISPATCH Rather than protect consumers, the latest attempt by state lawmakers to crack down on predatory lending will make Ohioans easier targets for mortgage abuse, says a consumer advocate who has been pushing for stronger state laws for six years. "It actually erodes protections we have today for homeowners," Bill Faith said at a news conference yesterday. As executive director of the Coalition on Homelessness and Housing in Ohio, Faith is the leading advocate lobbying lawmakers to tighten regulation of the mortgage industry.. ... More at: http://dispatch.com/news-story.php?story=dispatch/2006/04/04/20060404-D4-01.html
April 7, 200619 yr Foreclosure rate increased in 2005 Predatory lending, job losses cited as top two reasons for 8 percent rise in Ohio Friday, April 07, 2006 Jim Siegel THE COLUMBUS DISPATCH One of every 71 Ohio households filed for foreclosure in 2005, another record year for a problem that has ravaged all areas of the Buckeye State and grabbed the attention of state lawmakers. Nearly 64,000 foreclosures were filed last year, quadruple the number from a decade ago, according to a new report by the Cleveland nonprofit group Policy Matters Ohio. As they did two years ago, county sheriffs said predatory lending was the number one reason for the foreclosures, followed by job losses. ... More at: http://dispatch.com/news-story.php?story=dispatch/2006/04/07/20060407-A1-01.html
April 18, 200619 yr Task force to hold foreclosure-prevention forums Business First of Columbus - 3:21 PM EDT Tuesday A group of 70 Columbus-area businesses have set up a task force to try to reduce the number of foreclosures in the city. The group will host two neighborhood forums to provide information on foreclosure issues. The meetings will be held in the southeast and southwest parts of the county, where foreclosure numbers are highest: May 9 at 6:30 p.m. at the South Side Neighborhood Pride Center at 310 E. Innis Ave. May 10 at 6:30 p.m. at Central Crossing High School at 4500 Big Run South Road in Grove City. ... More at: http://columbus.bizjournals.com/columbus/stories/2006/04/17/daily12.html
April 29, 200619 yr HUD hard on Dominion Audit finds many problems with mortgages Saturday, April 29, 2006 Geoff Dutton THE COLUMBUS DISPATCH A new government examination of Dominion Homes cites dozens of cases in which the company or some of its lending partners skirted standards to help customers qualify for federally insured mortgages. The audit issued this week by the U.S. Department of Housing and Urban Development gives Dominion 60 days to respond. HUD also will seek explanations from three lenders that approved questionable mortgages. HUD said in the audit that the loans expose the federal program to "an unacceptable level of risk." ... More at: http://dispatch.com/news-story.php?story=dispatch/2006/04/29/20060429-A1-00.html
May 6, 200619 yr IRS: Charity lending is scam Down-payment plans called misleading Saturday, May 06, 2006 Geoff Dutton THE COLUMBUS DISPATCH Calling them scams, the Internal Revenue Service plans to revoke the charitable status of down-payment assistance programs that have fueled the business of Dominion Homes and other builders. "So-called charities that manipulate the system do more than mislead honest homebuyers and ultimately jack up the cost of the home," IRS Commissioner Mark W. Everson said in a statement. "They also damage the image of honest, legitimate charities." Federal law prohibits home builders from helping customers directly with down payments. For years, however, builders have partnered with charities to funnel money to buyers. The IRS is examining 185 such charities, which have helped hundreds of thousands of people buy homes with government-backed mortgages. ... More at: http://dispatch.com/news-story.php?story=dispatch/2006/05/06/20060506-A1-01.html
May 8, 200619 yr From the 5/7/06 Dayton Daily News: Quick Guide Mortgage Law Predatory lending bill in the works By Kristin McAllister Staff Writer Ohio lawmakers this month are slated to reconvene to hash out a new law that would end predatory lending. The Ohio Senate in February approved Sub. Senate Bill 185 — what American Banker called "the country's toughest mortgage law." The Ohio House in March informally passed the bill, but removed many of its new reforms and watered down the "fiduciary duty" placed on mortgage lenders and brokers toward their customers. ... More at: http://www.daytondailynews.com/business/content/business/daily/0507foreclosure.html
May 8, 200619 yr If it the House version stays intact, the law will be worthless and these financial "weasels" will continue to sink their teeth into the wallets of people who can least afford the financial hit. My wife works in an aerm of the real estate industry (a closing officer) and she see these creeps (she calls them bottom feeders) much too often at the closing table and the damage they do to well-meaning folks who just should not be allowed to purchase a home. She has even called a halt to closings when it's obvious that there are some shady deals being made that could hurt the buyers.
May 8, 200619 yr I think that these people are complete A-holes for taking advantage of these people, but at the same time, I have to put some of the blame on the home owners. People have to start thinking on their own sometimes. Simple math can tell you how much one can afford for a house. People tend to think that they can count on overtime or other unstable income to make up for what they can and cannot afford. Between utilities, car payments, insurance, food/clothing expenditures, entertainment money, and what I call "emergency" money...add it up...compare that to your assured monthly income...and figure out what you can afford. It is nice to think on your own sometimes rather than to trust some stranger telling you what you can of cannot afford. I am not putting all the blame on the homeowners, but people, please start thinking about it when people are trying to sell you a bill of goods!
May 9, 200619 yr From the 5/9/06 Dispatch: Lawmakers back to rework predatory-lending bill Tuesday, May 09, 2006 Jim Siegel THE COLUMBUS DISPATCH Vastly different approaches to cracking down on predatory home-mortgage lenders are to be ironed out by lawmakers returning to the Statehouse today for a whirlwind threeweek session. Senate Bill 185, laden with restrictions against lenders and brokers until critics say it was watered down by the House, is a top priority for legislative leaders, who hope to reconcile the differences before adjourning for a long recess. Advocates for homebuyers said they are optimistic that lawmakers won’t cave in to the powerful mortgage industry when the final version is crafted. ... More at: http://www.dispatch.com/news-story.php?story=dispatch/2006/05/09/20060509-D4-00.html
May 13, 200619 yr Legislators optimistic about chances of predatory-lending bill Saturday, May 13, 2006 Jim Siegel THE COLUMBUS DISPATCH House and Senate Republicans say they’re making progress on a compromise bill against predatory lending. The official joint conference committee that must vote on changes to the bill has not yet been named. But lawmakers and staff members are meeting privately to get some of the heavy lifting out of the way before the committee begins public meetings. Legislative leaders hope to have a final bill passed within two weeks. ... More at: http://dispatch.com/news-story.php?story=dispatch/2006/05/13/20060513-D1-02.html
May 19, 200619 yr From the 5/19/06 Dispatch: Lawmakers look to reconcile predatory-lending bills Committee will try to reach compromise between House, Senate drafts of legislation Friday, May 19, 2006 Jim Siegel THE COLUMBUS DISPATCH House and Senate leaders yesterday named a new joint conference committee to work out a compromise anti-predatory-lending bill next week. The two chambers passed vastly different versions of the bill, and lawmakers have been meeting behind closed doors for two weeks to hammer out differences. "I think people feel very positive about the interactions and they feel the conference committee looks workable," said Sen. Jeff Jacobson, R-Vandalia, who has been involved in the recent discussions. ... More at: http://www.dispatch.com/news-story.php?story=dispatch/2006/05/19/20060519-B5-00.html
May 23, 200619 yr From the 5/21/06 PD: Cuyahoga County trying to end foreclosure backlog Magistrates added, cases put on dockets Sunday, May 21, 2006 Thomas Ott Plain Dealer Reporter Cuyahoga County has a national reputation with lawyers and bankers in the foreclosure industry. It's not a good reputation. The county's court system bottles up foreclosure cases, sometimes for years, making it a national topic when the bankers and lawyers get together to talk shop, said Chad Neel, chief operating officer of two companies that manage properties for lenders, one based in Colorado and one in Solon. More at cleveland.com http://www.cleveland.com/news/plaindealer/index.ssf?/base/cuyahoga/1148200300107070.xml&coll=2
May 23, 200619 yr From the 5/21/06 PD: Looking to pass a home loan bill Legislature aims to crack down on predatory lending Sunday, May 21, 2006 Reginald Fields Plain Dealer Bureau Columbus - Legislators are hoping for a breakthrough this week on Senate Bill 185, a contentiously debated proposal that would bring the mortgage loan industry under Ohio's consumer protection law and require loan officers to more diligently help borrowers look out for pitfalls. The proposal is generally aimed at predatory lenders who tend to offer sub- prime loans - high interest rates or loans that are initially interest-free or low-interest but which are hard to refinance when the introductory-rate term is over. These sub-prime loans are offered to people with poor credit history or even to those who might qualify for better interest rates. The legislation would not directly involve banks, which are federally regulated. ... More at: http://www.cleveland.com/news/plaindealer/index.ssf?/base/news/1148200286107070.xml&coll=2
May 24, 200619 yr From the 5/24/06 Dispatch: House stalls a bit on predatory lending bill General Assembly expected to take action on compromise measure this morning Wednesday, May 24, 2006 Jim Siegel THE COLUMBUS DISPATCH Senators were ready to pass a compromise anti-predatory lending bill early this morning, but they were forced to delay when House members didn’t show up. "It’s like I was giving a party but nobody came," said an annoyed Sen. Joy Padgett, a Coshocton Republican and chairwoman of the conference committee on Senate Bill 185. "The House took it upon themselves to send everybody home." ... More at: http://www.dispatch.com/news-story.php?story=dispatch/2006/05/24/20060524-C6-01.html
May 25, 200619 yr Lending bill sent to Taft Legislature votes to curb mortgage abuses Thursday, May 25, 2006 Jim Siegel THE COLUMBUS DISPATCH An anti-predatory lending bill that Republicans, Democrats and home-buyer advocates praised as one of the strongest consumer-protection measures in the nation won legislative approval yesterday. "For far too long, the bad actors have gotten away with taking advantage of buyers’ hopes and dreams," said Sen. Joy Padgett, a Coshocton Republican who sponsored the bill. "It’s time to put an end to the predatory practices and time for us to do the right thing by Ohio consumers." Gov. Bob Taft is expected to sign the measure, which for the first time would subject much of the mortgage industry to the state Consumer Sales Practices Act, giving borrowers and the attorney general’s office more tools to go after deceptive lenders and brokers. ... More at: http://dispatch.com/news-story.php?story=dispatch/2006/05/25/20060525-A1-03.html Predatory-lending crackdown Thursday, May 25, 2006 The legislature gave final approval yesterday to Senate Bill 185, the Homebuyers’ Protection Act. Some highlights: • Applies the Consumer Sales Practices Act to mortgage brokers, loan officers and nonbank lenders. • Creates a list of unconscionable mortgage-industry acts, such as mortgage flipping — frequent refinancing of a loan to generate fees for the lender — and failure to consider a consumer’s ability to pay. • Requires that mortgage brokers safeguard any money handled for the borrower and make a reasonable effort to secure a deal advantageous to the borrower. • Requires national background checks for all applicants for broker, loan officer and appraiser licenses. • Limits prepayment penalties to 2 percent in the first year and 1 percent in the second year. http://dispatch.com/news-story.php?story=dispatch/2006/05/25/20060525-A1-06.html
May 25, 200619 yr Sounds like a good solution. Apparently folks were able to put hyperbole behind them and hammer out a deal. Loved this quote: "I’m of the mind-set that the market should determine who is in the marketplace, not the government," he said, arguing that current laws provide protection if properly enforced. No, Mr. Blasdell, the market may determine who succeeds in the marketplace - but the government decides who can't be in the marketplace because they're in frickin' prison. That's a perfectly legitimate role for government to play - it plays it in every other industry - and that's a role the market cannot play. And the marketplace functions best if it has rational players possessing full information. You never get that in the real world - at best you get something close to it, and in these cases, the problem is the targeting of the least informed and least financially literate folks. So eliminating a broker's access to the most egregious of abuses seems like a reasonably response to that fact.
May 26, 200619 yr Report: Columbus 11th in 1Q foreclosures Business First of Columbus - 5:09 PM EDT Thursday One in every 148 households in metro Columbus had fallen into foreclosure in the first quarter, a company that tracks housing foreclosures reports. At that rate, Columbus ranked 11th in the nation in the first-quarter rate of foreclosures, trailing Las Vegas at 10th on the list, said RealtyTrac's 2006 U.S. Metropolitan Foreclosure Market Report. The Irvine, Calif.-based RealtyTrac regularly monitors properties working their way through foreclosure. Only one Ohio city, Canton, was ranked in the top 10 for the quarter. ... More at: http://columbus.bizjournals.com/columbus/stories/2006/05/22/daily39.html
May 31, 200619 yr From the 5/30/06 AP: Will lending law help? Some doubt restrictions will aid poor borrowers THE ASSOCIATED PRESS COLUMBUS - Ohio Gov. Bob Taft is expected to sign into law several new restrictions on mortgage lenders and brokers who specialize in high-interest loans to borrowers with low incomes or poor credit. Opponents and backers debate whether the new regulations will cost or save consumers money. The answer will have to wait, since the law won't take effect until Jan. 1. ... More at: http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060530/BIZ01/605300323/1076/rss01
June 4, 200619 yr Petro to go after slippery lenders Attorney general’s office to enforce bill cracking down on deceptive loan practices Sunday, June 04, 2006 Jim Siegel THE COLUMBUS DISPATCH Attorney General Jim Petro wanted the power to protect consumers from predatory lending. Now he must prepare his office to wield that new power. The legislature recently passed a bill to crack down on the deceptive mortgage-lending practices that have helped fuel Ohio’s sky-high foreclosure rate. Once Gov. Bob Taft’s signature makes it official, the focus turns to Petro, even though his final term in office will be ending as the bill takes effect Jan. 1. ... More at: http://dispatch.com/news-story.php?story=dispatch/2006/06/04/20060604-C1-01.html
June 11, 200619 yr Interest deal puts many out in cold Columbus metro area leads country in buy-down loans Sunday, June 11, 2006 Doug Haddix and Jill Riepenhoff THE COLUMBUS DISPATCH A mortgage deal offered by some home builders has helped put thousands of people into new houses. But the incentive also has helped push people out of their homes when the initial interest rate rises, often adding hundreds of dollars to monthly payments. The Columbus metro area leads the nation in the number of home buyers using interest buy-down loans backed by the Federal Housing Administration, a Dispatch analysis found. ... More at: http://dispatch.com/news-story.php?story=dispatch/2006/06/11/20060611-A1-00.html Chart on Builders & Buydowns: http://dispatch.com/news-story.php?story=dispatch/2006/06/11/20060611-A4-04.html
June 16, 200618 yr From the 6/16/06 Akron Beacon Journal: Foreclosure help just a call away 1,550 Ohioans seek advice from new hot line; 23% are from N.E. Ohio By Gloria Irwin Beacon Journal business writer More than 1,500 Ohioans facing foreclosure called a new statewide hot line in its first six weeks of existence, according to the agency sponsoring the new counseling service. Nearly one-fourth -- 23 percent -- of the homeowners were calling from area codes in Northeast Ohio, statistics show. Of the 1,550 callers, 40 percent said they were four months or more behind on payments on their home mortgage. That's beyond the 90-days-late point at which many lenders file foreclosure lawsuits. ... More at: http://www.ohio.com/mld/ohio/business/14832486.htm?source=rss&channel=ohio_business
June 21, 200618 yr From the 6/20/06 Dispatch: Predatory-lending protections to take effect Jan. 1 Taft signs measure at home of victims of deceptive lending Tuesday, June 20, 2006 Jim Siegel THE COLUMBUS DISPATCH Sitting in the backyard of a Franklinton couple described as the faces of predatory-lending victims in Ohio, Gov. Bob Taft yesterday signed into law tough new protections against deceptive mortgage-lending deals. When it goes into effect Jan. 1, Ohio will join most states in placing brokers and nonbank lenders under the Consumer Sales Practices Act, giving borrowers and the attorney general more power to sue deceptive brokers and lenders. Although some worry that an Ohio Supreme Court ruling last week could weaken the law, Democrats, Republicans and consumer advocates praised the measure yesterday as one of the toughest in the nation. ... More at: http://www.dispatch.com/news-story.php?story=dispatch/2006/06/20/20060620-D4-00.html From the 6/20/06 Toledo Blade: Mortgage foreclosures rise in Ohio in quarter The percentage of delinquent mortgage payments declined in Ohio and Michigan as well as nationwide during the first quarter, but foreclosures were on the rise in the Buckeye State, according to a quarterly survey released yesterday. In Ohio, 3.27 percent of nearly 1.4 million mortgages were in foreclosure in the January-March period, the highest rate in the nation and up from 3.22 percent in the last quarter of 2005. But Ohio mortgage payments at least 30 days late dropped in the first quarter to 5.44 percent from 6.67 percent in the last quarter of 2005, according to the Mortgage Bankers Association survey. ... More at: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060620/BUSINESS06/606200354/-1/RSS04
June 27, 200618 yr From the 6/27/06 Dayton Business Journal: Ohio foreclosure rates continues to ease, report says Dayton Business Journal - 9:19 AM EDT Tuesday Ohio remains outside the top 10 states when its comes to the dubious topic of housing foreclosure rates, one market watcher reported Monday. In its monthly report, RealtyTrac said 5,239 properties in Ohio were in some stage of foreclosure in May, putting the state 11th on the list. The real estate online marketplace said there was one property in foreclosure for every 913 households in Ohio, a rise of 7.8 percent from April. The national foreclosure rate rose 2 percent from the prior month, but was up 28 percent from May 2005, RealtyTrac said. ... More at: http://www.bizjournals.com/dayton/stories/2006/06/26/daily5.html?from_rss=1
July 6, 200618 yr Web site shows the extent of foreclosure problem New feature maps location of homes Thursday, July 06, 2006 Thomas Ott Plain Dealer Reporter Mapping Cuyahoga County's foreclosures by ZIP codes produces an image like weather radar, with broad thick blotches signaling a nasty storm. Cleveland's Slavic Village neighborhood, with more than 700 cases, is the center of the storm. But the downpour blankets the entire county, from Glenville to Solon, from Detroit-Shoreway to Olmsted Falls. More at cleveland.com http://www.cleveland.com/news/plaindealer/index.ssf?/base/cuyahoga/1152174675299580.xml&coll=2
July 19, 200618 yr From Business First of Columbus, 7/18/06: Ohio foreclosures continue climb Business First of Columbus - 11:41 AM EDT Tuesday While national foreclosure rates fell in June, Ohio moved up five places to post the 6th-highest foreclosure rate among the states, according to real estate information firm RealtyTrac Inc. In its monthly report, RealtyTrac said Ohio had 5,942 properties entering some stage of foreclosure last month, up 13.4 percent from last month and 48.9 percent from last June. The firm said there was one property in foreclosure for every 805 households in the state. Ohio was 11th on the list in May. ... More at: http://columbus.bizjournals.com/columbus/stories/2006/07/17/daily11.html?surround=lfn
August 24, 200618 yr From the 8/23/06 PD: Cuyahoga to offer cities house renovation loans Shaker Heights to borrow $250,000 Wednesday, August 23, 2006 Thomas Ott Plain Dealer Reporter Cuyahoga County will lend money to cities so they can renovate abandoned and decaying homes that increasingly dot the landscape. The loans are available countywide but are aimed at Cleveland's older suburbs, which have asked for help. More at cleveland.com http://www.cleveland.com/news/plaindealer/index.ssf?/base/cuyahoga/1156322421285430.xml&coll=2
September 12, 200618 yr From the 9/11/06 Enquirer: Petro proposes rules to fight abusive lending STAFF REPORTS Ohio Attorney General Jim Petro proposed rules last week to combat predatory lending and other abusive lending activities by loan officers, mortgage brokers and other lenders. The rules were drafted pursuant to Ohio's Homebuyer's Protection Act that will take effect Jan. 1. The law was passed because of high foreclosures across Ohio. More than three dozen people from Greater Cincinnati have pleaded guilty or been sentenced in the federal government's investigation of "flipping" of low-priced homes. Lenders and homeowners have lost more than $50 million. ... More at: http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060911/BIZ/609110316/1001/BIZ
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