There are lending practices that are abusive and predatory in nature. How can you identify these? Below are questions that could help you determine fraud in lending. If you answered “yes” to any of the questions, contact the appropriate agency/agencies.
The information below will help you better determine if you have been a victim of mortgage fraud or predatory lending.
If a bank modifies a loan, the modification may result in injury to certain classes of investors. Such financially injured investors may then sue the banks for improper administration of the investment resulting in billions of dollars of liability. Foreclosure, the measure generally accepted and prescribed in the investment documents to cure default of securitized loans, averts risk and liability for lenders.
The securitized mortgages are subject to rules created in the investment documents and rules issued by the Internal Revenue Service to secure favorable tax treatment for securitized loans. These rules constrain the ability of the banks to modify mortgages. Such rules may include the following: