Thursday, October 6, 2011

Federal Suit Accuses Bankster Of Targeting Latino, Black, Poor Immigrants With Predatory Loans That Ended In Default; Class Action Status Sought

In Newark, New Jersey, The Record reports:

  • A lawsuit filed by a Ridgefield Park couple and three other New Jersey home buyers alleges Cresskill-based 1st 2nd Mortgage Co. of New Jersey targeted Latino and African borrowers and deceived them into taking out so-called predatory loans that eventually defaulted.

  • The suit, which seeks class-action status, alleges the loans failed because the borrowers earned too little to make the payments, which inflated dramatically after several years as adjustable mortgage rates kicked in.

  • The company targeted poor immigrants with limited education and little or no English, who knew little or nothing about mortgages, the suit, filed Monday in U.S. District Court in Newark, alleges.

For more, see Lenders accuse Cresskill mortgage co. of fraud, predatory lending.

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