Call on Ben Bernanke, Chair of the Federal Reserve, to crack down on unscrupulous mortgage brokers
Colorado is #2 in the entire country for the number of home foreclosure filings per household of any state. (Denver Post, 6/1/2007) Thousands of Colorado families like the Scotts have been preyed upon by unscrupulous mortgage brokers who make predatory loans sound like salvation. Instead, predatory loans strip families of their equity, and in many cases even their homes.
Statewide, Colorado was hit by 9,254 foreclosure filings in the first quarter of 2007, putting the state on track to top last year's record foreclosures by about 25 percent. Last year, 28,453 foreclosures were filed statewide. This year, that number could rise to more than 36,000. (RMN, May 23, 2007)
Hard-working families are being put into loans that they can't pay back or sold into mortgages that have hidden adjustable rates making their payments go up. Prepayment penalties keep these homeowners trapped in their loans or strip their equity in order to let them out.
The Home Ownership and Equity Protection Act (HOEPA) instructs the Federal Reserve Board to protect consumers from predatory lending. (15 U.S.C. Sec. 1639(L)(2))
We call on Federal Reserve Chair Bernanke to crack down on abusive home lending practices.
