The state’s Department of Financial Services has issued subpoenas to nine hard money
lenders in an investigation into possible predatory lending practices, according to a Bloomberg report. The department feels that lenders may structure certain types of high-interest loans to include terms designed to drive borrowers into foreclosure.
“While many hard money
lenders may be engaged in legitimate financial activities, certain unscrupulous companies appear to be taking advantage of borrowers in tough financial straits by making loans that are designed to fail,” said Department of Financial Services Superintendent Benjamin Lawsky.
The department has subpoenaed the following lenders:
- Alston Ferris Capital Partners
- IAS Group LLC
- Liberty Lending Group
- Manitoli LLC
- Mercier Realty Inc.
- Meritt Funding Inc.
- PMG Lending Group
- Quick Funding LLC
- Rushmore Capital Partners
None of the subpoenaed lenders has been accused of wrongdoing, Bloomberg reported.
New York’s top financial regulator has opened a probe into several