Attorney General zones in on mortgage company

by Justin da Rosa13 Oct 2015
New York’s attorney general has made it a priority to clean up the mortgage industry, and his latest bid hones in on a mortgage company owned by a private equity firm.

Eric Schneiderman is investigating Caliber Home Loans following a number of consumer complaints, according to The New York Times.

According to the Times, Schneiderman’s office has received numerous consumer complaints about its loan servicing practices. The company employs more than 1,000 people.

Its growth has been exponential, with its mortgages under management growing from 200,000 at the end of 2013 to 327,465 today.

That growth has been fueled by originations and acquisitions of delinquent loans.

The company has come under fire from industry advocates and lawyers who charge it is too quick to foreclose on delinquent borrowers, according to the Times.

Although the attorney general’s office has confirmed the investigation, it would not reveal the focus.

Schneiderman has been aggressively targeting companies suspected of skirting mortgage laws.

The state’s top prosecutor announced in mid-September that his office had reached a more than $400,000 settlement in a mortgage “rescue” scam that resulted in 14 New York homeowners losing their deeds and equity, according to Newsday.

He also recently took aim at one lender alleged to have redlined mortgages, an illegal tactic that denies mortgages based on the racial makeup of communities.


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