HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » Latest Breaking News (Forum) » Ga. counties sue HSBC ove...
Introducing Discussionist: A new forum by the creators of DU

Mon Dec 24, 2012, 02:01 PM

Ga. counties sue HSBC over bad home loans

Source: Associated Press

Three counties in Georgia have filed a lawsuit claiming that British bank HSBC cost them hundreds of millions of dollars in expenses and damage to their tax bases by aggressively signing minorities to housing loans that were likely to fail.

The Georgia counties' failure or success with the relatively novel strategy could help determine whether other local governments try to hold big banks accountable for losses in tax revenue based on what they claim are discriminatory or predatory lending practices.

.......

Fulton, DeKalb and Cobb counties say in their lawsuit, filed in October, that the housing foreclosure crisis was the "foreseeable and inevitable result" of big banks, such as HSBC and its U.S. subsidiaries, aggressively pushing loans that were destined to fail. The counties say the crisis has caused them tremendous damage.

The lawsuit says predatory lending practices include: targeting vulnerable borrowers for mortgage loans with unfavorable terms; directing credit-worthy borrowers to more costly loans; putting unreasonable terms, excessive fees or pre-payment penalties into mortgage loans; basing loan values on inflated or fraudulent appraisals; and refinancing a loan without benefit to the borrower.

Read more: http://www.usatoday.com/story/money/business/2012/12/24/georgia-counties-hsbc/1789031/

4 replies, 1850 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 4 replies Author Time Post
Reply Ga. counties sue HSBC over bad home loans (Original post)
Redfairen Dec 2012 OP
jody Dec 2012 #1
Hassin Bin Sober Dec 2012 #3
dixiegrrrrl Dec 2012 #2
Sherman A1 Dec 2012 #4

Response to Redfairen (Original post)

Mon Dec 24, 2012, 02:08 PM

1. Were those banks following federal policies that relaxed requirements and encouraged subprime loans?

 

Reply to this post

Back to top Alert abuse Link here Permalink


Response to jody (Reply #1)

Mon Dec 24, 2012, 02:32 PM

3. What a stupid question.

Sure because the Feds encouraged - loan fraud, appraisal fraud, high fees, churning, excessive pre-pays and steering credit-worthy borrowers to sub-prime loans.

JIMMY CARTER DID IT !1!1!1!1!1

targeting vulnerable borrowers for mortgage loans with unfavorable terms; directing credit-worthy borrowers to more costly loans; putting unreasonable terms, excessive fees or pre-payment penalties into mortgage loans; basing loan values on inflated or fraudulent appraisals; and refinancing a loan without benefit to the borrower.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Redfairen (Original post)

Mon Dec 24, 2012, 02:22 PM

2. Good!!!!! May every other county in the country follow suit!

rec

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Redfairen (Original post)

Tue Dec 25, 2012, 08:10 AM

4. K&R

This will be interesting to follow. I wish the best to the counties.

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread