Stopping Unfair African American Foreclosures
LAWSUIT IN THE FEDERAL DISTRICT COURT OF MARYLAND SEEKS TO ERADICATE WRONGFUL FORECLOSURE AND AGGRESSIVE MORTGAGE SERVICING TARGETING THE AFRICAN-AMERICAN COMMUNITY
Attorney William C. Johnson, Jr. exposes fraudulent, deceptive and aggressive foreclosure practices targeted toward the African-American community
Washington, DC (BlackNews.com) - A lawsuit filed in the Federal District Court of Maryland is asking the Court to address the common foreclosure practices that has undermined the American Dream for African-American families in areas heavily populated by minorities. The action is denouncing the practice of "reverse redlining" whereby mortgage servicers have specifically targeted the African-American community in regard to certain services, practices and policies. The implementation of these acts has caused a substantial increase in the number of foreclosures in the African-American community as compared to non-minority communities.
The mortgage servicer is typically an intermediary which engages in the collection of mortgage debt. Rarely originating the loan, the mortgage servicer is often assigned the loan or purchases the loan from the secondary market.
What is most interesting about the lawsuit is its attempt to draw a distinction between predatory lending and predatory mortgage servicing. Recognizing the inability of minorities to obtain conventional financing, the lawsuit notes that aggressive foreclosure practices innately attaches itself to those individuals and households with sub-prime loans. Sub-prime loans, due to its costliness and high interest rates, are inherently harder to maintain by the homeowners and has become quite common in the African-American community. Considering the fact the minority community has been the target of sub-prime loans in years past, it goes without saying they are predisposed to foreclosure when unfair and deceptive trade practices are implemented by the mortgage servicer.
While addressing the predatory lending dilemma garners the attention of the press and legislature, the failure to address predatory mortgage servicing will allow this problem to persist. With the family home often being the largest investment of the vast majority of people, it is time certain protections are in place to prevent mortgage servicers from stealing the African-American dream.
About William C. Johnson, Jr. & Associates, PLLC
William C. Johnson, Jr. & Associates, PLLC is a Civil Rights and Consumer Protection firm practicing in the jurisdictions of Maryland and Washington, D.C. The firm typically provides litigation and transactional advice to businesses and individuals.
CONTACT:
William C. Johnson, Jr., Esq., MBA, LL.M
Phone 202-347-8833 or 202-431-2650
Fax: 301-890-8594
Attorney William C. Johnson, Jr. exposes fraudulent, deceptive and aggressive foreclosure practices targeted toward the African-American community
Washington, DC (BlackNews.com) - A lawsuit filed in the Federal District Court of Maryland is asking the Court to address the common foreclosure practices that has undermined the American Dream for African-American families in areas heavily populated by minorities. The action is denouncing the practice of "reverse redlining" whereby mortgage servicers have specifically targeted the African-American community in regard to certain services, practices and policies. The implementation of these acts has caused a substantial increase in the number of foreclosures in the African-American community as compared to non-minority communities.
The mortgage servicer is typically an intermediary which engages in the collection of mortgage debt. Rarely originating the loan, the mortgage servicer is often assigned the loan or purchases the loan from the secondary market.
What is most interesting about the lawsuit is its attempt to draw a distinction between predatory lending and predatory mortgage servicing. Recognizing the inability of minorities to obtain conventional financing, the lawsuit notes that aggressive foreclosure practices innately attaches itself to those individuals and households with sub-prime loans. Sub-prime loans, due to its costliness and high interest rates, are inherently harder to maintain by the homeowners and has become quite common in the African-American community. Considering the fact the minority community has been the target of sub-prime loans in years past, it goes without saying they are predisposed to foreclosure when unfair and deceptive trade practices are implemented by the mortgage servicer.
While addressing the predatory lending dilemma garners the attention of the press and legislature, the failure to address predatory mortgage servicing will allow this problem to persist. With the family home often being the largest investment of the vast majority of people, it is time certain protections are in place to prevent mortgage servicers from stealing the African-American dream.
About William C. Johnson, Jr. & Associates, PLLC
William C. Johnson, Jr. & Associates, PLLC is a Civil Rights and Consumer Protection firm practicing in the jurisdictions of Maryland and Washington, D.C. The firm typically provides litigation and transactional advice to businesses and individuals.
CONTACT:
William C. Johnson, Jr., Esq., MBA, LL.M
Phone 202-347-8833 or 202-431-2650
Fax: 301-890-8594
posted by Dadpreneur Productions at
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