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Predatory-lending litigation looms.

Publication: Trial
Publication Date: 01-MAY-08
Format: Online
Delivery: Immediate Online Access

Article Excerpt
Amid the subprime mortgage crisis, many people across the country--with both good and bad credit--have found themselves stuck with loans that are not what they anticipated. Mortgage lenders and related institutions are under intensifying scrutiny for a wide range of illegal conduct, including misrepresenting loan terms, adding bogus fees, inflating appraisals, committing securities fraud, and discriminating against borrowers based on their race and gender. Lawsuits allege violations of the Truth in Lending Act (TILA), the Fair HousingAct, the RICO statute, and state consumer protection laws, to name a few.

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Last year, 278 subprime-mortgage-related cases were filed in federal court--with the number in the second half of the year nearly twice the number in the first half--and that figure is likely to continue...

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