Video provided by the U.S. House of Representatives. Predatory Lending – Committee on Oversight and Government Reform – Tape Deck 12 – 2007-03-21 – Subcommittee on Domestic Policy.
This was be the first in a series of hearings Subcommittee Chairman Dennis John Kucinich plans to hold looking at various issues afflicting urban America.
The Domestic Policy Subcommittee held a hearing on predatory mortgages, payday loans, and foreclosures that plague inner-city America. The riskiest segment of the U.S. mortgage market, which serves borrowers with poor credit histories at high interest rates, has seen rising default rates in recent months amid falling prices and slower sales in the housing market.
Key Economic Facts:
On Tuesday, 13 March 2007, the Dow Jones Industrial Average dropped 242.66 points, its second largest single day decline in four years, because of the subprime mortgage market. The Mortgage Bankers Association reported new foreclosures surged to an all-time high in the last quarter of 2006.
On August 31, 2008, Citigroup completed its acquisition of its wholesale origination-lending unit, Argent Mortgage, and its loan-servicing unit, AMC Mortgage Services, and shut down its retail-lending unit, Ameriquest Mortgage.
Former employees from Ameriquest, which was United States’s leading wholesale lender, described a system in which they were pushed to falsify documents on bad mortgages and then sell them to Wall Street banks eager to make fast profits. There is growing evidence that such mortgage fraud may be at the heart of the Financial crisis of 2007–2010.
Argent Mortgage is now named Citi Bank Residential Lending. Argent Mortgage ceased its operations in 2007 because of numerous violations of law and fraudulent business practices that resulted in a huge number of complaints and several law suits. At the present time Citi Bank Residential Lending, Inc. is a non-conforming wholesale lender. The company now provides a diverse range of lending products, services and expertise.
Uploaded by HouseResourceOrg on Feb 6, 2011
Google The Web:
Independant Mortgage Brokers
Argent Mortgage, Cleveland
Duration : 0:4:59