Foreclosures.com Sees New Jersey Predatory Lending Continuing.Business Editors SACRAMENTO, Calif.--(BUSINESS WIRE)--Dec. 18, 2002 Continuing debate and resulting inaction by the New Jersey State Senate has stalled a strong anti-predatory lending bill, Foreclosures.com, a California distressed property investment advisory firm, reports. The bill was passed last April by a large majority vote in the State Assembly. "Meanwhile," says Foreclosures.com's president Alexis McGee, "predatory sub-prime lenders are having a field day, and New Jersey is experiencing a flood of foreclosures." She said that the New Jersey Society for the Preservation of Continued Home Ownership (SPOCH) is reporting "20,000 new foreclosures each year". Ms. McGee said that the question of "assignee assignee (assign) n. a person to whom property is transferred by sale or gift, particularly real property. (See: assign) ASSIGNEE. One to whom an assignment has been made. 2. liability", a key provision of the legislation, has generated opposition to the bill among financial institutions. "Sub-prime loans are being securitized securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. and sold in bundles in the secondary market," Ms. McGee continued, "and it's not clear who would be responsible for loans in the bundles that contained predatory characteristics." "Common sense," said Ms. McGee, "would indicate that liability for abusive lending practices should reside with the originator of a predatory loan. It's the originator that victimizes the borrower, not the purchaser of the loan." Two major sub-prime lenders, Household Bank and Citicorp recently agreed to damage settlements of $485 million and $215 million respectively in response to lawsuits alleging predatory lending practices. Foreclosures.com has been publishing pre-foreclosure property data and providing advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal and training to foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. investors on its website www.foreclosures.com for more than a decade. They have recently expanded their pre-foreclosure lists coverage from California to include all of New Jersey and the metro areas of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Long Island, Chicago IL, and Phoenix AZ. "Our goal," said Ms. McGee, "has been to help investors locate troubled homeowners and show these owners how to sell their way out of foreclosure instead of losing everything to foreclosure auction. That way, the homeowner gets cash for a new start, and avoids the credit impact of foreclosure." The proposed New Jersey law, says Ms. McGee, provides severe penalties for lending practices that strip equity from unsuspecting homeowners, "but at the moment, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Assemblyman as·sem·bly·man n. A man who is a member of a legislative assembly. assemblyman Noun pl -men a member of a legislative assembly Noun 1. Matt Ahearn Matt Ahearn is an American politician, who served in the New Jersey General Assembly, where he has represented the 38th legislative district from 2002 to 2004. Ahearn represented a district which covers an area between the Passaic and Hudson Rivers in suburban Bergen County. , a sponsor of the bill, the State Senate is bogged down in a 20-20 tie." And the tide of foreclosures in the Garden State continues to rise. |
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