Thursday, October 05, 2006
HB 4050: More lenders who've pulled out of target zip codes
HB 4050: More lenders who've pulled out of target zip codes
From Scott Cheffer at Title Company of America comes this recent list of lenders and their response to HB 4050.
The list is by no means comprehensive, but it gives you an idea of how few choices homeowners have for loans -- whether they trigger the counseling requirement or not.
1. GreenPoint temporarily suspending lending.
2. DK Lending suspending lending for the interim.
3. Emigrant has closed its doors in the Midwest.
4. New Century has suspended lending.
5. Ohio Saving Bank has temporarily suspended lending in the area.
6. Expanded Mortgage Credit has suspended funding.
7. First Horizon has suspended lending.
8. Argent has established practices on all loans in the area.
9. HSBC has established new lending policies.
10. Maxim Mortgage has temporarily stop lending in the area.
11. MILA has suspended lending
12. Irwin Mortgage has suspended lending
13. Credit Suisse has established new lending policies
14. National City has stopped lending on certain products and established new closing procedures
15. Morgan Stanley is requiring results from Counselor (again this is not possible through the system)
16. Molton, Allen, Williams has suspended lending as of September 1.
17. Capital Financial has temporarily suspended taking any applications.
18. WMC has temporarily suspended taking applications.
19. Aegis Funding has suspended taking loans in Cook County.
20. Webster Bank has suspended lending in the zip codes
21. Flagstar Bank has temporarily discontinued lending in the 10 zip codes.
22. HLB is not going to take locks in the 10 zip codes.
23. Peoples Choice Mortgage has temporarily suspended taking applications.
So, if you live in 60620, 60621, 60623, 60628, 60629, 60632, 60636, 60638, 60643 or 60652, you now have fewer mortgage "stores" at which to shop.
Fewer "stores" means less chance that the best home loan product for your financial goals can actually being "sold" to you. You may have to settle for something imperfect.
From Scott Cheffer at Title Company of America comes this recent list of lenders and their response to HB 4050.
The list is by no means comprehensive, but it gives you an idea of how few choices homeowners have for loans -- whether they trigger the counseling requirement or not.
1. GreenPoint temporarily suspending lending.
2. DK Lending suspending lending for the interim.
3. Emigrant has closed its doors in the Midwest.
4. New Century has suspended lending.
5. Ohio Saving Bank has temporarily suspended lending in the area.
6. Expanded Mortgage Credit has suspended funding.
7. First Horizon has suspended lending.
8. Argent has established practices on all loans in the area.
9. HSBC has established new lending policies.
10. Maxim Mortgage has temporarily stop lending in the area.
11. MILA has suspended lending
12. Irwin Mortgage has suspended lending
13. Credit Suisse has established new lending policies
14. National City has stopped lending on certain products and established new closing procedures
15. Morgan Stanley is requiring results from Counselor (again this is not possible through the system)
16. Molton, Allen, Williams has suspended lending as of September 1.
17. Capital Financial has temporarily suspended taking any applications.
18. WMC has temporarily suspended taking applications.
19. Aegis Funding has suspended taking loans in Cook County.
20. Webster Bank has suspended lending in the zip codes
21. Flagstar Bank has temporarily discontinued lending in the 10 zip codes.
22. HLB is not going to take locks in the 10 zip codes.
23. Peoples Choice Mortgage has temporarily suspended taking applications.
So, if you live in 60620, 60621, 60623, 60628, 60629, 60632, 60636, 60638, 60643 or 60652, you now have fewer mortgage "stores" at which to shop.
Fewer "stores" means less chance that the best home loan product for your financial goals can actually being "sold" to you. You may have to settle for something imperfect.
# posted by royhomes : 7:26 AM
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Blagojevich shelves predatory-loan program
By Rick Pearson and Ray Long
Tribune staff reporters
Published January 20, 2007
SPRINGFIELD -- Gov. Rod Blagojevich ordered the suspension Friday of a controversial program aimed at curbing predatory lending in certain Chicago neighborhoods, contending it had soured the real-estate market since it began five months ago.
"Even though this law was designed to fight predatory loans, it is clear that the program may be negatively affecting the communities it is designed to protect," Blagojevich said in a statement. His office said enforcement of the program has created "uncertainty" for lenders that has resulted in limited loan offerings for consumers.
But a spokesman for the chief proponent of the program known as HB 4050, House Speaker Michael Madigan (D-Chicago), contended Blagojevich's actions were like "putting out the welcome mat for predatory lenders."
At issue is the Illinois Predatory Lending Database Pilot Program, involving areas covered by 10 ZIP codes on the city's West and Southwest Sides. The law requires individuals with low credit scores or who meet other criteria to receive financial advice before a mortgage application could be completed. It also requires the state to track loan transactions within the designated ZIP codes.
Critics contend the measure has resulted in a form of redlining that has dramatically slowed the availability of mortgages and the ability to sell properties in predominantly minority communities. But supporters said the law was beginning to force out predatory lenders who have been responsible for dramatic foreclosure rates in the affected neighborhoods, without hurting legitimate lenders.
The law has been the subject of emotional debate and hearings, most recently in November before the Illinois Department of Financial and Professional Regulation. On Friday, Blagojevich ordered the agency to dump the 10 ZIP codes it selected to be covered by the law, effectively suspending the program.
Blagojevich maintained that a report by the University of Illinois showed housing sales in the area covered by the pilot program had dropped by nearly half compared to the fall of 2005, while similar areas outside the program only saw a 20 percent decline.
"I am stopping the program until we can find a system that effectively fights predatory lending and protects home buyers," Blagojevich said.
The move was certain to add to the high level of friction that exists between the Democratic governor and Madigan, the veteran speaker and state Democratic chairman.
"Obviously this is regrettable because the predatory lenders can have free rein," said Madigan spokesman Steve Brown. "They have been gradually skulking their way out of Chicago and Cook County. ... and this program seemed to be having a good effect."
In November, the Blagojevich administration and agency officials met several times in Chicago and Springfield with state lawmakers from the ZIP codes covered by the program. The legislators issued statements in strong support of the program.
"I'm disturbed and offended that the governor would take unilateral action on the law of the land without consultation of myself and Speaker Madigan," said Sen. Martin Sandoval (D-Chicago), the Senate sponsor of the law. "The speaker and I know what's best for our communities on the Southwest Side of Chicago."
Sandoval said he will request an opinion from Atty. Gen. Lisa Madigan, the speaker's daughter, on Blagojevich's ability to suspend the law. Blagojevich aides said the governor's actions were legal and proper.
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By Rick Pearson and Ray Long
Tribune staff reporters
Published January 20, 2007
SPRINGFIELD -- Gov. Rod Blagojevich ordered the suspension Friday of a controversial program aimed at curbing predatory lending in certain Chicago neighborhoods, contending it had soured the real-estate market since it began five months ago.
"Even though this law was designed to fight predatory loans, it is clear that the program may be negatively affecting the communities it is designed to protect," Blagojevich said in a statement. His office said enforcement of the program has created "uncertainty" for lenders that has resulted in limited loan offerings for consumers.
But a spokesman for the chief proponent of the program known as HB 4050, House Speaker Michael Madigan (D-Chicago), contended Blagojevich's actions were like "putting out the welcome mat for predatory lenders."
At issue is the Illinois Predatory Lending Database Pilot Program, involving areas covered by 10 ZIP codes on the city's West and Southwest Sides. The law requires individuals with low credit scores or who meet other criteria to receive financial advice before a mortgage application could be completed. It also requires the state to track loan transactions within the designated ZIP codes.
Critics contend the measure has resulted in a form of redlining that has dramatically slowed the availability of mortgages and the ability to sell properties in predominantly minority communities. But supporters said the law was beginning to force out predatory lenders who have been responsible for dramatic foreclosure rates in the affected neighborhoods, without hurting legitimate lenders.
The law has been the subject of emotional debate and hearings, most recently in November before the Illinois Department of Financial and Professional Regulation. On Friday, Blagojevich ordered the agency to dump the 10 ZIP codes it selected to be covered by the law, effectively suspending the program.
Blagojevich maintained that a report by the University of Illinois showed housing sales in the area covered by the pilot program had dropped by nearly half compared to the fall of 2005, while similar areas outside the program only saw a 20 percent decline.
"I am stopping the program until we can find a system that effectively fights predatory lending and protects home buyers," Blagojevich said.
The move was certain to add to the high level of friction that exists between the Democratic governor and Madigan, the veteran speaker and state Democratic chairman.
"Obviously this is regrettable because the predatory lenders can have free rein," said Madigan spokesman Steve Brown. "They have been gradually skulking their way out of Chicago and Cook County. ... and this program seemed to be having a good effect."
In November, the Blagojevich administration and agency officials met several times in Chicago and Springfield with state lawmakers from the ZIP codes covered by the program. The legislators issued statements in strong support of the program.
"I'm disturbed and offended that the governor would take unilateral action on the law of the land without consultation of myself and Speaker Madigan," said Sen. Martin Sandoval (D-Chicago), the Senate sponsor of the law. "The speaker and I know what's best for our communities on the Southwest Side of Chicago."
Sandoval said he will request an opinion from Atty. Gen. Lisa Madigan, the speaker's daughter, on Blagojevich's ability to suspend the law. Blagojevich aides said the governor's actions were legal and proper.
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# posted by 
: 1:49 PM
: 1:49 PM<< Home
