Perhaps AG Kamala Harris should step in to investigate this matter ASAP!
CBS-
A 93-year-old woman is facing foreclosure after taking a second mortgage out on her West Hollywood home.
Hilda Vinalas took out a loan after facing financial troubles after her husband, Henry, died.
The couple purchased the home 60 years ago for $30,000 and paid it off in full.
Vinalas told KCAL9’s Amy Johnson she thought the loan, purchased from Lehman Brothers, was a fixed loan for $140,000.
“They made me sign many papers, and I could’ve signed my death sentence because I didn’t know what I was signing,” Vinalas said.
The loan turned out to be an adjustable rate mortgage for $750,000.
[CBS]
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Crime is having a elderly person on some limited income who with a $750,000 loan at a 2% rate would have just a P&I payment of $2,772 and the loan would adjust after that.
Now somebody had to approve this loan, but you can see it a crime waiting to happen because what the likely this lady was going to live to 93? You must find the loan officer and the underwriter who approved the loan, and even as you cannot discriminate because of ages what was the chance of her paying back 3/4 of million as she almost 100yrs old.
There no was this much cash was being paid out that should not have been some type of override to give her this much cash which a cannot see happening under the property was a $1.5 million home at the time.
There not way a 80 something is tricking the banks so why is it now were even talking of taking her home without the Atty Gen Office involved?
What happens if the Treasury Department “underwrote” this loan?
If the Treasury Dept underwrote this loan that would be a very large problem, tact on to the already existing yet to be heard actions by the Federal Government.
I remember when I had a 83yr old man that wanted me to refinance his loan that had been done by Wells Fargo Financial, were they placed the guy into some BS 40yrs Adjustable Rate Mortgage (ARM) when he qualified for a FHA loan all day long but the old guy needed someone to sit down and simply paid out some of the credit card balances that he had.
The guy just wanted to continue to charge up his cards, as he had more than enough to bring the balances down so that the higher interest of these card were not hurting him plus give him a safe fixed lower interest instead of a higher interest ARM.
The man was charged 5 points ($5,500) and $5,000 plus a pre-payment penalty on a $110,000 loan. Now as I ran the man’s situation he could received at that time in 2007 a 6.25% 30yrs fix FHA instead of of the 8% 40yr ARM. As I send the man to the NEBR State Atty Gen would when I left the banking industry in 2008 he was still working with them to try and resolve his situation.
However as we seen last year the Federal Reserve Board fined Wells Fargo for this exact thing of steering there customers into these bad loan.
I once worked for Wells Fargo Bank who was steering servicemember into other loans when the VA loan was clearly better for them. Just as the elderly man who if he was treated right today as he had a over 750 FICO score would have been able to do a streamline refi all the way down to a 3% 30yr loan, and our Troops would have been able to do the same but they are trapped in those subprime of 80/20 mortgages that are underwater were that would have not happen with a VA or FHA loan because there is no new appraisal as we are only refinancing the balance.
It a crime what happen to are men and women in uniform at the hands of banks wanting to make more money.