| Sometimes, despite the fact that homeowners have | | | | warn regulators of predatory activity and alert other |
| done nearly everything in their power to avoid losing a | | | | borrowers to problems with mortgage companies. |
| home to foreclosure, the bank simply outspends them | | | | Homeowners also need to know which regulatory |
| and breaks down their resistances. Lenders are | | | | agencies they should contact for particular types of |
| aggressive when defending against claims of | | | | banks. The following list should be referred to as a |
| predatory lending or otherwise taking advantage of | | | | rough guide and will cover most, if not all, of the types |
| borrowers, and courts have typically been willing to rule | | | | of lending institutions the typical borrower will have any |
| against the owners and in favor of banks. But when | | | | kind of mortgage transaction with, as well as which |
| homeowners have run out of options on their own | | | | agency to submit a complaint to, if the need arises. |
| home, the best action may just be to alert others that | | | | National Bank: Office of the Comptroller of the |
| the mortgage company may be running a scam. | | | | Currency |
| Federal and state regulatory agencies rarely go after | | | | Federally Insured Savings and Loan: Office of Thrift |
| the largest banks or mortgage companies, unless there | | | | Supervision |
| is an economy-wide scandal or especially egregious | | | | Federal Savings Bank: Office of Thrift Supervision |
| acts of preying upon consumers. But even then, it is | | | | State-Chartered Savings Institution, Federally Insured: |
| more likely that banks and large lenders will not be | | | | Office of Thrift Supervision |
| targeted directly. The consequences for regulators in | | | | Federal Credit Union: National Credit Union |
| going after these giant corporations are far too great, | | | | Administration |
| as the largest financial institutions in the country bankroll | | | | State-Chartered Credit Union, Federally Insured: State |
| the state and federal governments. | | | | Credit Union Agency, Federal Trade Commission |
| Take the cases of Countrywide and the governor of | | | | State-Chartered Credit Union, not Federally Insured: |
| Illinois, Rod Blagojevich. Countrywide had been making | | | | State Credit Union Agency, Federal Trade Commission |
| subprime loans for years to borrowers who could | | | | State-Chartered Bank or Savings Institution, Not |
| never hope to pay them back. But few states ever | | | | Federally Insured: State Banking Agency, Federal |
| looked into the bank's lending practices until the | | | | Trade Commission |
| subprime mortgage market collapsed and the | | | | State-Chartered Bank, Not Member of Federal |
| foreclosure crisis began to create a drag on the | | | | Reserve System, Federally Insured: State Banking |
| national economy. Then states began investigations | | | | Agency, Federal Deposit Insurance Commission |
| and lawsuits against the company, but it was already | | | | State-Charted Bank, Member of Federal Reserve |
| almost too late, as the company had sold itself to Bank | | | | System: State Banking Agency, Federal Reserve |
| of America. Why did the states wait so long to | | | | Board |
| address obvious predatory lending? | | | | Any type of lender that is not on the above list and |
| And the governor of Illinois was just recently arrested | | | | that homeowners want to submit a complaint about |
| for attempting to sell the US Senate seat left vacant | | | | should contact the appropriate state agency. If one is |
| by president-elect Barack Obama. Curiously, the arrest | | | | not available, the state attorney general or state |
| came less than 24 hours after Blagojevich ordered | | | | banking department should be contacted. In fact, the |
| state agencies not to do business with Bank of | | | | state attorney general can be sent a copy of the |
| America any longer. Of course, this may answer the | | | | complaint for any of the above-listed lending institutions, |
| question of why other states waited so long to | | | | as the states do have the right to investigate banks or |
| investigate Countrywide until after it had collapsed and | | | | mortgage companies doing business in their territories. |
| been eaten up by a larger lender. | | | | Again, homeowners who have lost a house to |
| Thus, it may be wishful thinking to expect that | | | | foreclosure may be disappointed if they believe any |
| homeowners who have lost a home to foreclosure | | | | regulatory agency will come to their rescue, put the |
| can find any real justice with regulatory agencies. The | | | | lender out of business, and give them their home back. |
| most they can probably hope for is that the agencies | | | | This will not happen. But borrowers who feel they |
| allow other potential customers of these companies to | | | | were taken advantage of may wish to keep a record |
| search for previous complaints and determine which | | | | of their complaint with the appropriate agency; after all, |
| lenders to stay away from. In any case, however, | | | | when enough people complain about a company, there |
| homeowners who believe they were unfairly taken | | | | will be no other option than to investigate it and shut it |
| advantage of should pursue filing complaints in order to | | | | down. |