WaMu Screws Poor Brooklynites; Cuomo Files Suit

It’s always been unfortunately true that the poor pay more, whether it’s milk or candy or car repairs.

But when it comes to buying a home it should be a crime to make struggling working class folks put out more money than others do.

Well, it turns out that it is a crime -- or at least a violation of federal regulations -- and State Attorney General Mario Cuomo wants the practice to stop.

Cuomo said so in a suit filed today.

Apparently banks have been arranging for selected appraisers to place inflated values on homes purchased by low-income people. This means that the unfortunate victims of this scam are charged more on the price of the house and ultimately on the mortgage.

Washington Mutual is a culprit in this scheme, according to Cuomo.

Cuomo said today that this policy has been carried out nationwide and has contributed significantly to the sub-prime lending crisis. Sub-prime loans are made to lower and lower-middle class families whose finances put them below the "prime" demographic of cash or collateral rich borrowers.

Many of those families who received sub-prime loans in Brooklyn and elsewhere are now going into foreclosure. They just couldn't afford the inflated costs.

Cuomo announced a lawsuit against eAppraiseIT, a subsidiary of First American Corp., accusing it of caving into pressure from Washington Mutual.

WaMu, as it likes to affectionately call itself, had a list of "proven appraisers" who according to Cuomo inflated home appraisals.

See the Associated Press story as passed on by Newsday.

Comments

[Chad]

WAMU is just like the rest of the mortgage lenders out there trying to screw over people to make an extra buck, but you reap what you so, and now they are going to reap!