Talk:Predatory mortgage lending

ATTENTION HOMEOWNERS! The mortgage service industry has come up with yet another way to unfairly extract money from unsuspecting homeowners through its practice of imposing “force placed insurance” on borrowers who may already have active policies protecting their homes.

This typically occurs when a mortgage service company buys an existing mortgage from the original lender, and then sends one or more notice(s) to the borrower advising that such company has acquired the mortgage and will be responsible for servicing the loan. These notices also typically include a demand (buried inconspicuously in the text of the notice) that the borrower promptly provide proof of hazard insurance, or an insurance policy selected by the mortgage service company will be purchased on its behalf. Not surprisingly, borrowers frequently overlook these notices (which look like mass mailers), or simply disregard the request to provide proof of insurance knowing that they already have an active policy protecting their property. Of course, this furnishes unscrupulous mortgage service companies with precisely the opportunity they are looking for…

When the borrower overlooks the notice, or fails for whatever reason to provide proof of insurance by the designated date, the mortgage service company purchases a “force placed” policy for the borrower at a rate that is often three times greater than the cost of comparable insurance available on the market, while burying the cost of this insurance in the mortgage. Thus, the borrower often discovers this fact, if at all, only months later when it notices the higher payment premium reflected on its monthly statement. These higher premiums may in some cases result in the imposition of late fees, additional interest, attorneys’ fees, defaults and, in the most extreme cases, foreclosure, even though the borrower at all times maintained appropriate hazard insurance on the property.

The Law Offices of Theodore F. Monroe is investigating such unfair and unconscionable practices by mortgage service companies. If you feel that you are a victim of such practices, please visit our website at: www.tfmlaw.com or contact us via e-mail at: mortgagefraudlaw@yahoo.com.


 * OK then... can we have some links to some outside sources on this. Please? I thinks its not really good form to post blanket statements about things, even in the discussion page without supporting evidence.


 * Thank you


 * Piercetp 06:37, 16 August 2006 (UTC)

About worldview statement
Would it be possible for someone with knowledge of mortgage practices worldwide to edit this article and bring it within standards.

Thank you

Piercetp 22:22, 22 October 2006 (UTC)