Tuesday, June 06, 2006


More mortgage fraud?

National City bank says:
When it comes to meeting the needs of our customers, we go beyond the
compliance requirements of applicable laws, especially when we believe that
additional protection is necessary to ensure that we’re keeping our pledge to
do what’s right. In fact, if we fail to do this for any reason, we’re committed
to promptly addressing the situation. - John D. Gellhausen, Executive Vice President
National Consumer Finance
But, uh, maybe not. According to the Dispatch, it seems HUD believes National City (and Huntington) has been trying to get taxpayers to foot the bill for its bad business practices and decisions:
National City Mortgage and Huntington National Bank could face fines and other penalties for improperly dumping $265 million in troubled mortgages into a government insurance program.

Separate government audits obtained by The Dispatch accuse the two Ohio-based lenders of shifting mortgages with histories of late payments off their books and into the Federal Housing Administration insurance program.

The transfers in many cases could amount to administrative fraud, not mere mistakes, because they included letters certifying that the borrowers hadn’t missed payments, according to reports by the inspector general for the U.S. Department of Housing and Urban Development.

. . .

National City accounts for $263 million of the mortgages in question.

. . .

National City and Huntington were audited because they often submitted FHA loans late, according to the reports.
If this kind of crap pisses you off, send some love and money to the the Coalition for Homelessness and Housing in Ohio who have done great work to keep sleazy mortgage practices on the front pages and embarrasing legislators to do something relevant for a change.


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