Alleged Predatory Lending—Originating “Discriminatory and Abusive Mortgage Refinance Instruments Through An Equity-Stripping ‘No Income, No Assets’” Loan Program—Fair Housing Act—Equal Credit Opportunity Act—NYS and NYC Human Rights Laws—Truth In Lending Act—Motion to Dismiss Denied—Plaintiffs’ Motion to Amend Granted—Alleged Conduct of Attorneys and Mortgage Brokers, If Proven, Could Lead to Disciplinary Action, Civil Liability and Criminal Prosecution
THE DEFENDANT lending entities (lender) had provided the plaintiff homeowners with mortgages and/or other financing (mortgages). The plaintiffs alleged that the lender engaged in a “predatory practice of originating discriminatory and abusive [mortgages] through an equity-stripping ‘No Income, No Assets’ (NINA) loan program until 2009.” The lender had allegedly “originated loans to individuals with significant home equity and very low credit scores, disregarding their ability to make payments and ensuring a stake in homeowner equity with very high interest rates triggered upon the inevitable default on these loans.” The plaintiffs claim that “this program, even where facially neutral, disproportionately saddled minority homeowners…with exorbitant, unaffordable mortgages that were expected and intended to fail at origination.”
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