Sub-Prime Lenders Take a Hit in Missouri

     Juries, my favorite law enforcers, have whacked three sub-prime lenders big time, 99 million dollars in punitive damages.

This case is based on Missouri law, so will not be applicable outside Missouri.  Unfortunately, Michigan state law does not allow punitive damages.

The underlying crook in the Missouri cases, the mortgage originator, had already gone belly up, and its owner imprisoned.     I cannot help hoping there is more of this to come, just desserts for the irresponsible lending the Fed all but required.

The cases involved, surprise, high interest rate second mortgages with innapropriate fees charged.

Michigan has more than its share of these mortgages.

The jury did not buy the argument that the defendant sub-prime mortgage companies bought the loans from the crook in good faith, and should not be liable for things they did not do.

The jury figured out the defendants “enabled the conduct in question” as one of their attorneys put it in the linked to article.

RESPA, the federal statute, Real Estate Settlement and Procedures Act, applies everywhere in the U. S.

Among other things, it requires mortgage companies to provide you with a complete accounting of what they did with all the payments you sent them, if you make the proper request.

A sample request letter can be found here.

We should all have this information about our mortgages.

If you have questions about the terms of a mortgage loan you took out, get all the documents together and find a qualified attorney.