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Subprime Mortgages and Home Loan Litigation:
Thornton & Naumes is currently investigating claims resulting from "subprime mortgages." These loans are offered to consumers who are categorized as high risk because of bad credit or insufficient income. Across the country foreclosure rates are up over forty percent, with subprime loans accounting for the vast majority of all home foreclosures. The Federal Reserve Bank of Boston recently said that borrowers falling behind on subprime loans was a major factor behind the record 15,000 foreclosure notices filed in Massachusetts Land Court in 2006.
Generally, subprime loans are 3 points higher than conventional loans and have much higher costs and fees. Although these mortgages are legal, recent evidence suggests that many lenders have targeted specific individuals for subprime loans even though these borrowers could have qualified for a conventional loan. A recent study has shown that African-Americans and Latinos in Boston were far more likely to get a high-cost subprime loan than were white borrowers at the same institution.
If you have a subprime loan and believe that you were targeted or misled by a lender, contact us immediately. Although dozens of lenders have offered these loans, the largest ones are Countrywide, DiTech, Lending Tree, GMAC Mortgage, Quicken, Washington Mutual, Wells Fargo and Freddie Mac.