Says Community Reinvestment Act offer is bogus
Tuesday, April 03, 2007 Inman News
Some mortgage lenders are using a deceptive direct mail campaign that encourages homeowners to apply for a loan by claiming they are entitled to cash grants or equity distributions under the Community Reinvestment Act.
The Federal Deposit Insurance Corp. issued a warning Monday saying that the CRA is a real law, but that the offer is not.
Consumers have contacted the FDIC with questions and complaints after receiving solicitations suggesting there is a "Community Reinvestment Act (CRA) Program" that entitles certain homeowners to payments.
"These solicitations appear to be a deceptive effort to encourage consumers to apply for a mortgage loan secured by the consumer's home," the FDIC warned.
Enacted in 1977, the Community Reinvestment Act encourages banks and savings and loans to make credit available in low- and moderate-income neighborhoods, but does not entitle individuals to any grants or loans.
The FDIC did not identify the lenders using the ploy by name. California attorney general's office was investigating complaints from consumers about a similar direct marketing campaign.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment