Central District Consumer Bankruptcy Attorney's Association

The following is a recent case update by Professor Dan Schechter, Loyola
School of Law, regarding predatory lending in the wake of the subprime
lending crisis.
Lender's Failure to Verify Borrower's False Income Statement Violates
er
Damages [LaSalle Bank, N.A. v. Shearon (N.Y. Supp.).]
A New York trial court has held that a lender who failed to verify a
borrower's admittedly false income statement had thereby violated the
state's predatory lending statute, which requires due diligence. Further,
the borrower was permitted to seek avoidance of the underlying mortgage
obligation and to recover damages, apparently from the originating lender's
assignee. [

The post was migrated from Yahoo.