Senator Levin: Lender Abuse In Detroit
DETROIT (WWJ) – Michigan U.S. Senator Carl Levin is pushing to have the Justice Department look into reports of lender abuse in Detroit.
Senator Levin released a 639 page report of a 2 year investigation looking into the practices of mortgage lenders in Detroit.
The probe found that almost a third of mortgages written between 2005 and 2007 went into foreclosure by 2008.
In one case, a lender wrote more than 3,800 risky mortgages in metro Detroit, with more than half of those going into foreclosure within a year.
The report is being turned over to the Justice Department and the Federal Trade Commission who could then decide charge banking executives with crimes.