How bad is the post-bubble economy?
The economy is so bad that even con artists are giving up on real-estate scams, Tom Perez, a top Justice Department official, told an audience of progressives on Friday.
“Equity stripping is largely a thing of the past because there’s no equity to strip,” said Perez.
“Equity stripping” is a scam where con-artists persuade confused or ill-prepared people to sign home-loan contracts that transfer the property rights. Victims — often old or ill-educated — are left without their homes, but with much new debt.
Instead of equity stripping, the con artists are moving to new areas, Perez said. “Unscrupulous lenders are moving from [one legal] subject matter to [another] subject matter,” he told a May 4 meeting at the Center for American Progress.
Perez, a veteran civil rights lawyer, has changed his focus.
He and his deputies are filing lawsuits against mortgage sector firms for treating minority borrowers differently from white borrowers.
The economy is so bad that even con artists are giving up on real-estate scams, Tom Perez, a top Justice Department official, told an audience of progressives on Friday.
“Equity stripping is largely a thing of the past because there’s no equity to strip,” said Perez.
“Equity stripping” is a scam where con-artists persuade confused or ill-prepared people to sign home-loan contracts that transfer the property rights. Victims — often old or ill-educated — are left without their homes, but with much new debt.
Instead of equity stripping, the con artists are moving to new areas, Perez said. “Unscrupulous lenders are moving from [one legal] subject matter to [another] subject matter,” he told a May 4 meeting at the Center for American Progress.
Perez, a veteran civil rights lawyer, has changed his focus.
He and his deputies are filing lawsuits against mortgage sector firms for treating minority borrowers differently from white borrowers.
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