Dallas Firm Put Black Homeowners at Higher Risk of Foreclosure, Suit Alleges

The Dallas Morning News|  August 19, 2016       Dallas equity firm Lone Star Funds is being sued by a group of black homeowners in New York who allege the company pushed them toward foreclosure by misleading them about their mortgages.

A 53-year-old plaintiff told a federal court that the company's mortgage servicer would call him almost every day — sometimes two or three times a day — threatening foreclosure and pressuring him to accept an unfavorable change to his loan.

Lone Star's mortgage servicer, Caliber Home Loans, disputed the allegations and called the lawsuit "without merit."

The federal suit filed last week also targets the U.S. Department of Housing and Urban Development. At issue is the agency's sale of delinquent mortgages backed by the federal government to private investors such as Lone Star.  

Those sales leave homeowners with fewer protections and disproportionately harm black families because their share of government-insured mortgages in New York City is higher than that of white families, according to the suit. 

A HUD spokesman declined to comment. Meanwhile, Irving-based Caliber maintains that it treats borrowers fairly.

"Every Caliber loan modification is reviewed thoroughly without regard to race, gender, religious, or sexual orientation," executive vice president Marion McDougall said in a prepared statement.  Read more here.

To Fight Foreclosure, NYC Buying Mortgages

ABC News |  June 30, 2016    New York City is taking a novel approach to addressing enduring pockets of the home foreclosure crisis by buying long-unpaid mortgages, with plans to help owners stay in their homes if possible or use the properties as affordable housing if not, officials say.

It's among the first cities to pursue buying such loans directly from the federal Department of Housing and Urban Development, officials say. Housing advocates and some lawmakers have pressed HUD to make it easier for cities and nonprofit groups, as opposed to investors, to buy troubled mortgages.

New York is announcing the $13 million program Thursday. Details of the program were provided to The Associated Press ahead of a planned afternoon announcement.  Read more here.