Banks, Predatory Lenders, and Ambassadors

Boston Federal Reserve Bank president Eric S. Rosengren urged banks to take a second look at subprime borrowers, saying many have improved their credit scores since buying a home. If that is the case banks could step in and help those homeowners. Meanwhile arguments and debates continue as issues are labeled as “bailouts” or “rescues.” It is interesting to note the soundness of Rosengren’s theory – which it is – while contrasting it against new issues of predatory lending.

In our “lawsuits” section we see new predatory lending investigations and suits. Unfortunately these borrowers may not stand a chance of being refinanced by traditional banks. Such is the legacy of predatory lending. Skeptics make a different point, saying the two biggest predatory lenders that paid the biggest fines in the Untied States bear considerable watching. The two are Household International and Ameriquest. Some suggest Ameriquest settled their predatory lending suit so their Chairman could be rewarded for his efforts.

HSBC, headquartered in London, bought Household International in 2003, although complaints continue. President Bush made Ameriquest’s Arnall the ambassador to the Netherlands. Roland E. Arnall of California is Ambassador Extraordinary and Plenipotentiary of the United States of America to the Kingdom of the Netherlands. He was sworn in by Secretary Rice on February 27, 2006. Previously, Ambassador Arnall was Chairman of the Board of Ameriquest Capital Corporation, a privately held financial services company headquartered in Southern California.

So far removed from working class families with adjustable rate mortgages some suggest the government and big banks don’t care about anyone’s home or their mortgage. We report so you can decide. Comments are always welcomed.