The Latinos Were Worst Hit By The Foreclosure Crisis

September 3rd, 2009 | Tags: Foreclosure Crisis

foreclosure-crisis

In southwest Connecticut the Latinos were worst hit by the foreclosure crisis thanks to predatory lending. The scheme was manipulated by a real estate firm in Stamford to predate largely on the Latinos steering them into risky mortgages. This was the charge made by Attorney General Richard Blumenthal on Tuesday 25th August 2009.

The victims numbered 120. Many were not conversant with English. It resulted in nearly 33 houses worth many millions to be gobbled up by foreclosure said Blumenthal. He said that the case would go to prosecutors of the state and federal governments for pursuing criminal investigations.

Blumenthal outlined a “renegade real estate ring”. Customers having dealings with Roman Reality (affiliate of Century 21) on Bond Street would be referred to a neighbouring mortgage firm. Later another third company would falsify their incomes for purposes of loan applications.

On behalf of Department of Banking and Department of Consumer Protection, Blumenthal is suing VRM Mortgage Co., Roman Reality and the owner of the firm Victor Roman together with the office manager of VRM, Tony Mojica. He has also brought legal suits against Jose Flores of Harvard Financial Services on Virgil Street in Stamford. The matter is being dealt with by the Hartford Superior Court. It is alleged that the defendants made huge profits from dealings in property, commissions of brokers and other such fees by misguiding clients and lenders through false applications for mortgage loans. Blumenthal noted, “Enriching themselves with endless commissions and fees, these alleged scammers concocted key facts and lured borrowers into unaffordable loans. This massive predatory lending scheme deepened economic despair for homeowners and damaged property values in the region. My office will fight for stiff penalties, restitution for consumers and a court order blocking these companies from committing future harm.”

The deals were conducted in Stamford, Norwalk, Bridgeport, Naugatuck and Darien. Calls were made to VRM Mortgage, Roman Reality as well as Harvard Financial Services but these were not taken.

Blumenthal said he wants the cheated house owners to be restituted together with the duped lenders. Steps should be taken to ensure that the licenses of the defendants be cancelled. He noted that the operations started from 2002 April. Roman operated VRM as an authorized brokerage firm side by side with his own Roman Realty firm. He brought many Hispanic potential borrowers who were self-employed to the offices of VRM. For falsifying income amounts help was taken of Harvard Financial Services. For each step high fees exchanged hands.

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