Report Says Lenders Siphon Off Billions
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The nation’s lenders are gouging consumers of billions of dollars each year and have “systematically violated federal law” by padding escrow accounts to fatten profits, a report said Tuesday.
Compiled by attorneys general from California and six other states, the report said “many of the nation’s mortgage lenders systematically have broken the law” and it called on federal officials to tighten enforcement.
The study estimated the cost to consumers to be as high as $150 for every mortgaged house, amounting to as much as $3 billion dollars nationally. The report said it is routine for lenders to siphon more than twice as much as the law allows into escrow accounts.
Lomas Mortgage USA, Fleet Mortgage Corp., General Motors Acceptance Corp. and Citibank were the mortgage companies reviewed.
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