WHAT’S NEW AT FHLP?

(last updated December 1, 2006)

In the News

On November 25, 2006, FHLP Outreach Coordinator Nuemi Guzman appeared on the television show “Mi Agente de Real Estate” to discuss predatory lending in the real estate field.  The show, hosted by Richard Gonzalez, was conducted in Spanish to reach a particularly vulnerable population of home owners – monolingual Spanish speakers.

FHLP attorney Stephanie Stevens also explained the dangers of predatory mortgage lending to the public.  She was a guest on the radio show “Let’s Talk Real Estate,” on KSCO 1080 AM on November 30, 2006.

Private Firms Co-Counseling with FHLP

Many private firms have increased their pro bono representation by co-counseling predatory lending cases with FHLP.  In addition to helping needy clients, the firms gain litigation experience for their attorneys.  The following firms have provided pro bono assistance for FHLP clients in the past year:

DLA Piper Rudnick Gray Cary US LLP

Fenwick & West, LLP

Fish & Richardson P.C.

Gibson, Dunn & Crutcher LLP

Greenberg Traurig LLP

Howrey LLP

Latham & Watkins

Manatt Phelps & Phillips, LLP

Orrick, Herrington, & Sutcliffe LLP

Thelen, Reid & Priest LLP

Wilson, Sonsini, Goodrich & Rosati LLP

If you work for a law firm and are interested in donating your time to stop people losing their homes to unscrupulous mortgage brokers and lenders, contact Kerstin Arusha at kerstina@lawfoundation.org for more information.

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Recent Settlements

• Trailer Park Cannot Discriminate Against Children

A family with a little girl attempted to rent a trailer as a temporary home while their house was being built.  The trailer park did not allow children as long term residents and charged extra for children staying short term.  The trailer agreed to change their policies, attend training, and pay $32,000 in compensatory damages to the family and Project Sentinel.  Plaintiffs’ attorney fee petition will be submitted for determination by the court.

• Latino Couple Given a Better Loan

A Spanish-speaking couple was tricked into a loan with hidden terms and fees.  The broker and lender agreed to get the couple a 30-year fixed loan at a low interest rate with the principal reduced by $35,000, plus defendants paid $40,000 in damages and attorney fees.  Defendants also absorbed approximately $15,000 in costs and agreed to policy changes and training.

• Day Care Discrimination Victim Compensated

Operator of in-home licensed day care sought a new home to rent.  Several landlords refused to rent to her when they learned she operated a day care.  The landlords’ policies were confirmed through testing by Project Sentinel.  Two cases resulted in litigation and settlement, for a combined total recovery of $24,500.  Both landlords agreed not to discriminate against day care providers in the future.

• Access for Mobile Home Resident Using Wheelchair

A man who needs a wheelchair because of a severe seizure disorder lives in a mobile home park.  He was unable to leave his space because of the high speed bumps recently installed in the park’s roadways.  Through FHLP’s advocacy, the management shortened the speed bumps to allow him to travel in his wheelchair.  Now he can access the common park facilities, pick up his mail, and visit other residents.

• Couple Targeted for Predatory Home Loan, Settlement for $250,000:  A monolingual Spanish-speaking couple was solicited at a flea market and told that they could afford to buy a house.  They were lied to about the terms of the loan and their signatures were forged on certain documents.  The case resolved with the brokers agreeing to attend training about fair lending laws and all defendants paying a total of $250,000 in compensatory damages and attorney fees.

• Elderly Woman Receives Her Home Back and Financial Compensation  An elderly woman was victimized by a “foreclosure rescue” scam.  She wanted to refinance her home, but instead ended up signing over her home and becoming a tenant.  When she could not afford the exorbitant “rent,” she was evicted.  After more than a year of litigation, the woman has received the deed to her home back, plus financial compensation and attorney fees totaling $250,000.

          For more settlements click HERE.