Lenders cannot make loans in New York without considering borrowers' ability to repay
US District Court for the Eastern District of New York Issue: Mortgage Lending
Complaint, filed July 25, 2007
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CRL's complaint on behalf of the plaintiff in Jack v. Golden First Mortgage Corporation. CRL represents a homeowner in New York who alleges his mortgage broker, in order to obtain high compensation (including a yield-spread premium), misrepresented the features of a payment option adjustable rate mortgage funded by American Home Mortgage, and he alleges that he would be unable to afford the loan once he was required to make amortizing payments. The case, which alleges violations of New York's consumer protection laws, common law, the federal Truth in Lending Act, and the Real Estate Settlement Procedures Act, was filed in the U.S. District Court for the Eastern District of New York.