Protest Held at Mortgage Company

Business was not as usual on Monday for a mortgage office in Woburn. Protesters barged in to demonstrate against supposed predatory lending practices followed by the company. The company issued a written response, stating that they followed California’s strict predatory lending guidelines and complying fully with state laws. The protest was in response to figures released showing that foreclosures in California jumped by more than 44% in the month of April.

The increase, though admittedly bad, is less than the former month. April showed almost 1300 homes fell into foreclosure; March had more than 1400 foreclosures. Claims are being made that the mortgage company misled borrowers by misrepresenting products and available rates. Some loans were made with second mortgages attached without the procedure being explained to borrowers, in essence soaking up all the home’s equity and making the borrower unable to refinance out of the company's mortgage. Other borrowers have said that they were promised a fixed rate of 6.1%, and then found out that the loan was actually an adjustable rate mortgage. The mortgage company denies any wrongdoing.