Fla. Lawmaker Calls For Investigation On HELOC Complaints

Posted by Orb Staff on January 26, 2010 No Comments
Categories : Residential Mortgage

Mike Haridopolos, Florida's incoming Senate president, has called for hearings in Tallahassee to investigate claims that banks have fraudulently or arbitrarily reduced borrowers' home equity lines of credit (HELOCs).

‘I have heard the stories of this happening across our state and our country, and the courts are filled with lawsuits,’ says Haridopolos, R-Merritt Island. ‘This needs to be investigated because if true it's outrageous. The very banks that are bailed out with taxpayers' money then stick it to homeowners?’

Although federal regulations permit account suspensions when financial circumstances adversely change or when properties suffer a substantial decline in their value, many homeowners are claiming that the banks are using false pretenses as excuses to call in home loans, Haridoplos' office says.

Haridopolos says he is asking his Washington counterparts to call hearings as well.

"When Congress gave away the taxpayers' money to the banks, they guaranteed the public that if the banks did not use it to lend money, they would immediately call for hearings and hold the banks accountable,’ says Haridopolos.

Haridopolos says he wants his hearings to include testimony from homeowners, consumer groups and bankers.

SOURCE: Office of Florida Sen. Mike Haridopolos

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