Cleveland Sues Subprime Lenders

For some reason, Cleveland always seems to get the short end of the stick. If there is a general bad trend in the nation, Cleveland gets it time 10. Well, the same is true for the subprime lending fiasco. Entire neighbourhoods in Cleveland are in or have been foreclosed on. This has resulted in a big upswing in crime and blight. Well, the city isn’t taking it any more. It has sued a bunch of subprime lenders alleging the lenders acted like a criminal organization. How? Well, the allegation is the lenders made loans to people and areas that they knew could not possibly be supported for the purpose of generating fees and then selling the loans off to a secondary market before they went bad. Is this a case of paranoia? Sounds like it up front, but probably not. Subprime lenders were completely out of control and perhaps some will now pay for it.

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