More On The Mass AG's Suit Against Option One, H & R Block Alleging Discriminatory Predatory Lending Practices

Among the predatory practices alleged in yesterday's Massachsuetts Attorney General 's lawsuit against Option One, H & R Block, and others, The Wall Street Journal reports:

• Option One "steered even prime borrowers into more costly subprime loans",
• Loan officers were paid a $750 commission for each completed subprime mortgage loan versus $375 for a prime mortgage; they could also receive a bonus for exceeding certain targets,
• Option One was accused of "recklessly facilitating the foreclosure of borrowers' homes." In negotiating with distressed borrowers, Option One often proposed terms "that are as unfair and unsustainable as the original loans," and offered forbearance agreements with "oppressive terms" that allow the lender to foreclose if the borrower missed a payment "for even one day."

For more, see State Sues Option One.

See also, The Boston Globe: Minorities hit with higher fees, AG says (Lawsuit accuses former H&R Block mortgage arm of discrimination).