Mtg Company To Cop Guilty Plea Under Threat Of Jail Time For Housing Code Violations On Foreclosed Home Unloaded On Unwitting Couple

In Lockport, New York, the Lockport Union-Sun & Journal reports:

• A mortgage company called into city court over housing code violations will take a plea deal conditioned on its promise not to dump a financial penalty on the house’s new owners.

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• [American General Home Equity initially] wouldn’t agree to fines and refused to plead guilty to anything at its Sept. 2 court date, insisting on a trial instead. Only then did the mortgage company acknowledge the court case to the [new owners], they said, in a phone call from a representative warning them they’d better show up for the trial because they were on the hook, too, as per the contract. The couple went public with their dilemma soon after.

• Behind the scenes, city officials angered by the mortgage company’s apparent dodging maneuver pressed [local prosecutor Matthew] Brooks to keep pursuing the company while also shielding the [new owners]. Ultimately, city attorneys said, the pointed suggestion made to American General is that when the time arrived for sentencing in the case, community service, or jail time, could be handed down to a company executive just as easily as fines on the corporation.

For more, see Plea deal spares Harvey homeowners.

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