Oregon Regulators Open Probe Into Portland-Based Firm's Finance Activities In Connection With Homeowners Facing Foreclosure

In Portland, Oregon, The Oregonian reports:

• State regulators have opened a formal civil investigation into a mortgage lender affiliated with the Aspen Capital investment firm. Some of Aspen Capital's executives created the lender,Gregory Funding, in 2004 to offer high-interest rate loans to borrowers on the verge of foreclosure.

• The firm's executives said their goal was to help people in a financial pinch while turning profits for investors. But about 49 percent of the firm's mortgages issued in the Portland area over five years fell into foreclosure, according to The Oregonian's analysis of property records. That failure rate is within the range of poorly performing subprime loans that ignited the recession.

• Another Aspen affiliate, FC Help, helped halt foreclosures by buying homes from struggling borrowers at less than market value, then paying off their delinquent loan. The firm offered to rent the home back to the resident or sell it back for a profit. In response to questions from The Oregonian, state regulators said earlier this year that they would review Aspen's lending and foreclosure-rescue affiliates to see if they violated consumer protection laws.

For more, see State regulators open civil investigation into Aspen Capital's mortgage affiliate.

See also, The Oregonian: Foreclosure rescues by Aspen Capital affiliate -- a lender of last resort -- failed nearly half the time.