Skip to main content

Report Cites Abuses in Land Contract Transactions

Phil Hall
Jul 14, 2016
The National Consumer Law Center (NCLC) has issued a report warning against a new wave of predatory lending aimed at non-Whites and immigrants

The National Consumer Law Center (NCLC) has issued a report warning against a new wave of predatory lending aimed at non-Whites and immigrants.

According to “Toxic Transactions: How Land Installment Contracts Once Again Threaten Communities of Color,” unscrupulous businesses are marketing land contracts at a disproportionate rate to low-income non-White and immigrant households under the guise of being an alternative path to homeownership. However, the report warns that these land contracts enable investors to eschew the responsibility of maintaining properties, while robbing borrowers of the financial viability and legal protections that come with traditional homeownership transactions.

The report focused on the actions of Harbour Portfolio, which held 94 properties in predominantly African-American Atlanta neighborhoods, as well as Shelter Growth Capital Partners, a $500 million-asset operation founded by former Goldman Sachs executives. The report also called on the Consumer Financial Protection Bureau (CFPB) to exercise a more vigorous regulatory control on this aspect of the housing market.

“This predatory financial product sucks away hard earned dollars from people who believe they are investing in the dream of homeownership, only to find it was a mirage,” said Sarah Bolling Mancini, of counsel to the NCLC and co-author of the report. “Particularly in credit-starved communities of color, companies pushing land installment contracts are taking away the home equity that should be built up by the people living in these communities and transferring it to Wall Street-backed investors. Action is urgently needed to stop this unfair and deceptive product before it puts more consumers at risk.”

Jul 14, 2016
loanDepot And mellohome Introduce Home Services Bundle

loanDepot, Inc. and its sister company mellohome are launching a proprietary bundle of home buying and selling services.

Industry News
Jul 30, 2021
Gateway Mortgage Surpasses 165 Mortgage Centers With 10 New Additions

Gateway Mortgage reported significant growth in the company, prompting it to open 10 new locations across Colorado, Idaho, Oklahoma, Texas, Oregon, and Wyoming.

Industry News
Jul 30, 2021
FHFA Requires 30-Day Notice Prior To Eviction

Wednesday, the Federal Housing Finance Agency (FHFA) announced that tenants of multi-family properties must be given 30 days notice to vacate before the tenant is required to leave the premise.

Industry News
Jul 29, 2021
Houston-Based Stewart Acquires Title First Agency

Ohio-Based Agency Has 20 Offices And Operates in 32 States

Industry News
Jul 28, 2021
Planet Home Lending Reports Total Origination Volume Of $6.8B In Q2 2021

Planet Home Lending's total origination volume reached $6.8 billion in Q2 2021, up 77% from $3.9 billion in Q2 2020.

Industry News
Jul 22, 2021
FHFA Ends Controversial Refinance Fee

The FHFA announced that Fannie Mae and Freddie Mac will eliminate the Adverse Market Refinance Fee for loan deliveries, starting August 1, 2021.

Analysis and Data
Jul 19, 2021