Upstate Mortgage Lender Nabbed By Cuomo
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- April
- 24
Attorney General Andrew Cuomo announced today a settlement with a Syracuse-area mortgage lender that was allegedly targeting seniors with false advertising and offering misleading home-equity linesof credit.
Under the settlement, Upstate Capital, Inc. of Basile Rowe in East 
Syracuse, must reform its marketing practices and indicate that it’s a registered mortgage broker, not a non-profit group. The company must also pay $20,000 to the state.
The company targeted elderly homeowners throughout upstate, Cuomo’s aides said, including in Rochester, Victor, Binghamton and Ithaca.
Cuomo said the company called itself the Association for Better Living (ABL) and sent flyers starting in July 2007 to homeowners promoting a “new government programâ€
that “protects seniors†by providing a monthly, tax-free income with no income or credit qualifications.
In fact the deal was a reverse mortgage, which puts a lien on a home with growing interest that must be paid back when the home is sold.
You can view the mailing here: Upstate.flyer.pdf
“Consumers must remain vigilant in the midst of the national mortgage crisis,†Cuomo said in a statement. “There are unscrupulous individuals seeking to take advantage of homeowners who have worked hard their whole lives to secure equity in their properties.”
This entry was posted
on Thursday, April 24th, 2008 at 2:44 pm by Joseph Spector.
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Settlement? The principals should be prosecuted personally.