The Real Deal Miami

Home equity practices draw Florida Senate ire

January 28, 2010 05:08PM

New Florida Senate president Mike Haridopolos wants banks to answer to allegations that they squeezed customers and fraudulently reduced home equity lines of credit in order to boost profits after receiving hundreds of billions of dollars in federal bailout money. Haridopolos, a Republican who represents Merritt Island, on the Space Coast, said the
issue needs to be investigated, and if it proves to be true, is
outrageous. He said the same banks that were bailed out with taxpayers’
money have also victimized homeowners. While federal regulations permit account suspensions for home equity lines of credit when financial circumstances adversely change
or when properties suffer a substantial decline in their property, many
Florida homeowners have claimed banks are use false pretenses as
excuses to call in home loans, he said. TRD