Taking aim at the lending industry
Here’s a modern day David and Goliath tale. San Diego’s city attorney is taking a stand against the lending institutions that are partly to blame for a housing market that has gone haywire across the country, but particularly in Nevada, Florida, and California.
San Diego City Attorney Michael Aguirre has aimed his legal sights on Bank of America, which purchased the troubled mortgage lender Countrywide last month, as it was being sued by California Attorney General Jerry Brown for misleading and misinforming borrowers about the intricacies of interest-only, adjustable rate, and other subprime loans.
Aguirre’s lawsuit, which he filed on Wednesday, is attempting to halt home foreclosures in the area, which so far this year have totaled 20,000 in San Diego County, with financial analysts speculating that number could double by the end of the year.
“We would like to see San Diego become a foreclosure sanctuary,” Aguirre said at news conference on Wednesday.
It’s a mighty effort, to be sure, and one that in the short-term could benefit the county’s nearly four dozen school districts whose budgets rely heavily on property taxes, and in the long-term have an impact on other school systems with law enforcement agencies that follow suit.
But Aguirre’s suit, which he plans to expand to Washington Mutual, Wachovia, and Wells Fargo, seems like a long shot. If someone had an answer on how to stop the housing market from continuing to slip even further, I’m sure they would’ve come forward by now.
Naomi Dillon, Senior Editor
