®*!* ^orflanh (¡Observer
August IO. 2011
IN S ID E
Week ¡nThe Review
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Fred Meyer
What's on your list today?,
p^2
pages 6-7
Senator on Mission to
Expose Mortgage Scams
O pinion
pages 8-9
Portland visit points out loan abuses
by M indy C ooper
T he P ortland O bserver
page 10
M ET RO
pages 11
A ugust C alendar
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A
rts
' V iNiin
U.S. Sen. Jeff Merkley of Or­
egon held a news conference Fri­
day in northeast Portland to ad­
dress the dangers of mortgage
modification scams, which he said
is costing families their homes.
Victims of the loan scams shared
their stories at the event and urged
other Oregonians to be cautious
when companies contact them to
offer help in securing mortgage
modifications and offer assistance
to individuals to negotiate with
their bank for new lending terms.
“The stories that I’ve heard
today are heartbreaking and just
plain wrong,” said Merkley. “We
can’t allow our families to be taken
advantage of when they are going
through the mortgage modifica­
tion process.”
After requiring money up-front
and promising that a lawyer would
act on their behalf, victims said
these companies stopped return­
ing calls and never contacted the
bank.
Many homeowners were left
with thousands of dollars out of
their pocket and further confu­
sion and problems with their mort­
gage modification.
During a visit to the Portland
Observer offices after the press
conference, Merkley said ending
these scams is a “personal mis­
sion.”
The senator also said ex­
pressed his full support for the
new Consumer Financial Protec-
Jeff Merkley
tion Bureau which is working to
give consumers the information
they need to understand the terms
of their loan agreements and to
educate the public with the belief
that an informed consumer is the
first line of defense against abu­
sive practices.
Last May, Merkley and Minne­
sota Sen. Amy Klobuchar, were
successful in getting an amend­
ment to Sen. Chris Dodd’s finan­
cial regulatory reform law to pro­
tect mortgage consumers from
predatory lending practices. It
prohibits mortgage lenders from
receiving hidden commission
payments when they sell high-
cost loans and prohibits compa­
nies from giving loan officers
higher pay for selling riskier or
higher-fee loans.
The am endm ent also sup­
ported strong underwriting stan­
dards to ensure borrowers have
the ability to repay their loans and
can really afford their mortgages;
and precludes lenders from offer­
ing so-called “liar loans” and “no­
doc” loans.
In Portland, Merkley said he
was dedicated to exposing preda­
tory lending while a state senator
in Oregon and has made it a prior­
ity during his service in the U.S.
Senate.
“We need to take steps to stop
these scams but we also must make
the public aware that there are con
artists looking to take advantage
of people,” he said.
INIIIIAINMINI
Police Custody Death Reviewed
pages 13-15
DA’s office says suspect
died of cardiac arrest
R eligion
page 16-17
lì
C lassifieds
F ood
page 20
page 18
that was pulled over because of a faulty tail light.
He was wanted on a parole violation warrant. Police
say he ran two to three blocks and jumped over
three fences. The Oregon state medi­
(AP) — A prosecutor's review has
cal examiner's office says Johnson
found no improper conduct by Port­
had a significantly enlarged heart. A
land police in the July 10 cardiac ar­
urine
drug
screen
show ed
rest death of a man who ran from
methampetamine and cannabinoids in
police.
his system.
After reviewing police reports in
The Oregonian said Johnson com­
the death of Darris Eugene Johnson,
plained of shortness of breath but the
prosecutor Bob Leineweber of the
officers thought he was exhausted by
Multnomah County district attorney's
the chase. The officers stopped en
Darris
Eugene
Johnson
office concludes the two arresting
route to the precinct to check Johnson
officers "showed professional diligence and care." and found no pulse. They called for an ambulance
The 26-year-old man was a passenger in a car and began CPR