NY Judge Invokes Predatory Lending Law To Halt Foreclosure

James Tierney, director of the National Attorneys General program at Columbia Law School, said trial judges across the country are beginning to question banks seeking to foreclose on homeowners.

"What I am seeing is a number of trial judges saying, 'Enough is enough, fraud is fraud.' They are kind of taking a stand," said Tierney.

In many ways, experts say, the Shearon case is a classic tale of predatory lending in the subprime market, where brokers aggressively marketed more lucrative high-cost loans to people, many of whom lacked the wherewithal to pay those loans when the market turned and home prices began to fall.

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