New York – Regulator Benjamin Lawsky has launched an investigation into potential predatory practices by lenders who make short-term, high-interest loans secured by homes or other real estate.
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Lawsky, superintendent of the state Department of Financial Services, sent subpoenas to nine so-called “hard money lenders” seeking information about their loan policies and marketing materials, his office said in a statement on Tuesday.
The regulator is probing whether the companies are intentionally structuring hard money loans with onerous terms that may be driving borrowers into default.