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Strickland, Dann go after subprime lenders
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Governor Strickland and Attorney General Marc Dann said Thursday that they’ll issue subpoenas and take other aggressive measures against subprime mortgage lenders.
Ohio has had more home foreclosures than any other state except Florida and California.
The subpoenas could lead to possible prosecution against lenders.
The announcement comes about a month after Strickland asked lenders to agree to various measures to help struggling homeowners stay in their homes.
One proposed measure was to offer homeowners six months’ notice before an adjustable rate mortgage was to reset.
Strickland says individual lenders failed to respond, and the Ohio Mortgage Bankers Association gave an inadequate response late Wednesday.