FeedI am threatened with legal action over PHA scandal posts
May 24, 2006 in Overset
I received the following email, only moments ago:
Dear Pundit,
My name is (name deleted) and I am the President of (company name deleted). I have read that you have several comments on your blog regarding the Journal Star articles relating to the Peoria Housing Authority and their rental to home ownership program. I would be happy to speak with you in regard to the truth beyond this situation. (Company deleted) in no way acted in a Predatory manner and the information presented in the article was grossly inaccurate and the facts of this situation were not in any way presented.
There is so much to this story that has not been told. The real scandal is the disorganization inside the PHA. (Company name deleted) was involved only to help teach on the subject of building your credit history. The light of day will be shined on the fact of this case and I am confident in the role (company name deleted) played in helping homeowners through this process.
If you want the real story I am available anytime. If not, it is critical that you are not stating the facts that are not accurate. Calling (company name) a predatory lender without the facts is a potentially slanderous position [actually, the correct term in "libel"]. (Company name deleted) did nothing wrong throughout this process and I am proud of our role in helping 10 families obtain the American dream of ownership through this process.
As I stated, I am available for comment at anytime if you would like truth.
(Name deleted), CMC
President
(Company name deleted)
To which I replied:
I’ll be happy to meet with you for an on the record interview. I will need, however, to be given copies of the agreements you have with these 10 families you say you helped.
I am booked pretty much all week … but I can spare an hour or two Thursday morning.
I have no intention of sitting in a room while some guy speaks in generalities about how he’s performing a public service by loaning money to these folks without my knowing all the details, inluding the balloon payments and variable interest rates, as well as other issues, discussed in the Journal Star articles. I also need copies that I can show someone who knows real estate transactions and can give me an opinion of whether they are “predatory” or not.
We’ll see if I get a reply.
And is some company wants to sue me for libel, he’s welcome to try. I own nothing, and he’s welcome to half of it.
May 24th, 2006 at 11:34 pm
You forgot one “company deleted” in there, my friend.
May 24th, 2006 at 11:58 pm
Heh. Done.
May 25th, 2006 at 5:24 am
It’s okay. We already knew. It is (Name delated) of (company name deleted).
I would not be too worried about getting sued:
1. you ain’t got nothin’ - like he’s going to take your trailer?!
2. you did not intentonally mis-state any facts, you simply published your conclusory opinion, that this was predatory lending;
3. Mortgage brokers got to know, that they are walking a fine line and that even if something may not be “predatory lending” on their part, if they are brokering loans for lenders whose programs smell bad…..then they need to find lenders whose programs smell better.
4. The problem is that with the facts out there, everyone but (name deleted) is now on the record saying that the loan was a bad deal for the borrower and there is no denial by (name deleted) as to the fees that his company received.
Perspective: these commissions were a drop in the bucket for (company name deleted). If I were they, I’d have already refunded my commission to borrower. ut you can bet that despite [name deleted]’s denials, if he is any kind of businessman (and he is) that he has already notified his E & O carrier. Also keep in mind that (name deleted) was probably not personally involved in handling the paperwork, or the final closing. But his company is large enough where you are going to hire loan officers that are not always going to do the right thing. But I think the best response for (company name deleted) would have been to do something and get out in front of this, rather than issue a standard “..How could you say that about me???..” and statement threatening litigation.
Hey…it’s nice to see someone besides Chase Ingersoll in the news. And that it is PHA…makes it even better. It was about a year ago, that I told PHA that they were an excellent organization…..a marxist, communist bureaucratic organization. And that my company, being an excellently modeled, CAPITALIST organization, could no longer do business with them and would not re-new any of the leases that I had inherited with their clients as Lesees. They got their clients all pumped to treat me as the manager, like I was their “boy”, but I had the last laugh when they had to move and three months later were still looking for places that were as nice and in as decent neighborhoods as the ones I managed, while I was getting 25% more in rent.
May 25th, 2006 at 8:11 am
(Name deleted) states that (Company name deleted) was involved ONLY to teach on the subject of building your credit…well that where the “buck” should have stopped. If the real scandal, as (name deleted) states, is in the disorganization inside of PHA, then the highly organized (Company name deleted) should have seen the potential conflict of interest.
Also if you do meet with him on Thursday, we would be very interested in knowing the credit scores (at the time loans were secured) of the individuals that were so proudly helped to obtain the American Nightmare, sorry I meant dream, of home ownership.
May 25th, 2006 at 8:21 am
Chase and Robin: Sorry, but I had to edit your comments to remove the guy’s name. I believe I didn’t libel anyone. Nor do I believe I could possible to ordered to pay anyone anything do to the fact I have nothing (except a trailer that needs more in repairs than it cost to buy). I still plan on not mentioning the mortgage company or the name of the guy who runs it. It’s part of my lawsuit avoidance strategy.
May 25th, 2006 at 9:17 am
Bill,
You still mention the name of the company in the second paragraph. Better delete to have a truly effective lawsuit avoidance strategy.
However, if we’re dealing with facts and you’re reporting them based upon your investigation, why so concerned about lawsuits? What separates you from other journalist?
May 25th, 2006 at 11:00 am
“What separates you from other journalist?”
Money…. and lawyers it buys.
May 25th, 2006 at 11:11 am
Mahkno beat me to it. There’s a certain freedom that goes with being so poor you are judgement proof. But no one who can’t afford a lawyer wants to be sued either.
May 25th, 2006 at 1:35 pm
Being poor doesn’t make you judgement proof…it just means you couldn’t pay any judgement entered against you. My real point was that if you approach issues on the blog from a journalistic perspective, you shouldn’t worry about a defamation suit. If the information you present is simply your opinion label it as such since that may be a defense for defamation suits.
I can understand your point about not being able to afford an attorney to defend against a suit that might arise….however, if you delete names from every post where someone threatens a suit…..I’m not sure that you’ll maintain your readership. It makes me wonder if you overstretched in your reporting on the facts.
But given how much I love reading the site, I’m in for the first $100 to defend you on a suit!
May 25th, 2006 at 1:40 pm
Peo Proud: I see your point. I’m mostly just commenting on what I have read, not “reporting.” That’s what Elaine Hopkins has been doing.
And again, I am not seriously worrierd about any lawsuit. This is just commentary about an issue of interest to the public. I just though it prudent to not mention any names, at least not until i give the guy a chance to respond.
May 25th, 2006 at 1:49 pm
How benevolent of you! Though I doubt that he’ll reply - clearly I believe that he got his hand caught in the cookie jar. If not, he should have no problem responding - since truth is the ultiimate defense against both:
1) defamation suits; and
2) incorrect reporting.
So we’ll let him step forward.
Have fun at the Blogger Bash - I may have to joing you sometime - but alas, next week I’ll be out of town and counting on you to keep me informed!
May 25th, 2006 at 1:57 pm
We have an interview scheduled for Tuesday.
May 27th, 2006 at 8:46 am
The Journal Star beat you to it, my friend:
http://www.pjstar.com/stories/......012.shtml
May 30th, 2006 at 11:26 am
Yeah, they beat him only because they had more to lose then half of nothing.
Also, in Saturday’s article (name deleted) stated that the APR does not accurately state the interest rate in adjustable-rate mortages because the fees are paid at closing, (name deleted) said, “He (the buyer) pays the interest rate, not the APR.” Well who paid the fees at closing (name deleted), the frickin “fairy mortgage godmother.” The APR is ALWAYS the best way to compare mortgage options because it takes all fees into account.
Sometimes the BEST loan is “no loan” at that particular time!