National Press Club

Home Equity Fraud

August 31, 1994

About This Video

Run time: 86 minutes

Public Citizen officials released a survey alleging that members of low-income, elderly, and minority groups had been victims of home equity loan scams, whereby lenders convinced homeowners into signing second mortgages with high interest rates and fees. They also took questions from the press. In August, Congress passed the Home Ownership and Equity Protection Act, designed to combat home equity fraud and abuse, though at this time it was still waiting for President Clinton to sign it into law.