L.A.'s Hot Zones

HUD designated certain Los Angeles neighborhoods as Hot Zones for protection from possible predatory lending practices and also allocated resources to protect consumers from unscrupulous lenders.

Read Time: 1 minute

September 28, 2000, 8:00 AM PDT

By Abhijeet Chavan @http://twitter.com/legalaidtech

The Federal Housing Administration (FHA), an agency within HUD, will employ newtechniques to detect possible predatory practices, provide stepped-up lender monitoring and enforcement, and provide relief to victims of predatory lending in the Los Angeles Hot Zone. Hot Zones are selected low-income neighborhoods where FHA has seen higher than normal foreclosure rates. Cuomo said that 21 zip codes in Los Angeles County were being targeted as Hot Zones. While the FHA insures nearly seven million homes nationwide, it has only a one-percent foreclosure rate. The FHA’s Fraud Prevention Program is currently being tested in five Hot Zones around the country –Los Angeles, Chicago, New York, Baltimore and Atlanta. The program is targeted in selectneighborhoods that exhibit a high default and claim rate.

Thanks to Abhijeet Chavan

Monday, September 25, 2000 in HUD News

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