Cincy CDC Settles With Loan Flippers

By Shelterforce

Price Hill Will, a CDC in Cincinnati, agreed to an out-of-court settlement with a group of mortgage appraisers, investors and brokers that allegedly took part in a property flipping scam. Damages will go to a revolving loan fund that supports housing initiatives. The CDC had sued for the net loss in property value caused by concentrated neighborhood foreclosures that resulted from the scam. It based much of its case on a recent report that found each foreclosure in the Chicago region reduced nearby property values in poor areas by up to 1.4 percent. (Woodstock Institute)

Published by the National Housing Institute