Banks in India too have their bits of Frauds.
Top PSU’s ,including LIC Housing were involved in Home loans scams and many senior executives were arrested.
Of course nothing has been heard ever since their arrest quite some time ago.
Banks use many tactics to defraud he home loan customers.( see related)
After the Loan is fully paid,consumers are asked to pay extra amount(it varies from Bank to Bank), before they issue ‘Release Letters’.
Documentation charges–why?(again varies from Bank to Bank)
Story:
WASHINGTON — A set of confidential federal audits accuse the nation’s five largest mortgage companies of defrauding taxpayers in their handling of foreclosures on homes purchased with government-backed loans, four officials briefed on the findings told The Huffington Post.
The five separate investigations were conducted by the Department of Housing and Urban Development’s inspector general and examined Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial, the sources said.
The audits accuse the five major lenders of violating the False Claims Act, a Civil War-era law crafted as a weapon against firms that swindle the government. The audits were completed between February and March, the sources said. The internal watchdog office at HUD referred its findings to the Department of Justice, which must now decide whether to file charges.
The State Bank of India, the country’s largest commercial bank, has been forced to withdraw “teaser” mortgage loans amid fears of repeating the lending follies of the US subprime crisis.
Under pressure from the Reserve Bank of India to curb what the regulator considered potentially reckless lending, the SBI said last week that it would scrap the home loans from May.
http://seekingalpha.com/instablog/522286-silentplanet/169284-indian-banks-scraps-teaser-home-loans
Related:
| (CONFIDENTIAL AND WITHOUT PREJUDICE) Attn : Existing HDFC Home Loan Customers – Join Yahoo Group The existing customers of HDFC home loan have formed a group at Yahoo Groups by the name of ‘hdfchomeloancustomers’ to address the concerns of existing customers who are paying high interest rates. The group unites Hdfc customers and intends to take the issues like high interest rates, conversion fee, increase in loan transfer fee and treatment of old customer’s with HDFC. The group is very active, vibrant with people from diverse vocations and regions. Please join the group. Please forward to all you know are HDFC customers” |
Thanks for this information, though its long but i am new to this industry.
Thank you for sharing this blog with us.
Bank home loan