predatory lending

Law
2:21 pm
Fri July 26, 2013

Predatory lending lawsuit against Morgan Stanley moves forward, the suit involves Detroit homeowners

(file photo)
Steve Carmody/Michigan Radio

A federal judge ruled this week that a lawsuit accusing investment banking giant Morgan Stanley of predatory lending in Detroit can move forward.

The lawsuit alleges Morgan Stanley pushed sub-prime mortgage lenders to target Detroit neighborhoods with large minority populations.

Morgan Stanley later packaged the ‘high risk’ loans into ‘mortgage backed securities’

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