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Mega Banks Sue Mortgage Company For $19 Million

Long Island Bank and NY Bank Executive Respond to Newsday Article - Following a November 18th Newsday article, HTFC Corporation's Chief Executive Aaron Wider responds to reported inaccuracies

Long Island, NY -- (November 28, 2007) -- Chief Executive Aaron Wider, in response to the Newsday article about himself and his bank, HTFC Corporation that ran November 18, says there are several inaccurate statements made in the article.

The Newsday article stated the following:

"Wider's bank, HTFC Corp., is being sued in federal court by two large banks it sold millions of dollars in loans to - Pennsylvania-based GMAC Bank and a subsidiary, Minnesota-based Residential Funding Company - which charge in court records that the loans were fraudulent."

Wider disputes the claim that the loans were fraudulent. Wider says, "Both RFC & GMAC have sued HTFC Corporation in federal court for losses that don't exist which have already been established in Minneapolis and Philadelphia (Minnesota case pending summary judgment, Minnesota file # 06cv3973 Minnesota US District Court and Pennsylvania file # 06cv5291 US District Court Eastern District PA)."

The Newsday article implicates Wider further by stating:

"If the allegations are true, it suggests that Wider and his associates turned a profit on the real-estate deals by selling homes at inflated prices; issuing loans to cover those higher prices; and selling off the loans to other banks, thereby eliminating his responsibility for the loans if the borrowers stopped paying their mortgage. The two banks are seeking $19 million in damages."

Wider responds to this allegation by saying, "RFC & GMAC are in $186,000,000,000 in debt and are suing as many of the mortgage companies around the country to accommodate liquidity because of the mortgage collapse."

The Newsday story further contends:

"A closer look at his (Wider's) lending practices, however, reveals that many of these loans relied on faulty appraisals and exaggerated loan applications, leaving behind angry homeowners who are struggling to pay mortgages on overpriced homes."

Wider responds, "There are no angry homeowners. There have been no complaints lodged ever with any state or federal agency anywhere in the country nor have there ever been any consumer lawsuits."

The Newsday article accuses Wider of inflating the market:

"Along with a handful of associates, Wider bought and sold houses and issued mortgages for at least 30 properties, pushing the prices of some homes to as much as $300,000 above similar sales in the area, a Newsday investigation has found. Most of the time, the houses were sold twice on the same day."

Wider responds, "Properties that are sold at quick sale value and estate sales are given at a bargain price. When a property is sold below market value and is then sold at fair market value, it's only an acquired skill that completes the transaction."

According to Wider, investors and speculators may not be penalized or restricted of commerce under the Sheraton Antitrust Act of 1890.

"The fact remains that 85% of the mortgage market has collapsed," says Wider, "and HTFC Corporation has remained solvent and is one of the 5 companies on the non-implode meter on http://ml-implode.com/ which still supports the primary mortgage market around the country."

"Newsday has never put into print that the ECOA Act and Fair Credit lending laws are consistently violated in East Massapequa. HTFC Corporation is the only bank that does not red line and upholds USAP laws," says Wider.

Wider further disputes certain statements made in the Newsday article: Wider has never been married, fraud was never mentioned in any lawsuit he has been involved in and he has never loaned money to dead people.

About HTFC Corporation

HTFC Corporation has been in business since April 8, 2002. HTFC Corporation is a proud sponsor of City Relief, Ronald McDonald House, Bowery Mission, Kids with a Promise and many other charitable organizations.

SOURCE: HTFC Corporation
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