'They are crooks': Homeowners beg lawmakers not to pass bill enabling controversial loans
BOSTON – BlueHub Capital says it's helping homeowners hold onto their houses. Critics have a different take on the Boston-based non-profit.
"They are crooks. They are criminals," said Derrick Harper, who signed a deal with BlueHub years ago.
He was one of nearly 30 BlueHub customers who testified, some in person and some in writing, at a recent Massachusetts State House hearing that lasted for hours.
"Sharecropping and land-grabbing," said Annie McKnight, another homeowner.
"I struggle every day. I don't sleep," said John Williams.
BlueHub Capital is fighting accusations in a lawsuit the WBZ I-Team has followed for years.
Homeowners-turned-activists say the lender tricked them into signing loans with something called "shared appreciation mortgages." The deals require borrowers to pay tens of thousands of dollars if they ever want to refinance or sell.
CEO Elyse Cherry has repeatedly denied WBZ-TV's requests for interviews. But she finally offered her side when she testified in the hearing, saying her company never hid information.
"We disclose it at seven different points along what is a months-long process," she said.
Legislators held the hearing to review a proposed law now under consideration called "An Act Protecting Homeowners from Unnecessary Foreclosure." Critics say it would shield lenders like BlueHub from being held liable for slipping shared appreciation clauses into mortgages.
Cherry said her company's loans have helped hundreds get back homes lost to foreclosure. She said without the new proposed law, her company couldn't do that.
"At a time when the country's headed toward a recession, we need to assure that our homeowners have access to a proven program," she said.
This report has been updated to correct the number of BlueHub customers who testified, in person and in writing, in connection with the hearing at the State House.
