Predatory Equity? Funding FOR conversion

The mortgage for this (and many other) Coltown Buildings is held by New York Community Bank (NYCB). It is a lenders duty to ensure the value of the loan is valid. Property records and rent rolls should be part of this process. Funding rent stabilized/regulated buildings, well over rent over income/value is known as predatory equity.

For this building, the mortgage states conversion to condominium is forbidden, then by rider NYCB allows it – only after receipt and review of the offering plan – which is a separate act from its mortgage. The initial offering plan for this building is not only admitted false, but contains blatantly false statements regarding facts in their own property records and rent rolls, i.e. the plan states no SCRIE tenants when there are SCRIE tenants – public records, the DOF property tax notice of value and tax bills show that fact. The bank, which mortgage claims receipt and review of the plan before approving conversion, could not have viewed the building or its records without knowing the initial plan is false.

Worse, the SWORN offering plan it allegedly reviewed for approval -after signing its mortgage- contains many pages ADMITTING the bank funded FOR conversion. This makes its own mortgage suspect and points to predatory equity.