GRRRRR! This really ticks me off!

Recently, homeowners in our local zip-code have begun receiving solicitation letters for first mortgages from "St Fin Corp". These letters begin with:

"Dear XXXXX,

This advisory is to notify you that upon careful review of your property profile, census data and XXXXX zip code we have concluded that you may meet the requirments to take part in a Community Reinvestment ACt (CRA) Program. This means that you may be entitled to cash in an amount of up to: $96,000.00."

It continues to describe the CRA, including referencing the "US Government Website http://www.ffiec.gov/cra". It then says "the CRA Program was intended to assist property owners in reducing their monthly payment and to provide them with the cash distribution above."

WHAT?!?!? Here's the kicker -- the zip code they've sent the letters to is an Upper Income Area! It wasn't until I looked at the fine print on the back that I saw that the solicitation is for valid first mortgages (not including mobile homes), and saw the name "St Fin Corp".

I was so mad I called the toll free number to inquire about the "program". The guy said it was through Star Financial, and they wanted to extend loans to this area. When I told him it wasn't a low- or moderate-income area, he replied "Well, I don't think that has anything to do with it." Excuse me?! When I told him that was precisely what the CRA was about, he said, "I just work here." I asked for a supervisor and got connected to someone's voicemail.

So, has anyone else seen this? Do you have any suggestions on what I can do about it? I'm just fuming that some out-of-town financial company is using CRA to legitimize their cockamamie loan scheme!

I have not gotten the letter but I have received a phone call from a customer wanting to know if he qualified to get a refinance through our CRA program. I'm sure that guy got a similar letter. This was probably about a year ago.

I believe one of the regulatory agencies has (or did have) a warning on it's website about CRA solicitation letters. But I can't seem to find it now.

I think I would forward the letter to my regulator and let them check into it.

Yes - I received a letter just like this, in the Southern California area. Additionally, I believe at least one regulator (sorry I cannot remember which one) has already issued a bulletin/notification on this scam.

[url=www.federalreserve.gov/newsevents/press/other/20070216a.htm]http://www.federalreserve.gov/newsevents/press/other/20070216a.htm[/url]

Here is a link to the Fed Reserve talking about this type of solicitation.