COURT RULES THAT BLUEHUB CAPITAL IS A PREDATORY LENDER

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COURT RULES THAT BLUEHUB CAPITAL IS A PREDATORY LENDER

Boston, MA, August 27 – Suffolk Superior Court ruled that BlueHub Capital (“BlueHub”), a Roxbury-based nonprofit organization,engaged in predatory mortgage lending in violation of Massachusetts consumer protection laws. The ruling also found that the legislation supported by Governor Healy and passed by the state legislature providing unprecedented immunity for BlueHub, was not retroactive and did not undermine the judicial proceeding. 

This litigation stems from a six-year class action lawsuit filed in March 2020 by homeowners, who asserted that BlueHub was operating as a predatory lender.  BlueHub, under CEO Elyse Cherry, profited by extracting 40% to 60% of the home appreciation value from struggling families through its predatory shared appreciation mortgage.  This is in addition to significant fees and high interest rate. Homeowners, mostly low-income, elderly, and minority have been exploited by BlueHub Capital who stand to make more than $60 million from the homeowners with Elyse Cherry personally making over one-million dollars a year.

NACA first exposed BlueHub’s predator practices in 2009 during the mortgage crisis and has paid over $1.25 million in support of the litigation.  Bruce Marks, CEO and Founder of NACA, stated, “We believed from the very beginning that BlueHub never cared about the homeowners and that their mortgage program was nothing more than a cash cow scheme that exploits homeowners determined to save their dream of affordable homeownership. This is a great victory for the homeowners.”  Furthermore, Mr. Marks states, “BlueHub has no business operating any type of mortgage lending program, and Attorney General Andrea Campbell needs to prosecute this convicted predatory lender.” 

Plaintiffs’ Attorneys Jeffrey Wiesner and David Kelston stated that the ruling is a significant victory for their clients. “After years of litigation, the court has unequivocally ruled.  BlueHub Capital is a predatory lender.  The decision confirms that the BlueHub’smortgage program has long violated the most fundamental legal protections provided to residential mortgage borrowers, specifically the Truth In Lending law and the predatory home loan practices law codified in Massachusetts General Laws ch. 183C.”

Evidence of BlueHub Capital’s Predatory Practices:

NACA remains committed to standing up for homeowners and ensuring that the voices of vulnerable families are heard. The fight for economic justice and fair lending practices continues. 

关于 NACA（美国邻居援助公司）：

NACA, founded in 1988, is the largest HUD-approved non-profit organization focused on community advocacy for homeownership in the United States. It has been a leader against predatory lending since the 1980s and boasts the most effective housing counseling program, helping over 250,000 homeowners during the mortgage crisis.  Through its 49 offices nationwide, NACA offers the Best Mortgage in America. Founder and CEO Bruce Marks was named the 2007 Bostonian of the Year for his work in urging lenders to modify predatory loans and has testified before Congress about the mortgage crisis. For more information, please visit https://www.naca.com.