Complaint Review: Ameriquest - Orange California

Topic: *Consumers* Date of Elert: October 28, 2005 Elert title: Texas Homeowners, Represented by Texas RioGrande Legal Aid, Win Protection From Predatory and Sub-Prime Lenders Article title: Ruling May Modify Home Equity Loans; Judge Says Texas Has Let Lenders Charge Higher Fees Than Constitution Allows; No Immediate Effect Seen Author: Robert Elder Source: Austin American Statesman (TX) Source date: October 21, 2005 -------------------------------------------------------------------------------- A Texas state court judge has warned the Texas State Finance Commission that the state constitution bars sub-prime lenders from charging homeowners fees that exceed three percent of the loan amount. A number of homeowners, represented by LSC grantee Texas RioGrande Legal Aid, filed a lawsuit against the commission last year after it decided to allow sub-prime lenders to charge one point -- the equivalent of one percent of the loan amount -- each time they perform any service, including originating, evaluating, and maintaining the loan. In a letter to the commission, the judge explained that the commission's interpretation was unacceptable because it would allow lenders to charge borrowers a fee for any service. The up-front fees charged by sub-prime lenders like the Ameriquest Mortgage Company, which lend to homeowners with less than perfect credit, add thousands of dollars to the cost of loans. One plaintiff paid more than $10,000 in fees to take out a $58,000 loan, or nearly 20 percent of the loan amount. If the judge's decision is upheld, loan companies may raise interest rates on formerly sub-prime loans to compensate for the lost fee revenue. Nelson Mock, an attorney with Texas RioGrande Legal Aid, says, The language of the constitution is clear. These weren't interpretations; they were new rules. Robert Elder, Ruling May Modify Home Equity Loans; Judge Says Texas Has Let Lenders Charge Higher Fees Than Constitution Allows; No Immediate Effect Seen, Austin American Statesman, Oct. 21, 2005, at C1. Topic: *Consumers* Date of Elert: June 30, 2000 Elert title: LSC-Funded Legal Aid Society of Columbus Attorney Represents Predatory Lending Victim, Prevents Foreclosure on Her Home Article title: Woman Fell Prey to Lending Ploy Author: Kathy Lynn Gray Source: Columbus Dispatch Source date: June 24, 2000 -------------------------------------------------------------------------------- LSC-funded Legal Aid Society of Columbus (Oh.) attorney Pamela Simmons represents 65-year-old Betty Lacey, claiming that she has been the victim of a predatory lending scheme. Lacey alleges that she refinanced her home through a mortgage with Long Beach Mortgage Company that included deceptively high monthly mortgage payments, high interest rates, and high processing fees. When she missed a monthly payment, Long Beach foreclosed on her home. In order to help Lacey keep her home, Simmons reached a settlement with Ameriquest, the lender who had taken over Long Beach's retail loan business. Simmons was also able to find Lacey another loan. During her investigation of Lacey's case, Simmons discovered had that Long Beach's practices were also the subject of a price-discrimination settlement with the U.S. Justice Department in 1996. (Lacey's loans had occurred outside of the dates of the settlement period.) Kathy Lynn Gray, Woman Fell Prey to Lending Ploy, Columbus Disp., June 24, 2000, at 1G. Bibliography: at 1G -------------------------------------------------------------------------------- Topic: *Consumers* Date of Elert: May 19, 2000 Elert title: Legal Counsel for the Elderly Sues Ameriquest Mortgage on Behalf of Two Elderly Home Owners, Alleging Deceptive Lending Practices Article title: Email Author: Christine Phillip, Legal Counsel for the Elderly Source date: May 15, 2000 -------------------------------------------------------------------------------- Legal Counsel for the Elderly (LCE) of Washington D.C. has filed suit against Ameriquest Mortgage on behalf of two elderly homeowners, alleging that Ameriquest misled the borrowers on the terms of their loan, violated state and federal laws calling for lenders to disclose loan terms, and failed to give the borrowers adequate time to consider canceling the loan. Plaintiffs William Palmore, 72, and his wife Katherine Murray, 79, believed they were borrowing $10,000 for repairs on their home of 24 years. The actual loan totaled more than $112,000. LCE attorney Jim Sugarman says that LCE receives at least 15 complaints monthly from senior citizens in danger of losing their homes. Christine Phillip, Legal Counsel for the Elderly, email correspondence, May 15, 2000.

Topic: *Consumers* Date of Elert: October 28, 2005 Elert title: Texas Homeowners, Represented by Texas RioGrande Legal Aid, Win Protection From Predatory and Sub-Prime Lenders Article title: Ruling May Modify Home Equity Loans; Judge Says Texas Has Let Lenders Charge Higher Fees Than Constitution Allows; No Immediate Effect Seen Author: Robert Elder Source: Austin American Statesman (TX) Source date: October 21, 2005 -------------------------------------------------------------------------------- A Texas state court judge has warned the Texas State Finance Commission that the state constitution bars sub-prime lenders from charging homeowners fees that exceed three percent of the loan amount. A number of homeowners, represented by LSC grantee Texas RioGrande Legal Aid, filed a lawsuit against the commission last year after it decided to allow sub-prime lenders to charge one point -- the equivalent of one percent of the loan amount -- each time they perform any service, including originating, evaluating, and maintaining the loan. In a letter to the commission, the judge explained that the commission's interpretation was unacceptable because it would allow lenders to charge borrowers a fee for any service. The up-front fees charged by sub-prime lenders like the Ameriquest Mortgage Company, which lend to homeowners with less than perfect credit, add thousands of dollars to the cost of loans. One plaintiff paid more than $10,000 in fees to take out a $58,000 loan, or nearly 20 percent of the loan amount. If the judge's decision is upheld, loan companies may raise interest rates on formerly sub-prime loans to compensate for the lost fee revenue. Nelson Mock, an attorney with Texas RioGrande Legal Aid, says, The language of the constitution is clear. These weren't interpretations; they were new rules. Robert Elder, Ruling May Modify Home Equity Loans; Judge Says Texas Has Let Lenders Charge Higher Fees Than Constitution Allows; No Immediate Effect Seen, Austin American Statesman, Oct. 21, 2005, at C1. Topic: *Consumers* Date of Elert: June 30, 2000 Elert title: LSC-Funded Legal Aid Society of Columbus Attorney Represents Predatory Lending Victim, Prevents Foreclosure on Her Home Article title: Woman Fell Prey to Lending Ploy Author: Kathy Lynn Gray Source: Columbus Dispatch Source date: June 24, 2000 -------------------------------------------------------------------------------- LSC-funded Legal Aid Society of Columbus (Oh.) attorney Pamela Simmons represents 65-year-old Betty Lacey, claiming that she has been the victim of a predatory lending scheme. Lacey alleges that she refinanced her home through a mortgage with Long Beach Mortgage Company that included deceptively high monthly mortgage payments, high interest rates, and high processing fees. When she missed a monthly payment, Long Beach foreclosed on her home. In order to help Lacey keep her home, Simmons reached a settlement with Ameriquest, the lender who had taken over Long Beach's retail loan business. Simmons was also able to find Lacey another loan. During her investigation of Lacey's case, Simmons discovered had that Long Beach's practices were also the subject of a price-discrimination settlement with the U.S. Justice Department in 1996. (Lacey's loans had occurred outside of the dates of the settlement period.) Kathy Lynn Gray, Woman Fell Prey to Lending Ploy, Columbus Disp., June 24, 2000, at 1G. Bibliography: at 1G -------------------------------------------------------------------------------- Topic: *Consumers* Date of Elert: May 19, 2000 Elert title: Legal Counsel for the Elderly Sues Ameriquest Mortgage on Behalf of Two Elderly Home Owners, Alleging Deceptive Lending Practices Article title: Email Author: Christine Phillip, Legal Counsel for the Elderly Source date: May 15, 2000 -------------------------------------------------------------------------------- Legal Counsel for the Elderly (LCE) of Washington D.C. has filed suit against Ameriquest Mortgage on behalf of two elderly homeowners, alleging that Ameriquest misled the borrowers on the terms of their loan, violated state and federal laws calling for lenders to disclose loan terms, and failed to give the borrowers adequate time to consider canceling the loan. Plaintiffs William Palmore, 72, and his wife Katherine Murray, 79, believed they were borrowing $10,000 for repairs on their home of 24 years. The actual loan totaled more than $112,000. LCE attorney Jim Sugarman says that LCE receives at least 15 complaints monthly from senior citizens in danger of losing their homes. Christine Phillip, Legal Counsel for the Elderly, email correspondence, May 15, 2000.

Topic: *Consumers* Date of Elert: October 28, 2005 Elert title: Texas Homeowners, Represented by Texas RioGrande Legal Aid, Win Protection From Predatory and Sub-Prime Lenders Article title: Ruling May Modify Home Equity Loans; Judge Says Texas Has Let Lenders Charge Higher Fees Than Constitution Allows; No Immediate Effect Seen Author: Robert Elder Source: Austin American Statesman (TX) Source date: October 21, 2005 -------------------------------------------------------------------------------- A Texas state court judge has warned the Texas State Finance Commission that the state constitution bars sub-prime lenders from charging homeowners fees that exceed three percent of the loan amount. A number of homeowners, represented by LSC grantee Texas RioGrande Legal Aid, filed a lawsuit against the commission last year after it decided to allow sub-prime lenders to charge one point -- the equivalent of one percent of the loan amount -- each time they perform any service, including originating, evaluating, and maintaining the loan. In a letter to the commission, the judge explained that the commission's interpretation was unacceptable because it would allow lenders to charge borrowers a fee for any service. The up-front fees charged by sub-prime lenders like the Ameriquest Mortgage Company, which lend to homeowners with less than perfect credit, add thousands of dollars to the cost of loans. One plaintiff paid more than $10,000 in fees to take out a $58,000 loan, or nearly 20 percent of the loan amount. If the judge's decision is upheld, loan companies may raise interest rates on formerly sub-prime loans to compensate for the lost fee revenue. Nelson Mock, an attorney with Texas RioGrande Legal Aid, says, The language of the constitution is clear. These weren't interpretations; they were new rules. Robert Elder, Ruling May Modify Home Equity Loans; Judge Says Texas Has Let Lenders Charge Higher Fees Than Constitution Allows; No Immediate Effect Seen, Austin American Statesman, Oct. 21, 2005, at C1. Topic: *Consumers* Date of Elert: June 30, 2000 Elert title: LSC-Funded Legal Aid Society of Columbus Attorney Represents Predatory Lending Victim, Prevents Foreclosure on Her Home Article title: Woman Fell Prey to Lending Ploy Author: Kathy Lynn Gray Source: Columbus Dispatch Source date: June 24, 2000 -------------------------------------------------------------------------------- LSC-funded Legal Aid Society of Columbus (Oh.) attorney Pamela Simmons represents 65-year-old Betty Lacey, claiming that she has been the victim of a predatory lending scheme. Lacey alleges that she refinanced her home through a mortgage with Long Beach Mortgage Company that included deceptively high monthly mortgage payments, high interest rates, and high processing fees. When she missed a monthly payment, Long Beach foreclosed on her home. In order to help Lacey keep her home, Simmons reached a settlement with Ameriquest, the lender who had taken over Long Beach's retail loan business. Simmons was also able to find Lacey another loan. During her investigation of Lacey's case, Simmons discovered had that Long Beach's practices were also the subject of a price-discrimination settlement with the U.S. Justice Department in 1996. (Lacey's loans had occurred outside of the dates of the settlement period.) Kathy Lynn Gray, Woman Fell Prey to Lending Ploy, Columbus Disp., June 24, 2000, at 1G. Bibliography: at 1G -------------------------------------------------------------------------------- Topic: *Consumers* Date of Elert: May 19, 2000 Elert title: Legal Counsel for the Elderly Sues Ameriquest Mortgage on Behalf of Two Elderly Home Owners, Alleging Deceptive Lending Practices Article title: Email Author: Christine Phillip, Legal Counsel for the Elderly Source date: May 15, 2000 -------------------------------------------------------------------------------- Legal Counsel for the Elderly (LCE) of Washington D.C. has filed suit against Ameriquest Mortgage on behalf of two elderly homeowners, alleging that Ameriquest misled the borrowers on the terms of their loan, violated state and federal laws calling for lenders to disclose loan terms, and failed to give the borrowers adequate time to consider canceling the loan. Plaintiffs William Palmore, 72, and his wife Katherine Murray, 79, believed they were borrowing $10,000 for repairs on their home of 24 years. The actual loan totaled more than $112,000. LCE attorney Jim Sugarman says that LCE receives at least 15 complaints monthly from senior citizens in danger of losing their homes. Christine Phillip, Legal Counsel for the Elderly, email correspondence, May 15, 2000.

Topic: *Consumers* Date of Elert: October 28, 2005 Elert title: Texas Homeowners, Represented by Texas RioGrande Legal Aid, Win Protection From Predatory and Sub-Prime Lenders Article title: Ruling May Modify Home Equity Loans; Judge Says Texas Has Let Lenders Charge Higher Fees Than Constitution Allows; No Immediate Effect Seen Author: Robert Elder Source: Austin American Statesman (TX) Source date: October 21, 2005 -------------------------------------------------------------------------------- A Texas state court judge has warned the Texas State Finance Commission that the state constitution bars sub-prime lenders from charging homeowners fees that exceed three percent of the loan amount. A number of homeowners, represented by LSC grantee Texas RioGrande Legal Aid, filed a lawsuit against the commission last year after it decided to allow sub-prime lenders to charge one point -- the equivalent of one percent of the loan amount -- each time they perform any service, including originating, evaluating, and maintaining the loan. In a letter to the commission, the judge explained that the commission's interpretation was unacceptable because it would allow lenders to charge borrowers a fee for any service. The up-front fees charged by sub-prime lenders like the Ameriquest Mortgage Company, which lend to homeowners with less than perfect credit, add thousands of dollars to the cost of loans. One plaintiff paid more than $10,000 in fees to take out a $58,000 loan, or nearly 20 percent of the loan amount. If the judge's decision is upheld, loan companies may raise interest rates on formerly sub-prime loans to compensate for the lost fee revenue. Nelson Mock, an attorney with Texas RioGrande Legal Aid, says, The language of the constitution is clear. These weren't interpretations; they were new rules. Robert Elder, Ruling May Modify Home Equity Loans; Judge Says Texas Has Let Lenders Charge Higher Fees Than Constitution Allows; No Immediate Effect Seen, Austin American Statesman, Oct. 21, 2005, at C1. Topic: *Consumers* Date of Elert: June 30, 2000 Elert title: LSC-Funded Legal Aid Society of Columbus Attorney Represents Predatory Lending Victim, Prevents Foreclosure on Her Home Article title: Woman Fell Prey to Lending Ploy Author: Kathy Lynn Gray Source: Columbus Dispatch Source date: June 24, 2000 -------------------------------------------------------------------------------- LSC-funded Legal Aid Society of Columbus (Oh.) attorney Pamela Simmons represents 65-year-old Betty Lacey, claiming that she has been the victim of a predatory lending scheme. Lacey alleges that she refinanced her home through a mortgage with Long Beach Mortgage Company that included deceptively high monthly mortgage payments, high interest rates, and high processing fees. When she missed a monthly payment, Long Beach foreclosed on her home. In order to help Lacey keep her home, Simmons reached a settlement with Ameriquest, the lender who had taken over Long Beach's retail loan business. Simmons was also able to find Lacey another loan. During her investigation of Lacey's case, Simmons discovered had that Long Beach's practices were also the subject of a price-discrimination settlement with the U.S. Justice Department in 1996. (Lacey's loans had occurred outside of the dates of the settlement period.) Kathy Lynn Gray, Woman Fell Prey to Lending Ploy, Columbus Disp., June 24, 2000, at 1G. Bibliography: at 1G -------------------------------------------------------------------------------- Topic: *Consumers* Date of Elert: May 19, 2000 Elert title: Legal Counsel for the Elderly Sues Ameriquest Mortgage on Behalf of Two Elderly Home Owners, Alleging Deceptive Lending Practices Article title: Email Author: Christine Phillip, Legal Counsel for the Elderly Source date: May 15, 2000 -------------------------------------------------------------------------------- Legal Counsel for the Elderly (LCE) of Washington D.C. has filed suit against Ameriquest Mortgage on behalf of two elderly homeowners, alleging that Ameriquest misled the borrowers on the terms of their loan, violated state and federal laws calling for lenders to disclose loan terms, and failed to give the borrowers adequate time to consider canceling the loan. Plaintiffs William Palmore, 72, and his wife Katherine Murray, 79, believed they were borrowing $10,000 for repairs on their home of 24 years. The actual loan totaled more than $112,000. LCE attorney Jim Sugarman says that LCE receives at least 15 complaints monthly from senior citizens in danger of losing their homes. Christine Phillip, Legal Counsel for the Elderly, email correspondence, May 15, 2000.

Topics: *Consumers*, *Housing*, LEGAL SERVICES ACTIVITIES AND ACHIEVEMENTS Date of Elert: November 4, 2005 Elert title: Fair Housing Law Violations Rampant in Four Maine Cities, Pine Tree Legal Assistance Study Reveals Article title: Test Finds Frequent Housing Discrimination; Landlords Showed Bias to Potential Tenants With Foreign Accents, Disabilities, Children, and Rent Vouchers Author: Gregory Kesich Source: Portland Press Herald Source date: October 31, 2005 In Maine, illegal discrimination is rampant against potential tenants who speak with foreign accents, live with disabilities, have children, or pay with federal rent vouchers, a new report released by LSC grantee Pine Tree Legal Assistance shows. Nearly one in two landlords in Augusta, Lewiston, Portland, and South Portland engaged in discrimination in violation of state and federal fair housing laws. Testers called or met with 72 landlords, and the results were staggering. Seven of 19 landlords refused to rent to families with children; potential tenants with accents never received return phone calls from landlords after leaving repeated messages, while potential tenants with no foreign accents were called back after leaving only one message; and three of 16 landlords discriminated in some form against potential tenants with disabilities. The study was financed with part of a $220,000 grant from the federal Department of Housing and Urban Development. Pine Tree also uses the grant to fund its fair housing project. Patricia Ender, Pine Tree's fair housing coordinator, says, We were surprised at the high degree of familial status and other types of discrimination that the study revealed. The study dug below the surface of discrimination in Maine, and now we want to change the attitudes and behaviors of the landlords who do discriminate throughout the state. Gregory Kesich, Test Finds Frequent Housing Discrimination; Landlords Showed Bias to Potential Tenants With Foreign Accents, Disabilities, Children, and Rent Vouchers, Portland Press Herald, Oct. 31, 2005, at B1; also based on original reporting by Brennan Center staff. Topic: *Consumers* Date of Elert: October 28, 2005 Elert title: Texas Homeowners, Represented by Texas RioGrande Legal Aid, Win Protection From Predatory and Sub-Prime Lenders Article title: Ruling May Modify Home Equity Loans; Judge Says Texas Has Let Lenders Charge Higher Fees Than Constitution Allows; No Immediate Effect Seen Author: Robert Elder Source: Austin American Statesman (TX) Source date: October 21, 2005 -------------------------------------------------------------------------------- A Texas state court judge has warned the Texas State Finance Commission that the state constitution bars sub-prime lenders from charging homeowners fees that exceed three percent of the loan amount. A number of homeowners, represented by LSC grantee Texas RioGrande Legal Aid, filed a lawsuit against the commission last year after it decided to allow sub-prime lenders to charge one point -- the equivalent of one percent of the loan amount -- each time they perform any service, including originating, evaluating, and maintaining the loan. In a letter to the commission, the judge explained that the commission's interpretation was unacceptable because it would allow lenders to charge borrowers a fee for any service. The up-front fees charged by sub-prime lenders like the Ameriquest Mortgage Company, which lend to homeowners with less than perfect credit, add thousands of dollars to the cost of loans. One plaintiff paid more than $10,000 in fees to take out a $58,000 loan, or nearly 20 percent of the loan amount. If the judge's decision is upheld, loan companies may raise interest rates on formerly sub-prime loans to compensate for the lost fee revenue. Nelson Mock, an attorney with Texas RioGrande Legal Aid, says, The language of the constitution is clear. These weren't interpretations; they were new rules. Robert Elder, Ruling May Modify Home Equity Loans; Judge Says Texas Has Let Lenders Charge Higher Fees Than Constitution Allows; No Immediate Effect Seen, Austin American Statesman, Oct. 21, 2005, at C1. Topics: *Consumers*, *Housing* Date of Elert: August 19, 2005 Elert title: Omaha Predatory Lending Victims, Represented by Nebraska Appleseed and Creighton Legal Clinic, Vindicated by State Supreme Court Article title: Consumer Victory in Omaha Predatory Lending Case: 10 Families Win Back Their Homes Sources: News Release: Nebraska Appleseed Center for Law in the Public Interest/Eicher v. Mid-America Financial Investment Corporation -------------------------------------------------------------------------------- The Nebraska Supreme Court has ruled in favor of 10 predatory lending victims who lost their homes and their equity through a scheme perpetrated by the Mid-America Financial Investment Corporation and two individuals acting as representatives of the Omaha-based company. The plaintiffs, represented by Nebraska Appleseed, Creighton Legal Clinic, and a private firm, claim that, while their homes were in foreclosure, two representatives of Mid-America induced them to sign loan contracts that, unbeknownst to the plaintiffs, contained terms enabling Mid-America to obtain title to their homes. In a judgment issued on August 12, 2005, the Supreme Court rejected each of the defendants' claims and upheld the Douglas County District Court's decision awarding the plaintiffs relief in the form of rescission, damages, and attorneys fees. The Supreme Court also remanded for decision the case of one victim that the lower court had dismissed and also directed the lower court to award damages to another victim. Milo Mumgaard, Nebraska Appleseed's executive director, celebrated the decision, saying, It's very unusual for people facing these kinds of predatory lending practices to find a way to fight back and win. Danielle Nantkes, a staff attorney with Appleseed, adds, Hopefully this case -- one of the largest consumer rights cases to go before the state Supreme Court -- will send ripples through the predatory lending industry and make consumers more aware of their rights. Nebraska Appleseed Center for Law in the Public Interest, Press Release: Consumer Victory in Omaha Predatory Lending Case: 10 Families Win Back Their Homes, August 12, 2005; Eicher v. Mid-America Financial Investment Corporation, Nos. S-03-1257, S-04-1184 (Neb. Sup. Ct. Aug. 12, 2005); also based on original reporting by Brennan Center staff. Topics: *Consumers*, *Housing* Date of Elert: August 12, 2005 Elert title: South Brooklyn Legal Services Joins 17 Other Groups in Amicus Curiae Brief Supporting NY Attorney General's Mortgage Lending Civil Rights Case Article title: NCRC Files Friend of the Court Brief for Spitzer's Civil Rights Fight Sources: News Release: National Community Reinvestment Coalition/The Clearing House Association v. State of New York -------------------------------------------------------------------------------- The Foreclosure Prevention Project of LSC-funded South Brooklyn Legal Services and a host of other organizations have joined the National Community Reinvestment Coalition in filing an amicus brief with the U.S. District Court for the Southern District of New York in support of [New York State] Attorney General Spitzer's efforts to enforce fair lending laws. The federal Office of the Comptroller of the Currency (OCC), part of the U.S. Department of the Treasury, is seeking to enjoin Spitzer from carrying out fair lending enforcement activities, claiming that state government does not have the right to enforce fair lending laws against national banks and their subsidiaries. The amici, a mix of local and national organizations, cite statistics that show that lending discrimination remains a major problem throughout New York State. For example, while 31 percent of refinance mortgages for upper-income black borrowers in the NY metropolitan area were subprime, only five percent of similar mortgages were subprime for upper-income white borrowers. Typically, subprime loans carry an interest rate between 0.1 and 0.6 percent higher and can add thousands of dollars to interest payments on mortgages. The amici claim that OCC exceeds the scope of its authority under the National Bank Act by preventing Spitzer from carrying out enforcement activities. They argue that the Fair Housing Amendments Act of 1988 strengthened the authority of private persons and federal agencies to enforce the Fair Housing Act of 1968 without diminishing the enforcement role that state and local agencies have under the original legislation. Underscoring the continued importance of enforcement, the amici add, Nearly forty years after the passage of the FHA . . . New York communities have a growing need for fair housing and fair lending enforcement to protect against discriminatory lending practices. South Brooklyn Legal Services, which runs a hotline to advise homeowners targeted by predatory or discriminatory lending practices, has prosecuted a number of housing discrimination cases with national banks or their subsidies as the named defendant. National Community Reinvestment Coalition, Press Release: NCRC Files Friend of the Court Brief for Spitzer's Civil Rights Fight; The Clearing House Association v. State of New York, No. 05 Civ. 5629 (SHS), Amicus Brief (S.D. NY Aug. 5, 2005) (on file with the Brennan Center); also based on original reporting by Brennan Center staff. Topic: *Consumers* Date of Elert: August 5, 2005 Elert title: Low-Income South Texas Residents, With Help From Texas RioGrande Legal Aid, Fight to Protect Drinking Water From Uranium Contamination Article title: Company Seeks New Permit to Draw Uranium From Aquifer Author: Lynn Brezosky Source: Associated Press Source date: August 1, 2005 -------------------------------------------------------------------------------- With the help of LSC grantee Texas RioGrande Legal Aid (TRLA) and South Texans Opposed to Pollution (STOP), low-income Texas residents are challenging a plan by Uranium Resources, Inc. (URI) to resume drawing radioactive material from an aquifer off the Lone Star State's coast. A state administrative judge is hearing the residents' arguments that URI has failed to take adequate measures to ensure that its mining activities do not contaminate water supplies. According to Enrique Valdivia, an attorney with TRLA's San Antonio office, the state should not allow URI to resume mining activities because deficiencies in its applications for permit renewal and production authorization pose serious potential threats to public health. The administrative judge will report his findings to the Texas Commission on Environmental Quality, which in turn will decide whether to approve URI's request for mining permits. URI is likely to appeal if the commission denies its permit renewal request. TRLA is likely to pursue legal action if the commission approves the request. The Garcias, a family opposed to renewed mining by URI, recently discovered that wells from which they have drawn drinking water for decades are contaminated with uranium, and they say that mining activities conducted by URI during the 1980s and 1990s are to blame. Valdivia emphasizes the importance of this case, saying, Dirty industries such as mines, landfills and smelters tend to locate in or near poor communities. To low income Texans, this case is about holding the line against companies like URI whose activities adversely affect overwhelmingly poor and Hispanic communities. Lynn Brezosky, Company Seeks New Permit to Draw Uranium From Aquifer, Associated Press, August 1, 2005, page reference unavailable; also based on original reporting by Brennan Center staff.