Major banks stop offering mortgages for homes at former Hunter's Point Naval Shipyard

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It could be one of the last remaining affordable neighborhoods left in San Francisco, but now three major banks are putting the brakes on lending for these homes. (KGO-TV)

It could be one of the last remaining affordable neighborhoods left in San Francisco, but now three major banks are putting the brakes on lending for homes at the former Hunter's Point Naval Shipyard, over safety concerns.

Wells Fargo confirmed to ABC7 News that it stopped offering mortgages for homes adjacent to the shipyard where Cold War-era toxic contamination is still being cleaned up.

Chase and City told the Chronicle they have also stopped lending in the area due to unresolved questions about safety.

RELATED: Radioactive object found near Hunters Point homes despite years of 'clean-up'

"If it turns out there's a problem for environmental cleanup it's a big issue for me," said homeowner Leo Veyberg.

Veyberg has lived near the former Hunter's Point Naval Shipyard for eight years.

The pause in lending could complicate efforts by the city and developers to transform more than 500 acres of waterfront property. It could impact current shipyard homeowners and potential buyers.

"That's a bad thing, everybody knows the cost of living in San Francisco is very high," said homeowner Damin Huang.

Hunter's Point Naval Shipyard made headlines after allegations surfaced that fake soil samples were collected. Several families are part of a lawsuit against the developer Lennar and the contractor Tetra Tech for the impact on property values.

RELATED: EPA letter reveals Navy's downplay of radioactive soil in SF's Bayview

Lennar told ABC7 last October The lawsuit against them has no merit and will ultimately be dismissed.

ABC7 reached out to Lennar for comment on Sunday but did not receive a response.

The company told the Chronicle the home area in the shipyard is safe and that the company has sold and closed homes since August.
Related Topics:
societyaffordable housinghousinghousing marketbankmortgage ratesmortgagesloanseconomywells fargochase bankmoneybuilding a better bay areaHunters PointSan Francisco
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