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Overview
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Date Filed | Link to Story |
| Aliyah Associates LLC | Federal Trade Commission | na | na | A settlement by two payday loan lead generation companies with the Federal Trade Commission could have implications for mortgage lead generators. Both advertised loan costs and repayment periods without disclosing annual percentage rates, in violation of the Truth in Lending Act and Regulation Z, the FTC said in a statement. | na | FTC File No. 072-3206 | na | www.mortgagedaily.com/Leads071008.asp |
| Alpha Mortgage USA, Inc. and American Home Mortgage Servicing, Inc. | Nanette Lewis | U.S. District Court for the Southern District of Texas | na | A Texas woman has filed a lawsuit against a mortgage broker and loan servicer claiming she was targeted for nearly 10 percent in fees because she is black. She seeks to have the mortgage invalidated and her fees refunded. The Complaint alleges violations of HOEPA, TILA, ECOA, and FHA. | Nanette Lewis, Plaintiff, v. Alpha Mortgage USA Inc. and American Home Mortgage Servicing Inc., Defendant | 4:08-mc-00428 | Aug. 25, 2008 | www.mortgagedaily.com/LawsuitAmericanHomeAlpha090408.asp |
| Chevy Chase Bank | Bryan and Susan Andrews | U.S. Court of Appeals for the Seventh Circuit; U.S. District Court for the Eastern District of Wisconsin | na | A 2007 class action certification against Chevy Chase Bank, FSB, was reversed last week by a federal appeals court. The case, which centered around inadequate disclosures on option adjustable-rate mortgages that had one-month teaser rates, would have potentially had the bank rescinding thousands of loans. | Andrews v. Chevy Chase Bank | 07-1326 (7th Cir.); 05-C-454 (E.D. Wis.). | na | www.mortgagedaily.com/LawsuitChevyChase093008.asp |
| Countrywide Financial Corporation, Countrywide Home Loans Inc., and Countrywide Home Loans Servicing LP | State of Connecticut, Attorney General and Commissioner of Banking | Superior Court, Judicial District of Hartford | Civil penalties of up to $100,000 per violation, up to $5,000 per violation of state consumer protection laws, restitution for the borrowers and give back ill-gotten gains. | The Connecticut Attorney General alleges overcharging, mortgage fraud and poor underwriting by Countrywide. | State of Connecticut v. Countrywide Financial Corp., et al. | na | July 28, 2008 | www.mortgagedaily.com/LawsuitCountrywideCt080608.asp |
| Direct Leadsource, Charles A. Ruppersberger IV, Golden Apple Mortgage, Foote’s Inc., New Equity LLC, and Justin Harford | Pennsylvania Attorney General Tom Corbett | Commonwealth Court, Harrisburg, PA | na | Direct Leadsource and its Baltimore owner, Charles A. Ruppersberger IV, were sued by Pennsylvania Attorney General Tom Corbett for alleged violations of Pennsylvania’s Do-Not-Call law and other statutes. Also sued was Golden Apple Mortgage, Foote’s Inc. and New Equity LLC, as well as the State College, Penn., owner of the entities, Justin Harford | na | na | na | www.mortgagedaily.com/Leads082708.asp |
| Domestic Bank, Intervale Mortgage Corp. | Office of Thrift Supervision | na | $1.8 million | The Office of Thrift Supervision issued a Cease-and-Desist order and an Order of Assessment of a Civil Money Penalty against Domestic Bank and its mortgage lending subsidiary Intervale Mortgage Corp. | “In the Matter of Domestic Bank, Cranston, Rhode Island, (OTS No. 13964) and its Subsidiaries, including Intervale Mortgage Corporation, Cranston, Rhode Island | Order No.: NE-08-07 and Order No. NE-08-08 | June 30, 2008 | www.mortgagedaily.com/FineDomesticBank071508.asp |
| EMC Mortgage Corp. and Bear Stearns | Federal Trade Commission | U.S. District Court for the Eastern District of Texas | $28 million | The Federal Trade Commission announced settlement with Bear Stearns — which was acquired by JPMorgan Chase & Co. in May — and subsidiary EMC Mortgage Corp. Bear Stearns and EMC were charged with violating the FTC Act by misrepresenting amounts owed by borrowers and collecting unauthorized fees including late fees, property inspection fees and loan modification fees. Violations of the FDCPA, FCRA, and TILA were also alleged. | Federal Trade Commission v. EMC Mortgage Corporation, et al. | 4:08-CV-338 | na | www.mortgagedaily.com/EmcFtcSettlement090908.asp |
| Fremont Investment & Loan, Fremont General Corporation, Litton Loan Servicing LP | Kenter E. Lacet | U.S. District Court for the District of Massachusetts; Suffolk Superior Court | na | A Massachusetts borrower claims that although he had insurance on his property, his servicer tacked on its own policy then proceeded to foreclose on him when he didn’t pay the premium. The servicer is accused of compliance violations and attempting to extract endless fees and equity. | Lacet v. Fremont Investment & Loan, et al. | 1:08-cv-11611 (D. Mass.); 08-4090-H (Suffolk Sup.) | na | www.mortgagedaily.com/LawsuitLitton092608.asp |
| GRP Financial Services Corp., GRP Loan, LLC, and IndyMac Financial Services | Frank Stoffels and Karen Stoffels | U.S. District Court for the District of Nevada | na | A Nevada couple alleges that they are the victims of fraudulent lending practices by IndyMac Financial Services and a scheme to shield IndyMac from liability by transferring the fraudulent mortgage to a knowing purchaser to foreclose on the loan. Lawyers in the case allege compliance violations and seek class action certification. | Stoffels v. GRP Financial Services Corp., et al. | 08-cv-468 | na | www.mortgagedaily.com/WbskLawsuitIndymac092408.asp |
| Highland Banc Inc. and Eric B. Johnson | Attorney General, State of Ohio and Ohio Department of Commerce | Court of Common Pleas, Franklin County | na | The defendants are accused of failing to provide accurate disclosures as required by the Ohio Consumer Sales Practices Act, Real Estate Settlement Procedures Act and Ohio Mortgage Broker Act. Highland, based in Columbus, and Johnson are also accused of violating the Ohio Homebuyers Protection Act, which was enacted last year. | Ohio v. Highland Banc. Inc., et al. | Case No. 08CVH8 11343 | Aug. 7, 2008 | www.mortgagedaily.com/LawsuitsOhioAg080808.asp |
| IndyMac Bancorp, Inc and IndyMac Bank, F.S.B. | Virgen Cedeno | U.S. District Court for the Southern District of New York | na | A recent ruling by a federal judge in Manhattan dismissed class-wide claims against failed IndyMac Bancorp, declining to hold it liable for alleged inflated appraisals. Violations of the Real Estate Settlement Procedures Act and the Truth in Lending Act were alleged. | Cedeno v. IndyMac Bancorp, Inc., et al. | 06-CV-6438 | na | www.mortgagedaily.com/WbskLawsuitIndymac092208.asp |
| KB Home, Countrywide Financial Corp. and several of their wholly-owned subsidiaries. | Hugo Zaldana | U.S. District Court for the Northern District of California | A class-action lawsuit recently filed against Countrywide alleges a joint venture it operated with a major homebuilder was just a sham created to circumvent the Real Estate Settlement Procedures Act. | Hugo Zaldana v. KB Home, et al. | No. CV 08 3399 | July 2008 | www.mortgagedaily.com/LawsuitCountrywide072108.asp | |
| Linden Home Loans and its two owners, Christopher Opdyke and Mark Sullivan | Washington Department of Financial Institutions | na | $75,000 fine and costs of $4,000. | Linden Home Loans and its two owners entered into to a consent order with the state’s Department of Financial Institutions. While Linden allegedly advertised itself on television as the “home of the 1 percent mortgage” with no points and fees, the state claimed that its investigation found no borrowers actually received these terms. In addition, Linden was accused of failing to make required disclosures. | In the Matter of Determining Whether there has been a violation of Mortgage Broker Practices Act of Washington by: Linden Loans LLC, doing business as Linden Home Loans, and Christopher W. Opdyke and Mark S. Sullivan, as sole owners and members of Linden Loans LLC | No. C-07-366-08-CO01 | Dec. 14, 2007 | www.mortgagedaily.com/WashingtonFines080808.asp |
| Magellan Mortgage Corporation and Thomas Heflin | Attorney General, State of Ohio and Ohio Department of Commerce | Court of Common Pleas, Franklin County | na | Magellan is accused of providing estimated values on appraisal requests; failing to make required disclosures; violating the Truth in Lending Act; placing borrowers in loans they could not afford to repay; and churning borrowers by refinancing them even when there was no tangible benefit. Heflin charged appraisal fees that were substantially higher than his competitors. | Ohio v. Magellan Mortgage Corp., et al. | Case No. 08CVH8 11344 | Aug. 7, 2008 | www.mortgagedaily.com/LawsuitsOhioAg080808.asp |
| Paramount Equity Mortgage Inc.; Hayden D. Barnard; Mathew J. Dawson; and John J. Walker | Washington Department of Financial Institutions | na | $500,000 fine and nearly $10,000 in examination and investigation fees | The California-based mortgage company is accused of deceitful advertising, faulty disclosures and unlicensed originators. | na | No. C-07-405-08-SC01 | na | www.mortgagedaily.com/LicenseParamount072308.asp |
| Perry | United States of America | na | na | Financial institutions ignored red flags that led to identity theft. | United States v. Perry | na | na | www.mortgagedaily.com/Technology070808.asp |
| We Give Loans Inc. | Federal Trade Commission | na | na | A settlement by two payday loan lead generation companies with the Federal Trade Commission could have implications for mortgage lead generators. Both advertised loan costs and repayment periods without disclosing annual percentage rates, in violation of the Truth in Lending Act and Regulation Z, the FTC said in a statement. | na | FTC File No. 072-3205 | na | www.mortgagedaily.com/Leads071008.asp |
| Williams | United States of America | na | na | Financial institutions ignored red flags that led to identity theft. | United States v. Williams | na | na | www.mortgagedaily.com/Technology070808.asp |
