AmeriSave Mortgage Class Action Lawsuit

Minneapolis, MN: If you are on the internet, you are bound to see multiple ads from Amerisave Mortgage. They are everywhere!  Thier advertisements always proclaim to have what would be the best interest rates in the market.

To any industry insider, there were, and continue to be, serious reservations about those claims, and the practices of the company. Assuming they really could offer those amazing interest rates, every other company offering mortgage loans – banks, brokers, and lenders, would all be out of business!

Finally, someone has taken them to task.  Mehri & Skalet, in conjunction with co-counsel, filed a class action lawsuit against Amerisave Mortgage Corporation for violating the Truth in Lending Act and state consumer protection statutes. Plaintiffs allege that Amerisave engaged in unfair and deceptive practices in the selling of residential mortgages.

The lawsuit alleges that Amerisave promises customers they can quickly obtain a “lock-in” of a low interest rate, and requires the customer to pay upfront fees in order to obtain it. The Amerisave class action complaint contends that the company does not actually provide the rate lock and/or does not approve the loan, for reasons unrelated to the credit-worthiness of the customer.

READ THE WHOLE STORY and visit www.amerisavemortgagesettlement.com if you feel you are a victim of Amerisave

Word of advice? Never use some out-state internet based lender. There is NOTHING they can offer that you can’t get from the local mortgage company down the street. Go visit the local lender for a face-to-face visist when getting the largest financial transaction of your life!


LendingTree Settles lawsuit over misrepresentations to consumers

Minneapolis, MN: Out-state online lender LendingTree must pay penalties to Charleston and Berkeley counties of South Carolina as part of a $3 million statewide settlement over misrepresenting “When banks compete, you win”.

Ninth Circuit Solicitor Scarlett Wilson announced Wednesday the settlement with LendingTree. In 2008, Solicitor Wilson and other solicitors from across the state sued LendingTree for failing to make the required disclosures for mortgage brokers who do business in South Carolina.

“LendingTree misrepresented to consumers their mortgage applications would be competitively shopped for the best rates,” said Solicitor Scarlett Wilson. “This led consumers to believe that LendingTree was working for them and not against them. Whether prosecuting criminals or bad corporate citizens, I’m going to use every option available to help protect the citizens of Charleston and Berkeley counties.”

As part of the settlement, Charlotte-based LendingTree will pay more than $400,000.00 in statutory penalties to both Charleston ($284,447) and Berkeley ($121,904) counties as part of a more than $3 million statewide agreement.

The South Carolina General Assembly passed laws protecting consumers that required mandatory disclosures from mortgage brokers. These laws require mortgage brokers to work for the borrower. At the time, LendingTree was using the slogan in their commercials “When banks compete, you win.‟

“Despite this settlement of the statutory fines, the actual borrowers, who are not known to us, may be able to pursue their own claims for damages against Lending Tree.” said Solicitor.

Contrary to what many home owner think, you really can NOT get anything better from some out-state online mortgage company than you can from your local Minnesota based mortgage lender.


CONSUMERS to PAY MORE for Home Loans!

CONSUMERS to PAY MORE for home loans because of NEW Federal Reserve Rule. The video shows a few examples of why the new rule will force every single person getting a home mortgage loan to pay MORE

Senators Rally to Delay LO Compensation Fed Rule

Two lawsuits have been filed to stop the rule which otherwise begins wrecking the housing and mortgage industry on April 1, 2011

Another great video from the boys at tbwsdailyshow.com

Senators ask Bernanke to STOP Federal Reserve and LO Comp

Fed Chairman BernankeSenators David Vitter (R-LA) and John Tester (D-MT) have written a bi-partisan letter to Chairman Bernanke of the Federal Reserve Board asking him to STOP the boards overreach of the TILA (Truth-in-Lending) act as it pertains to Loan Officer Compensation

The rule, set to start April 1, 2011 dramatically changes and overburdens the mortgage lending world, which could inflict harm to small business mortgage brokers, their loan officers and their entire staff.

Read The Letter To Bernanke

The letter says ““We remain concerned the Federal Reserve has not fully evaluated the impact of this rule on the housing market,” and ““We urge you to delay the implementation of the loan originator compensation rule so that these provisions can be better coordinated with forthcoming TILA regulations and the impacts of loan concentration can be more thoroughly studied.”

Two lawsuits were also filed this week asking for injunctions against the Federal Reserve over the rule. One by NAMB (the Nation Association of Mortgage Brokers), and the other by NAIHP (National Association of Independent Housing Professionals).

Federal Reserve Board files Motion to Consolidate NAIHP & NAMB Lawsuits

Federal Reserve Board files Motion to Consolidate NAIHP & NAMB Lawsuits

The Federal Reserve Board filed a Motion in U.S. District Court to consolidate lawsuits filed against them by the National Association of Independent Housing Professionals (NAIHP) and the National Association of Mortgage Brokers (NAMB).

READ the actual Lawsuits

This move was predictable by the Fed, according to Marc Savitt, NAIHP President.  The only reason NAMB was originally assigned a separate Judge, was because their legal counsel failed to acknowledge another related case (NAIHP), had previously been filed.

NAIHP has always believed a united front, would enable the industry to prevail in this matter.

Savitt indicated he is looking forward to working with NAMB to achieve success for consumers and the mortgage and housing industry, while NAMB’s attitude appears to be very negative towards NAIHP?

I’ve read both lawsuits. I’m no big shot lawyer. In my humble opinion, I like the NAIHP suit a LOT better?


NAMB files 2nd lawsuit this week against Federal Reserve

NAMB, the National Association of Mortgage Brokers today filed the second lawsuit this week against Federal Reserve Board over the new Lender Compensation rules set to begin April 1, 2011.

NAMB’s lawsuit seeks to obtain a temporary restraining order, and is using different arguments than the lawsuit filed by NAIHP on March 7th.

Lawsuit Filed Against Federal Reserve Over LO Compensation

The National Association of Independent Housing Professionals (NAIHP) Files Suit Against The Federal Reserve over Loan Originator Compensation Rule!!

The Federal Reserve Board has enacted rules which will severely limited consumer choice, increase closing costs, increase interest rates, destroy small lenders everywhere, bankrupt Loan Officers, all while increasing profits for banks.

The first of at least three lawsuits and restraining orders  have finally been filed to stop the madness and overstepping of government, which is set to to start April 1, 2011. Read more at http://naihp.org, and watch the video below from Frank and Brian of TBSWdailyshow.com

If you need a home loan in MN, better apply and lock before April 1, 2011

NAIHP Files Lawsuit Against Federal Reserve Board