Banking Law
Fla. Law Firm Has Filed About 70 Fraud Suits Against Lenders
Posted Jul 10, 2008, 05:08 am CST
By Debra Cassens Weiss
Some borrowers who say their lenders hid the true terms of their onerous loans are suing for fraud. One law firm that is eager to help is the Affirmative Defense Group in Margate, Fla.
Lawyer Frank Ingrassia says the firm has filed about 70 such suits on behalf of borrowers like his client Denise Bennett, who thought she was taking out a fixed-rate mortgage when she refinanced her home, the Daily Business Review reports. When she later examined the fine print, she learned her monthly mortgage payment to Countrywide Home Loans is going to reset from $1,400 to $1,700.
Ingrassia says most of the plaintiffs represented by his firm were high-risk customers who took out subprime mortgages with adjustable rates. Besides alleging failure to explain the terms of the loans, the suits claim lenders exaggerated the incomes of customers so they could qualify for larger loans.
Countrywide also faces lawsuits filed by the states of Florida, Illinois and California.