by Brian Mahany
Predatory lending is defined as unfair, deceptive or fraudulent practices during the loan origination process. We have expanded that view to also encompass loan modifications and refinances.
Most of our posts are geared to helping people navigate tough tax, fraud and mortgage foreclosure problems. Occasionally, however, we announce companies we are investigating in the hopes of gathering information. Recently we learned that Element Funding, a Georgia based mortgage lender, was offering to help people refinance their existing mortgages to lower their monthly payment.
If what we hear is true, Element charges excessive fees and offers modifications to people who recently just went through a refinancing. Excessive fees can eat up any savings the homeowner would otherwise receive through a slightly lower monthly payment, however. The same is true if a mortgage is refinanced several times in just a few years.
We have not formed any opinion about Element Funding but are interested in hearing from homeowners who refinanced or were approached to refinance by them or any other lender in which high fees were charged. Remember that even if the allegations are true, the problem may be isolated to one branch or even a single employee.
Many mortgage brokers routinely contact homeowners after a few years hoping to get them to refinance. If interest rates have dropped and the lender will refinance with little or no points, the deal may truly save the homeowner money. Charging excessive up front fees or suggesting multiple refi’s may just be a way of generating revenue for the lender with little or no savings for the borrower.
Element Funding does business in several Southern states including Georgia, Florida, Tennessee, North and South Carolina and Alabama.
If you feel that you were the victim of predatory lending or foreclosure, give us a call. Our fraud lawyers have helped people throughout the United States recover their hard earned money and obtain justice from unscrupulous lenders. For more information, contact attorney Anthony Dietz at or the author, attorney Brian Mahany at . Need to speak to someone right away? Call Brian at (direct). All inquiries are kept in strict confidence.
Mahany & Ertl – America’s Fraud Lawyers. Offices in Milwaukee, Wisconsin; Detroit, Michigan & Minneapolis, Minnesota. Services available in many jurisdictions.