It is no secret that our firm is investigating a claim that Freedom Mortgage defrauded military families and veterans. Although the Better Business Bureau gives the company an A- rating, the BBB stats tell a different story. Just 12% of the reviews are positive. 86% are negative. Go to ripoffreport.com or the CFPB website and the negative reviews will shock you.
In conducting our investigation, we came across a recent court case in New Jersey. A Bergen County Superior Court judge says the company violated the New Jersey Consumer Fraud Act.
70 Year Old Woman Brings Case Against Freedom Mortgage
Mamie Major sued Freedom after being charged $11,479 in fees to refinance her home. How much did she save by the refinance? Just $63 per month. At that rate, it would take Ms. Major over 15 years to recoup the additional costs.
Just six months after laying out $11,479 in refinance costs, Mamie defaulted on her mortgage. She claims that she spent so much money refinancing that she didn’t have enough to pay her mortgage.
Some folks are probably thinking that Ms. Major should have studied the closing documents more carefully. There is just one problem. She says that most of the transaction was handled by telephone. She didn’t even sign the loan application to the day of closing (which was held on her porch). Ditto for the remainder of the loan documents.
Judge Lowers the Boom on Freedom
Judge Gerald Escala evidently believed Mamie Major’s version of events. He found the New Jersey based Freedom Mortgage had violated the N.J. Consumer Fraud Act.
In ruling against the lender he said, “These facts then lead to the conclusion that the loan was granted in order to engender fees for the lender and not for the benefit of the borrower. The transaction has been demonstrated to be effectively one-sided, for the benefit of the lender.”
The court delayed the foreclosure, ordered Freedom to pay her $34,438 and attorney’s fees of $26,165.
MahanyLaw Investigating loandepot (Loan Depot) and Freedom Mortgage
The fraud recovery lawyers at MahanyLaw are currently investigating whether loandepot (Loan Depot) and Freedom Mortgage are writing predatory VA refi loans. Called an Interest Rate Reduction Refinancing Loan (“IRRRL”) or “Streamline”, these loans are exclusively available to veterans and active military.
We believe that both companies engage in schemes that generate massive fees for the lender but do little for the borrower. In one case we heard that a borrower saved just $18 in monthly mortgage payments while incurring thousands ofndollars of new debt.
If you have refinanced and believe the bank is simply trying to profit from the fees, call us. You may have a case.
Our firm doesn’t handle individual homeowner cases. Instead, we handle class action cases. That allows us to help hundreds or even thousands of homeowners.
For more information, please contact attorney Tim Granitz at or by telephone at (414) 258-2375. All inquiries are confidential. Even if you do not wish to participate in a lawsuit against your lender, we still wish to speak with you. We hope to save the homes of our veterans, older homeowners and working class families.
MahanyLaw – America’s Fraud Lawyers. We Sue Banks