North Carolina AG Settles Consumer Protection Lawsuit With Three Builders

In North Carolina, local media outlets are reporting that Charlotte-area builders Dixie Homes (Gastonia), and MCE Properties Inc. and Evans-Davis Inc., (both of Kings Mountain), have agreed to forgive nearly $2 million in second mortgages arranged by a broker accused of deceiving home buyers, according to the office of North Carolina Attorney General Roy Cooper.

A total of 66 second mortgage loans for homeowners in Gaston and Cleveland counties are being forgiven by the three companies and are part of a settlement agreement with the North Carolina AG's office and the Office of the Commissioner of Banks that resolve allegations that the companies violated state consumer protection laws that prohibit the use of unfair and deceptive business practices. The second mortgages were reportedly arranged by Hall Financial Services of Matthews, which, along with its owners, James Markham Hall and Sharese Hall, were accused of making unfair and illegal home loans to consumers in Gaston, Lincoln and Cleveland counties. One third of the 139 mortgage loans Hall Financial made are either in or near foreclosure. All three builders have agreed to cooperate in the ongoing investigation of Hall Financial. For more, see:

• Builders to forgive home loans (3 area firms agree to deal worth nearly $2 million, and will aid in probe of broker) (Charlotte Observer)
• Local builders to forgive $2M in loans (Charlotte Business Journal)
• North Carolina AG Press Release (6-4-07)
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