Federal Court Takes Jurisdiction Of Alleged Mortgage Investment Scam Class Action Suit

In Philadelphia, Pennsylvania, the Lancaster Intelligencer Journal (Lancaster Online) reports:

• Some homeowners who owe much more than they thought they did due to alleged mortgage broker fraud by OPFM Inc. lost one form of temporary relief Wednesday but gained another. A federal judge in Philadelphia Wednesday took charge of the case and tossed a temporary injunction that had shielded about 800 customers from mortgage debts discovered when OPFM filed for bankruptcy Sept. 18.

• Instead, a new agreement allows mortgage customers to pay 75 percent of the higher mortgage payments, or the original payment, whichever is higher, and mortgage companies promised not to foreclose if the payments are made.

• U.S. District Judge James T. Giles made the decision after taking jurisdiction of a class-action lawsuit filed Sept. 25 in Berks County court. The suit seeks to void mortgages of 25 lenders named in the suit. The mortgages were brokered by Personal Financial, allegedly without the knowledge of the customers, who thought they were signing on for lower mortgages.

For more, see Federal judge takes OPFM suit (Revises deal for homeowners who allege mortgage broker fraud).

See also, WGAL-TV Channel 8, which reports:

• Wednesday morning a federal judge in Philadelphia threw out a ruling that had temporarily protected homeowners who had been affected by the sudden closure of Personal Financial Management, a local mortgage company. The judge then directed attorneys representing homeowners and the mortgage companies to come up with an agreement that can be overseen by the federal court. The judge's decision supersedes a Berks County judge's ruling two weeks ago that had temporarily protected homeowners from being forced to make higher payments.

For more, see Judge Tells Homeowners, New Mortgage Holders To Work Together.

Go here and go here for other posts and links to earlier media reports on the Pennsylvania Ponzi scheme involving Wesley Snyder, OPFM, Image Masters.