Ohio AG Targets Two Mortgage Brokers In Separate Suits For Alleged Violations Of Predatory Lending Laws

From the Ohio Attorney General's Office:

• The Ohio Attorney General's Office and the Ohio Department of Commerce [last month] filed two complaints against mortgage brokers for violating Ohio’s predatory lending laws. The lawsuits were filed against Columbus companies Magellan Mortgage Corporation and Highland Banc, Inc. along with an individual loan officer and appraiser, accusing them of engaging in unfair, deceptive and unconscionable acts and practices. The complaints were filed in the Franklin County Court of Common Pleas.

• The lawsuits against Highland Banc and Magellan Mortgage raise many violations of the Ohio Homebuyers Protection Act, in addition to multiple violations of the Ohio Mortgage Broker Act (OMBA), and the Real Estate Settlement Procedures Act (RESPA). The suit against Magellan also alleges that the company violated the Truth in Lending Act (TILA). Some of the allegations in the suits were that a mortgage broker arranged loans with undisclosed fees and loans that resulted in no net tangible benefit for homeowners who had no reasonable ability to repay the loans.

For the press release, and to view the lawsuits,(1) see Ohio Attorney General Accuses Mortgage Brokers Of Predatory Lending Practices.

(1) State of Ohio v. Highland Banc, Inc., et al. begins at p.3 of press release. State of Ohio v. Magellan Mortgage Corporation, et al. begins at p. 23 of press release.