MORTGAGE FRAUD
&
ELDER ABUSE


Filing Consumer Fraud Lawsuits on behalf of plaintiffs nationwide
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Mortgage Fraud Attorney

Investigating elder abuse and mortgage fraud cases

A $5 million class-action lawsuit against two mortgage companies has been filed, alleging that the lenders conspired to defraud thousands of elderly homeowners. The suit says Texas-based Champion Mortgage Co. illegally charged their elder clients for unnecessary home inspections. Mortgage fraud is nothing to be taking lightly.

Such inspections are usually limited by law to once a month, but the company used software to trigger “repeated, unreasonable, and unnecessary” inspections several times a week. The cost of the inspections were then automatically added to the outstanding loan amount, resulting in less equity in the houses. Michigan-based Celink, who was contracted for the inspections, is also named in the suit.

Joe Lyon is a highly-rated mortgage fraud lawyer experienced in investigating and settling fraud and elder abuse claims. 

Common Targets of Mortgage Companies

Victims of mortgage fraud are often those holding reverse mortgages. The reason the elderly are often targeted is because only people 62 or older are eligible for these loans. Reverse mortgages, once a rarity, are expected to increase in numbers as more baby boomers become eligible.

Also known as home-equity conversions, reverse mortgages allow older homeowners, often living on fixed incomes, to tap into the equity in their homes. Lenders, like Champion, pay the homeowner a monthly advance while they continue to live in the house.

Reverse mortgages are rising-debt loans, and interest is added to the loan’s principal each month. Therefore, the amount owed increases over time as the interest compounds.

If the residents fail to stay current with taxes or insurance, they can go into default and the mortgage company can foreclose on the house.

Mortgage Companies Sell Confusing Products

According to a report by the Consumer Financial Protection Bureau, many consumers are unaware that reverse mortgages are a loan with interest due. Many are also unaware that they can lose their homes if they default. The report, and many consumer complaints, show a large disconnect between consumer expectations and the way in which reverse mortgages actually function.

Consumers complain that lenders refuse to refinance their loans because there is insufficient remaining equity in their homes. Homeowners also report further issues with lenders that don’t keep adequate records. For lenders like Champion, the frequent inspection charges are a subtle way of skimming extra money. Because the mortgages have no monthly payments due, homeowners can easily miss seeing the additional fees.

Elder Abuse & Mortgage Fraud Claims

Both the Federal Bureau of Investigation (FBI) and the U.S. Department of Housing and Urban Development Office urge senior citizens to be vigilant when seeking reverse mortgage products.

According to Bureau statistics, reverse mortgages increased more than 1,300 percent since 1999, creating significant opportunities for fraudulent lenders.
Reverse mortgage scams can be created by unscrupulous professionals in a multitude of real estate and financial services, and aim to steal the equity of unsuspecting senior citizens.

In many reported scams, seniors are offered foreclosure or refinance assistance. Victims are frequently targeted through local churches, investment seminars, and other advertisements.

Mortgage Fraud Lawsuits

In addition to inspection abuses, fraudulent lenders have also deceived senior borrowers with the following:

•    Phony charges or inflated monthly payment amounts
•    Overdue balances and vague service fees
•    Withholding loan proceeds while forcing homeowners to make payments for the entire loan amount
•    Foreclosing on borrowers who are in compliance with loan terms
•    Failing to release liens on titles to borrowers’ homes after loans are paid in full

ABOUT THE LYON FIRM

Joseph Lyon has 17 years of experience representing individuals in complex litigation matters. He has represented individuals in every state against many of the largest companies in the world.

The Firm focuses on single-event civil cases and class actions involving corporate neglect & fraud, toxic exposure, product defects & recalls, medical malpractice, and invasion of privacy.

NO COST UNLESS WE WIN

The Firm offers contingency fees, advancing all costs of the litigation, and accepting the full financial risk, allowing our clients full access to the legal system while reducing the financial stress while they focus on their healthcare and financial needs.

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A Voice for Those who have suffered

Why are these cases important?

Without class actions, large corporate defendants would be able to cause small amounts of harm over a large group of individuals without any risk of monetary penalty.

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Your Right to Justice

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Filing Class Action lawsuits is a complex and serious legal course and can carry monetary sanctions if proper legal course is not followed. The Lyon Firm is dedicated to assisting injured plaintiffs work toward a financial solution to assist in compensating for medical expenses or other damages sustained.

We work with law firms across the country to provide the most resources possible and to build your case into a valuable settlement. The current legal environment is favorable for consumers involved in data breach class actions, deceptive marketing lawsuits, TCPA telemarketing claims, and financial negligence claims.

mortgage fraud lawsuits

Recent Class Action Cases

We work with law firms across the country to provide the most resources possible and to build your case into a valuable settlement. 

Data Breach & Privacy Lawsuits

Invasion of privacy law has been established to protect consumers and citizens of the United States. When companies are negligent and fail to protect consumer information, which can be used in malicious ways, victims can contact a class action attorney to represent them in class action data breach lawsuits. A number of privacy breach and data breach claims have been settled by The Lyon Firm and other consumer protection lawyers around the country.

Consumer Protection Class Action

Consumers have rights in the USA, and when companies do not provide a service they have promised, or hold up their end of a bargain, legal action may be necessary. Consumer protection attorneys work on your behalf to hold companies responsible for providing a fair and safe service.

The Lyon Firm has worked with law firms nationwide in consumer class actions involving deceptive marketing, false advertising, food mislabeling and misleading marketing claims.

TCPA Robocall Class Actions

TCPA lawsuits have become one of the most common kinds of legal claims. The TCPA Act provides privacy protection for consumers by restricting how companies and organizations can contact you by telephone. Robocall harassment and unfair debt collection has been a serious issue that has required lawsuits in order to keep telemarketing companies at bay.

If you have experienced telephone harassment by a bank, real estate company, hotel, political campaign or anyone else, you may have TCPA claim. The Lyon Firm works diligently to seek compensation for those harassed at their home or work.

Wage and Hour Lawsuits

Class action wage and hour lawsuits are always ongoing, as some employers fail to treat employees properly, and attempt to cut workers out of earned wages. Wage theft lawsuits can be valuable for a class of plaintiffs who believes their employer has cheated them out of overtime pay and other earned wages.

There have been several wage theft lawsuits and settlements that have compensated employees for the wages they have earned, as well as damages for emotional distress and punitive damages when an employer is negligent in treating workers in accordance to Ohio labor law.


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