CHARLESTON -- A Dry Branch man is suing seven companies and one individual after he claims they conspired to inflate the value of a home in order to induce him into purchasing the property.
Finance America, LLC; SafeCo Insurance Company of America; Global Mortgage Group, Inc.; Hanover Insurance Company; Great American Title, Inc.; Ocwen Loan Servicing, LLC; John Doe Trustee; and Jeffrey S. Moore were named as defendants in the suit.
John Matthew Ferrell was solicited by Global Mortgage Group and Moore provided an inflated appraisal of the property to enable the lender to originate the loan, according to a complaint filed March 31 in Kanawha Circuit Court.
In December 2009, Ferrell claims he was informed that the market value of his home in September 2003 was $25,100.
Ferrell claims the defendants have engaged in a pattern of predatory lending practices to make unfair loans based upon fraudulent appraisals in order to transfer the home equity form borrowers to the defendants.
Ferrell is seeking actual damages and civil penalties of $4,400 for each violation. He is being represented by Daniel F. Hedges and Bren J. Pomponio.
The case has been assigned to Circuit Judge James C. Stucky.
Kanawha Circuit Court case number: 10-C-620