CHARLESTON -- An Institute man is suing Select Portfolio Servicing and the Bank of New York Mellon after he claims they participated in predatory lending practices.
In 1994 Curtis Gene Davis purchased his home for $10,000, which was his first experience with home ownership, according to a complaint filed March 31 in Kanawha Circuit Court.
Davis claims he was solicited at the door of his home by the defendants for refinancing and that he was provided no preliminary disclosures prior to closing, nor were the terms of the transactions at issue discussed with him prior to the closing.
The loan closing was rushed and there was insufficient explanation of the documents, according to the suit.
Davis claims he "did not realize until much later that the loan he had been given contained exploitive terms."
The mortgage loan was for $73,000, and contained an "extremely exploding ARM at a very high rate," according to the suit.
Davis claims he began making his monthly payments until the point at which the interest rate reset on the primary mortgage loan and he began to struggle making timely payments.
During the course of its servicing of the mortgage loan, Select Portfolio Servicing assessed illegal default fees and conditioned Davis' right to cure default of the payment of illegal fees, according to the suit. The fees were assessed on more than 25 occasions.
Davis is seeking actual damages and civil penalties. He is being represented by Daniel F. Hedges.
The case has been assigned to Circuit Judge Charles E. King.
Kanawha Circuit Court case number: 11-C-526