Couple sues GMAC Mortgage for predatory lending

HUNTINGTON -- A Huntington woman and her husband are suing GMAC Mortgage after she claims it misrepresented her mother's income in a home loan and then tried to take her home.

Title First Agency and Title First Agency W.Va. were also named as defendants in the suit.

In 2007, Lyndol Curry agreed to purchase a home in Huntington and was referred to GMAC for financing, according to a complaint filed April 7 in Cabell Circuit Court.

Melinda Hopkins, Curry's daughter, claims GMAC's loan officer prepared the purchase and loan in Curry's name, despite the fact that they home was purchased and lived in by her, Harry Hopkins and Curry.

The loan officer wildly inflated Curry's income in connection with the origination of the loan, but the Hopkins' and Curry were unaware of the inflated income, according to the suit.

Melinda Hopkins claims shortly after the closing, she and her husband realized they were not included on the deed to the home as intended, so they had Title First prepare a deed in which Curry deeded the home to herself and the Hopkins' as joint owners.

On Nov. 4, 2009, Curry died, according to the suit and after her death, the Hopkins' contacted GMAC to make arrangements to bring the loan current.

The Hopkins' claim GMAC rejected their payment in November 2009 and directed them to submit documentation to process a loan modification, which they did. They claim they followed up with GMAC on several occasions, but GMAC refused to inform them of a decision on their application for assistance.

In February 2010, Title First filed a new Deed of Trust in which it struck through Melinda Hopkins' name, according to the suit.

The Hopkins' claim the defendants engaged in predatory lending practices to make illegal loans in order to transfer the home equity from homeowners to the defendant.

The Hopkins' are seeking actual and punitive damages. They are being represented by Bren J. Pomponio and Daniel F. Hedges.

The case has been assigned to Circuit Judge David M. Pancake.

Cabell Circuit Court case number: 11-C-192