Quantcast

WEST VIRGINIA RECORD

Friday, March 29, 2024

Woman accuses Quicken Loans of predatory lending

HUNTINGTON -- A woman is suing Quicken Loans after she claims it participated in predatory lending practices.

Wells Fargo Bank and John Doe Holder were also named as defendants in the suit.

In 1995, Janet R. Robinson purchased her home and in 2003 she saw Quicken advertisements offering loans with low, affordable payments and contacted the defendant, according to a complaint filed March 2 in Cabell Circuit Court.

Robinson claims the defendant represented to her that it could save her money and her payment would be approximately $330 per month, which was lower than her current monthly payment.

Prior to closing, a representative of Quicken told Robinson that the payments were not fixed, but that they would not rise because interest rates had not increased in 20 years, according to the suit.

Robinson claims Quicken did not rely on an appraisal from a licensed appraiser when originating the loan and instead obtained an inflated valuation from an entity called RadianExpress.com, which stated that her home had a value of $84,350.

Unknown to Robinson, the actual market value of her home was approximately $33,500, according to the suit.

Robinson claims her monthly payment increased to more than $700, well over the monthly payments she had been making on her prior home loans, despite Quicken's promises that the loan would decrease her house payments.

The terms of the loan originated by the defendants unfairly favored the defendants in that the loan far exceeded the value of the home and the payments would likely increase about Robinson's ability to pay, this trapping her in the home with no ability to refinance or sell and making foreclosure a likelihood, according to the suit.

Robinson is seeking compensatory and punitive damages. She is being represented by Jennifer S. Wagner and Daniel F. Hedges.

The case has been assigned to Circuit Judge F. Jane Hustead.

Cabell Circuit Court case number: 12-C-137

ORGANIZATIONS IN THIS STORY

More News