Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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Sprenger + Lang, Mehri & Skalet Announce Class Action Lawsuit Against Homecomings Financial, LLC

2008-02-07 23:23:12 -

- Sprenger + Lang, PLLC Steven Sprenger, 202-772-1160 or Mehri & Skalet, PLLC Steve Skalet, 202-822-5100 The law firms of Mehri & Skalet and Sprenger + Lang today announced they have filed a multi-claim, nationwide class action lawsuit in the United States District Court for the District of Minnesota against Homecomings Financial, LLC. The complaint alleges that Homecomings, which is based in Minneapolis, MN, has engaged in a nationwide scheme of illegal, unfair, unlawful, and deceptive business practices that violate both federal and state laws in the servicing of home-secured loan transactions.

According to the complaint:

-- Homecomings is one of the nation's largest mortgage servicers. Homecomings services the mortgages of more than 800,000 households nationwide. Homecomings routinely tries to collect, and in fact does collect, improper fees and charges from homeowners, including charges for unnecessary and unauthorized property inspections, and unauthorized and excessive fees for using its electronic payment processing services.

-- Homecomings engages in the practice of "force-placing" hazard insurance, that is, purchasing insurance for the borrower's property and charging the borrower for it. In many cases, Homecomings force-places insurance even though the property is already insured. In addition, Homecomings fails to obtain insurance at competitive prices.

-- Homecomings assesses these improper fees, costs, and charges to maximize its profits, often putting homeowners into default status.. Then, it demands payment from the homeowners on the improper charges, collecting them from homeowners' monthly loan payments, loan payoffs, and even through foreclosure sales.

-- Homecomings treats borrowers as if they are in default even when they have complied with the terms of their mortgage agreements.

"With the state of today's economy and housing market, it's all people can do to pay their mortgages in the first place," said Steve Skalet of Mehri & Skalet, one of the attorneys for the homeowners. "The last thing people need is hurdles that keep them from making their mortgage payments, or, even worse, not getting credit for the payments they do make."

"The allegations made by our clients indicate a pattern of misconduct by Homecomings that is illegal, unfair, and very disturbing. No one ought to lose their house because of a mortgage company's misdeeds," added Steve Sprenger, an attorney for the homeowners with Sprenger + Lang, another law firm representing the homeowners.

The plaintiffs bringing the lawsuit are residents of California, Illinois, Michigan, Kentucky, and Florida. The lawsuit was filed on behalf of all persons nationwide whose home mortgages were serviced by Homecomings, and whose loans were improperly assessed late fees, or were wrongly assessed charges for force-placed insurance, unnecessary and unauthorized property inspections, and the use of Homecomings' electronic payment processing service.

More information about the case can be found on the following websites:, and


Mehri & Skalet, PLLC, based in Washington, D.C., is a private law firm dedicated to using the legal system to serve the public interest. The firm specializes in civil rights and consumer protection litigation that holds corporations accountable for unfair and deceptive commercial practices. The firm's attorneys have achieved precedent-setting settlements protecting employees from discrimination in the workplace, including landmark cases against Texaco and Coca-Cola, and consumer cases against a wide variety of companies, including Dell, Hewlett-Packard, Verizon and many others. In addition to its successes in litigation, Mehri & Skalet has successfully advocated for greater racial diversity among coaches in the National Football League, and for gender equity on Wall Street. More information is available on the firm's website,

Sprenger + Lang PLLC, with offices in Minneapolis and Washington, D.C., has obtained some of the country's largest gender, age, and race discrimination judgments on behalf of tens of thousands of discrimination victims. Sprenger & Lang has successfully represented classes of plaintiffs against companies such as Burlington Northern, CBS, C.H. Robinson, New York Life, Northwest Airlines, First Union, Amtrak and Ceridian Corporation. The firm is featured in the book Class Action, which discusses a gender discrimination class action lawsuit that the firm successfully prosecuted for over ten years and inspired the recent feature film North Country. More information is available on the firm's website,

Homeowners Allege Illegal Business Practices in Servicing
Home-Secured Loans


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This is good.  Defendant will try to settle out of court while admitting no wrongdoing, I suppose.

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