Class Alleges Foreclosure Kickback Scheme

OAKLAND, CALIF. (CN) - First American Title pays co-defendant Quality Loan Service an illegal $150 kickback each time it uses its overpriced "Trustee Sale Guarantee" insurance for homebuyers trying to reinstate their loans after foreclosure, a class action claims in Alameda County Court.

Plaintiffs says Quality Loan Service pays First American Title up to $750 for each Trustee Sale Guarantee it buys from it. It claims the defendants' scheme results in homebuyers paying "as much as $400 more than they should be required to pay in order to save their homes from foreclosure."

Plaintiffs' lead counsel is Thomas Jenkins with Jenkins Mulligan & Gabriel of San Francisco.

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