CLAYTON, Mo. – Countrywide Home Loans and St. Louis Financial Services cheat borrowers by failing to obtain the least expensive loans, a class-action lawsuit claims in St. Louis County Court. Plaintiffs claim Countrywide paid off St. Louis Financial to steer borrowers to it.
Named plaintiffs Randy and Angela Eberenz say St. Louis Financial, a mortgage broker, relies on par rate quotes or rate sheets issued by lenders. The par rate is the interest rate the lender offers a broker in which the lender will fund a borrower’s loan with no premiums or discounts to the broker.
The plaintiffs claim St. Louis Financial failed to obtain the least expensive loan possible for them, failed to disclose the par rate, and received compensation from Countrywide to steer the plaintiffs to that company.
The class consists of all Missourians who used St. Louis Financial in the past five years and who received loans with higher interest rates. The class seeks actual and punitive damages and is represented by Jonathan Andres.