LOS ANGELES (CN) - A class action claims that IndyMac Bank and its successor, One West Bank Group, breached "Option ARM" mortgage contracts,and made principal balances increase,by applying payments to escrow accounts before principal and interest.
By violating the explicit terms of its contracts, the banks made the mortgage loans negatively amortize, increasing the principal balance, the class claims. They seek an injunction and damages for breach of contract, unjust enrichment, and violations of business and professional codes and consumer laws.
Their lead counsel is Richard Kellner with Kabateck Brown & Kellner.
It's the second class action against IndyMac and One West this week in L.A. Superior Court.
Here is the gist of the first complaint, as reported by Courthouse News on Thursday.
LOS ANGELES (CN) - Indymac Bank and its successor, OneWest Bank, defrauded homebuyers by promising to modify their mortgages, but "never at any time possessed a good faith intention to perform on these loan modification agreements," a class action claims in Superior Court. "Defendant sought only to induce homeowners into making further payments and defraud homeowners of their money."
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