ATLANTA (CN) – Homeowners Mortgage Enterprises bilked veterans who refinance home loans for fees that lenders are supposed to pay, a class action claims in Federal Court.
Lead plaintiff Anthony Canada claims Homeowners, through its closing attorneys, Morris Hardwick Schneider, hid fees, “such as legal fees,” within the loan form so that borrowers, rather than lenders, must pay them.
The fees are bundled into title search and title examination charges rather than appearing on a separate line as they should, the complaint states.
Veterans can refinance their homes through the Interest Rate Reduction Refinancing Loan, guaranteed by the Veterans Administration. But the VA will not guarantee refinancing if borrowers, rather than lenders, pay for attorney fees, the complaint states.
Canada says thousands of veterans across the country have paid these illegal fees.
The class is represented by Jason Crawford with Daughtery, Crawford & Fuller.