Practice Areas

Consumer Rights

Kai H. Richter

Consumer Law Attorney
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Predatory Lending and Unfair Mortgage Servicing

Banks and mortgage servicers often use unfair and illegal tactics to take advantage of borrowers whose mortgages they control to increase their own profits. In many cases, borrowers feel that they have no options because they need to close on the loan to finance their home, or don’t want to risk their home to foreclosure.

Nichols Kaster understands that borrowers experiencing unfair and deceptive lending and mortgage servicing practices can wind up paying much more for their loans than other consumers, and often get trapped in cycles of debt from which they cannot emerge. Fortunately, there are many laws that protect consumers against abusive or illegal lending practices, and Nichols Kaster’s consumer law attorneys have the experience and resources to take on any defendant, no matter how large. Our experienced class action attorneys practice nationwide and have successfully taken on banks and mortgage servicers for predatory lending and unfair mortgage servicing practices. If you believe your rights may have been violated, please contact us to take action.

Nichols Kaster is currently investigating the following abusive lending practices:

  • Failing to provide a good faith estimate of loan charges (listing the interest rate and any fees that will be charged in connection with the loan);
  • Overcharges or illegal kickbacks in connection with title insurance, government recording fees, or services performed prior to the loan closing (appraisals, flood zone determinations, etc.);
  • Changing loan terms or credit terms without consent;
  • Reducing or suspending a home equity line of credit (HELOC) without good cause;
  • Miscalculation of interest;
  • Failing to apply payments to the loan as required (particularly when early payments are made on the loan);
  • Failing to remove private mortgage insurance (PMI) when it is no longer required;
  • Charging hidden fees not disclosed in the terms of the loan contract;
  • Adding illegal late fees when mortgage payment was sent on time;
  • Charging excessive or improper inspection fees (a fee charged when they drive by your home to make sure the home is occupied);
  • Charging fraudulent or inflated fees in connection with defaults or foreclosures;
  • Improper charges for force-placed insurance (a/k/a lender-placed insurance);
  • Failing to timely release insurance money in the event of a loss;
  • Truth-In-Lending Act (TILA) violations; TILA is a federal statute designed to require creditors to disclose their terms and costs to allow consumers an opportunity to make an informed decision regarding their credit.
  • Other types of mortgage fraud.
 

If you have experienced any of these practices, or believe that your bank or mortgage servicer has taken advantage of you, please contact us. Nichols Kaster understands how unfair and intimidating it can be to take on a large corporation on your own, and we would like to help.