Loan modification: Oregon sues lender over fees
Loan modification company in California charged Oregon homeowners more than $80,000 in illegal fees, attorney general says.
Subscribe Today to the Monitor
The lawsuit filed this week in Marion County Circuit Court alleges that American Team Mortgage charged 32 Oregon homeowners the fees before providing services.
The complaint alleges the company obtained loan modifications for only a fraction of them and refunded fees to only two homeowners who paid them in advance.
By June 2010, the lawsuit said American Team Mortgage effectively went out of business, leaving dozens of Oregon homeowners without a loan modification or refund.
The lawsuit also alleges that Steve Hufstedler, the company's owner and president, clai