On February 28, 2013, US District Court Judge Edward Chen granted final approval to the class settlement reached between plaintiffs and Amerisave. The settlement class includes all customers who incurred fees during the application process for an Amerisave mortgage loan who did not ultimately obtain a mortgage loan with Amerisave, during specified time periods. The court has appointed a settlement administrator who will send notice to the class.
M&S, in conjunction with co-counsel, filed a class action lawsuit against Amerisave Mortgage Corporation for violating the Truth in Lending Act and state consumer protection statutes. Plaintiffs allege that Amerisave engaged in unfair and deceptive practices in the selling of residential mortgages. The lawsuit alleges that Amerisave promises customers they can quickly obtain a “lock-in” of a low interest rate, and requires the customer to pay upfront fees in order to obtain it. The Amerisave class action complaint contends that the company does not actually provide the rate lock and/or does not approve the loan, for reasons unrelated to the credit-worthiness of the customer.
Furthermore the Amerisave class action complaint asserts that customers who become fed up with the company’s unnecessary delays and failure to keep its promises and attempt to pull out of the loan are subject to substantial cancellation fees, as high as $500.
Plaintiffs filed this Amerisave class action complaint in March 2011; the case is in its early stages. M&S is investigating the use of similar practices by other mortgage lenders. If you have applied for a mortgage or a mortgage refinancing with Amerisave or any other mortgage company and faced similar issues, please fill out our Consumer Complaint Form.