21st Mortgage Corporation, a mortgage lender headquartered in New York, has been embroiled in several class action lawsuits over the past few years. These lawsuits raise various concerns about the company’s business practices and potential harm to borrowers. Here’s a breakdown of the key issues:
1. Repeated, Annoying, and Harassing Phone Calls:
- Date: June 2019
- Claim: 21st Mortgage engaged in “repeated, annoying, and harassing” debt collection phone calls, even after being asked to stop.
- Status: Ongoing lawsuit seeking to represent a class of borrowers who received these calls.
2. Unfair Lending Practices:
- Date: October 2021
- Claim: 21st Mortgage engaged in unfair lending practices, including charging excessive interest rates and fees, targeting low-income borrowers, and failing to disclose important information about the terms of loans.
- Status: Ongoing lawsuit seeking to represent a class of borrowers who were allegedly harmed by these practices.
3. Failure to Comply with Consumer Protection Laws:
- Date: January 2018
- Claim: 21st Mortgage engaged in deceptive and misleading advertising, failed to provide accurate loan disclosures, and violated various other consumer protection laws.
- Status: Settled for $1.5 million by the New York Department of Financial Services.
4. Insurance Sales and Misrepresentation:
- Date: July 2023
- Claim: 21st Mortgage acted as an insurance agent and sold unnecessary insurance policies to borrowers without their proper knowledge or consent.
- Status: Ongoing lawsuit seeking to represent a class of borrowers who were allegedly affected by this practice.
5. Additional Concerns:
- Beyond the specific class action lawsuits, 21st Mortgage has also faced numerous consumer complaints alleging various issues like poor customer service, loan processing delays, and unfair mortgage modifications.
Impact of the Lawsuits:
These lawsuits raise serious questions about 21st Mortgage’s business practices and their impact on borrowers. If the company is found liable, it could face significant financial penalties and be forced to change its practices.
21st Mortgage’s Response:
21st Mortgage has denied all allegations and defended its business practices. The company has argued that it complies with all applicable laws and regulations.
Future of the Lawsuits:
The outcome of these lawsuits will be closely watched by borrowers, consumer advocates, and the financial industry. A negative outcome for 21st Mortgage could have a significant impact on the company’s future and potentially lead to reforms in the mortgage lending industry.
It is important to note that this is not an exhaustive list of all the legal issues surrounding 21st Mortgage. It is advisable for borrowers to consult with a lawyer if they have any concerns about their loan or have been affected by any of the practices discussed above.
