Fairway Independent Mortgage Lawsuits: An Overview
Fairway Independent Mortgage Corporation (Fairway) has faced various lawsuits over the years, alleging diverse claims. Here’s a breakdown of some major lawsuits and their key details:
1. Aveda Invati Lawsuit (2013):
- A class-action filed in California alleged false advertisement of Aveda’s Invati hair care products, including claims of clinically proven hair loss reduction and increased thickness.
- Fairway was accused of misrepresenting itself as an authorized retailer of Aveda products, potentially receiving kickbacks for selling them.
- The lawsuit settled in 2015 for $34 million, providing refunds to consumers and requiring Fairway to modify its advertising claims.
2. Valdez vs. Fairway Independent Mortgage Corporation (2018):
- This lawsuit alleged Fairway’s failure to disclose a yield spread premium (YSP) in mortgage loan estimates, violating California’s unfair competition and consumer protection laws.
- The plaintiffs claimed they were charged higher interest rates than initially quoted due to undisclosed YSPs.
- The lawsuit’s current status and resolution are unknown.
3. Homestead Poaching Lawsuit (2022):
- Filed in New York state court, this lawsuit alleged that Fairway poached a high-earning employee from Homestead Funding Corporation and enticed several others to follow suit.
- Homestead claimed Fairway interfered with its contractual relationships and sought to prevent further employee poaching.
- The lawsuit was transferred to federal court in 2022, and its current status is unclear.
4. Glen vs. Fairway Independent Mortgage Corporation (2009):
- This Missouri class-action lawsuit alleged Fairway’s failure to disclose additional compensation (YSP) received in loan-origination agreements, violating the state’s Merchandising Practices Act.
- The plaintiffs claimed they were misled by Fairway’s good-faith estimates, which did not account for the additional compensation.
- The court granted class certification in 2009, but the lawsuit’s final outcome is unclear.
5. Regions Bank vs. Fairway Independent Mortgage Corporation (2009):
- This lawsuit alleged that Fairway misrepresented its financial situation and engaged in fraudulent activities related to a real estate financing transaction.
- Regions Bank claimed Fairway used inflated loan amounts and false documents to secure funding for a project, leading to financial losses.
- The lawsuit’s outcome is unknown.
6. BBB Complaints:
- Fairway has received numerous customer complaints registered with the Better Business Bureau (BBB), raising concerns about loan processing delays, communication issues, and unfair loan terms.
- While individual complaints may not represent widespread issues, they highlight potential customer dissatisfaction with Fairway’s services.
It’s crucial to note that these are just a few examples, and Fairway has likely faced other lawsuits over various claims. This information provides a glimpse into some legal challenges the company has faced and areas where consumer concerns have been raised.
Remember, legal matters can be complex, and this information should not be considered legal advice. If you have concerns about Fairway Independent Mortgage or believe you have been wronged, it’s best to consult with an attorney for professional guidance.
