FRESNO – Two Arkansas residents allege two financial companies wrongfully added balloon payments to mortgages.
Jimmie Hodge and Gloria Hodge filed a complaint as individuals and on behalf of a class of similarly situated individuals on Oct. 7 in the U.S. District Court for the Eastern District of California against the Nationstar Mortgage Holdings Inc. and Bank of America NA alleging violation of the Real Estate Settlement Procedures Act, the Fair Debt Collection Practices Act and other counts.
According to the complaint, the plaintiffs allege that they were being presented with unexpected balloon payments at the end of their mortgage by Nationstar when it acquired servicing for Bank of America. The plaintiffs allege the amount Nationstar claimed due was 20 percent of the underlying loan, and that the balloon payment cannot be verified because the defendants do not provide a complete servicing and payment history for the life of the loan.
The plaintiffs hold Nationstar Mortgage Holdings Inc. and Bank of America NA responsible because the defendants allegedly refused to provide a complete servicing and payment history for the duration of the loan, unlawfully increased the amount purportedly owed by borrowers and forced plaintiffs to pay unsubstantiated additional amounts or else risk the foreclosure of their property.
The plaintiffs request a trial by jury and seek judgment against defendants, certify case as a class action, designate plaintiffs as representative, declaratory relief, damages, interest, restitution, attorneys’ fees, costs and further relief as the court may deem proper. They are represented by Hank Bates of Carney Bates & Pulliam PLLC in Little Rock, Arkansas; Brandon M. Haubert of Wilson & Haubert PLLC in Clarksville, Arkansas; and John B. Thomas of Hicks Thomas LLP in Sacramento.
U.S. District Court for the Eastern District of California, Fresno Division Case number 1:16-cv-01516