Roseville, CA (PRWEB) January 26, 2012
On January 13, 2012 UFAN Legal Group, Computer filed suit against U.S. Bank in San Diego County Superior Court (case quantity 37-2012-00065195-CU-OR-EC) on behalf of borrowers allegedly injured by the Banks lending and servicing practices.

The complaint alleges that U.S. Bank schemed to profit from reckless and negligent lending practices that ensured borrowers would default on their mortgages. US Bank is alleged to have abandoned its personal underwriting standards in an effort to originate as several mortgages as possible for immediate sale on the secondary mortgage market. The complaint argues that since US Bank could immediately sell mortgages and get completely compensated, it incentivized fraud by loan officers and brokers by providing higher origination fees on subprime loans.

According to the complaint, Plaintiffs allege US Bank acted negligently in both the origination and modification of Plaintiffs loans. Plaintiffs argue that US Bank wore two hats 1 of a purported lender of money and a single as a developer and seller of residential mortgage backed securities (RMBS). By taking on such a dual function, US Bank was no longer acting as a mere lender of cash, but rather acting as a middleman in marketing and advertising and selling loans. US Bank breached its duty by abandoning standard underwriting standards and encouraging the origination of predatory loans, the complaint alleges.

The complaint alleges that U.S. Bank used falsified borrower info like credit ratings and income, as effectively as inflated property appraisals, as component of the origination method. It is argued that US Bank incentivized property appraisers and loan originators to falsify this info in order to spot borrowers in bigger and more dangerous loans. The higher the loan quantity, the much more income U.S. bank was able to make on the sale of the RMBS to investors. The complaint suggests that Plaintiffs borrowed excessively in reliance on this falsified info and were harmed by the excessive debt burden.

Plaintiffs also allege negligence on the part of U.S. Bank associated to the servicing of Plaintiffs loans. Plaintiffs have been lured into a false sense of security by means of the modification procedure, and relied to their detriment on representations by U.S. Bank that a modification would be forthcoming. The complaint alleges that no modification was, in reality, intended and that Plaintiffs placed false hope and abandoned other legal rights in reliance on the modification procedure. In numerous circumstances, Plaintiffs had been induced to default on payments to qualify for modification. US Bank had an interest in foreclosing on Plaintiffs as it no longer held the threat of default and now receives charges for foreclosing.

Plaintiffs argue that US Bank was in a position to foresee this detrimental reliance and subsequent harm, and consequently breached its duty to Plaintiffs.

The complaint against U.S. Bank is the newest lawsuit filed by UFAN on behalf of borrowers alleged to have been injured by the lending and servicing practices of the major banks. Home owners believed to have been injured by way of the mortgage practices of US Bank or other individuals are urged to get in touch with UFAN.

ABOUT THE UNITED FORECLOSURE Lawyer NETWORK

UFAN Legal Group, Pc dba United Foreclosure Attorney Network (UFAN) is a Roseville, California-primarily based law firm delivering mortgage litigation and other debt associated legal solutions. The devoted attorneys and employees at UFAN operate tirelessly to seek justice and fight for the rights of its consumers. For much more information get in touch with toll totally free 1-866-400-4242.

This release could constitute attorney advertisement. Kristin Crone, Esq. is the attorney responsible for this advertisement. The data in this release and on the UFAN web site (ufanlaw.com) is for common data purposes only. Nothing at all in this release or on the UFAN website should be taken as legal suggestions. Prior successes are no assure of future functionality. Litigation is inherently uncertain and outcomes in litigation are never ever assured.

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