Class Action Lawsuit Filed Against Homecomings

The law firms Mehri & Skalet and Sprenger + Lang have filed a multi-claim, nationwide class action lawsuit in the U.S. District Court for the District of Minnesota against Homecomings Financial LLC. The complaint alleges that Minneapolis-based Homecomings has engaged in a nationwide scheme of illegal, unfair, unlawful and deceptive business practices that violate both federal and state laws in the servicing of home-secured loan transactions.

According to the complaint, Homecomings collects improper fees and charges from homeowners, including charges for unnecessary and unauthorized property inspections, and unauthorized and excessive fees for using its electronic payment processing services; engages in the practice of ‘force-placing’ hazard insurance; and treats borrowers as if they are in default even when they have complied with the terms of their mortgage agreements.

‘The allegations made by our clients indicate a pattern of misconduct by Homecomings that is illegal, unfair and very disturbing. No one ought to lose their house because of a mortgage company's misdeeds,’ says Steve Sprenger, an attorney with Sprenger + Lang.

The plaintiffs bringing the lawsuit are residents of California, Illinois, Michigan, Kentucky and Florida. The lawsuit was filed on behalf of all persons nationwide whose home mortgages were serviced by Homecomings and whose loans, the law firms say, were improperly assessed late fees, or were wrongly assessed charges for force-placed insurance, unnecessary and unauthorized property inspections, and the use of Homecomings' electronic payment processing service.

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