Almost Every Loan File Reviewed Had Missing, Incomplete Documents, Says Ohio AG In Civil Suit Against Now-Defunct Mortgage Brokerage

From the Office of the Ohio Attorney General:

• A Cleveland-area mortgage broker failed to give consumers all the information they needed about their new loans, according to a lawsuit filed today in Cuyahoga County Common Pleas Court by Ohio Attorney General Richard Cordray. The suit charges Prime Option Financial Services, LLC (Prime Option) and Mark Belter, its leader, with several violations of consumer protection laws for allegedly failing to provide required information to consumers signing home mortgage loans. “This company failed to give consumers required documents about their mortgage loans, and in some cases, it gave them forms that were incomplete,” said Attorney General Cordray.

***

• An Attorney General investigation of residential mortgage loans brokered by Prime Option found that almost every loan reviewed had missing or incomplete documents. For example, the following required documents often were found to be missing or incomplete: Mortgage Loan Origination Disclosure Statements, which disclose fees paid to the broker; escrow disclosure forms, which estimate the monthly cost of a loan; and Ohio Homebuyers’ Protection Act Informational Documents, which explain consumers’ rights.

• The investigation also found that Prime Option failed to store or dispose of business records containing consumer information as required by the federal Gramm-Leach-Bliley Act, which is designed to protect personal financial information and prevent identity theft. The lawsuit charges Prime Option and Mark Belter with violating the federal Real Estate Settlement Procedures Act and the Ohio Consumer Sales Practices Act.

For more, see Mortgage Broker Sued for Loan Disclosure Violations. UndoMortgageLoans TILAdelta