"According to the lawsuit, Rocket funded three residential mortgages totaling more than $920,000 based on the applications submitted by Sharp Loan. The company later discovered what it described as misleading, untrue, fabricated, altered and otherwise fraudulent information that understated or concealed the borrowers' debts. Rocket said the undisclosed loans rendered the mortgages noncompliant with investor requirements, forcing the lender to repurchase the loans and resell them at a loss."
"The company claims damages of about $194,000, citing investor repurchase demands, secondary-market losses and related costs. The lawsuit ultimately accuses Sharp Loan of breaching its broker agreement with Rocket, failing to indemnify the lender for losses and acting in bad faith. Broker, with the full knowledge, approval, and active participation of Reyes, engaged in this conduct knowingly, willfully, and/or with specific and malicious intent to defraud Rocket Mortgage, the suit reads."
Rocket Mortgage alleges Sharp Loan failed to disclose that borrowers obtained multiple mortgages with United Wholesale Mortgage in the days before the closings, resulting in material misstatements on loan applications. Rocket funded three residential loans totaling over $920,000 and later identified misleading, fabricated, altered, and fraudulent information that understated or concealed the borrowers' debts. Rocket asserts the undisclosed loans made the mortgages noncompliant with investor requirements, forced repurchases and resale at a loss, and produced approximately $194,000 in damages from repurchase demands, secondary-market losses, and related costs. The suit accuses Sharp Loan of breaching its broker agreement, failing to indemnify, and acting in bad faith, and brings a separate fraud claim naming Reyes, who is listed as a company director and president on public profiles. Rocket seeks monetary damages, interest, legal fees, and exemplary relief.
Read at www.housingwire.com
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