#mortgage-steering

#mortgage-steering

Testimony from the 12 additional witnesses includes claims that Zillow personnel fly to real estate offices to instruct Zillow Flex agents in person on the need to meet Zillow Home Loans (ZHL) quotas to avoid putting things in writing, and that Zillow's loan officers frequently misrepresent or omit important details about borrowers' true closing costs, leading buyers to pay excessive costs or lose the house.

Borrowers have added new details in an amended complaint alleging that loanDepot engaged in a sophisticated, years-long scheme to steer customers into higher-rate loans to inflate its performance ahead of its 2021 initial public offering (IPO). The class-action lawsuit, filed in July in Maryland, claims the lender required loan officers (LOs) who couldn't push higher-cost loans to transfer borrowers to internal loan consultants (ILC).

Several other borrowers also filed suits in June and July, accusing the national lender of paying Raleigh Realty $15,000 per month in 2021 and 2022 in exchange for exclusive client referrals. All of the plaintiffs, including VonBlohn, are seeking unspecified damages under RESPA and North Carolina's Unfair and Deceptive Trade Practices Act, arguing they could have obtained lower mortgage rates and fees if not for the alleged steering.