Mortgage Broker Sued for Loan Disclosure Violations

admin —  January 28, 2009 — 4 Comments

Prime Option Financial Services, LLC (Prime Option) and Mark Belter, have been charged in a lawsuit with several violations of consumer protection laws for allegedly failing to provide required information to consumers signing home mortgage loans.

Prime Option was a mortgage broker company located in Westlake, Ohio. In October, 2007, the company stopped doing business and surrendered its mortgage broker licenses. Mark Belter was a central figure with Prime Option; he is listed as the president and owner on various documents.

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.

This company failed to give consumers required documents about their mortgage loans, and in some cases, it gave them forms that were incomplete,” said Ohio Attorney General Richard Cordray. “Under Ohio law, mortgage brokers are required to provide specific documents and information to consumers, so that they can make educated decisions about their loans.”

The lawsuit charges Prime Option and Mark Belter with violating the federal Real Estate Settlement Procedures Act and the Ohio Consumer Sales Practices Act. In the suit, Attorney General Cordray asks the court to prohibit the company from committing further violations of the law, to reimburse consumers who lost money, and to pay civil penalties. Attorney General Cordray acknowledged the contributions of former Attorneys General Marc Dann and Nancy H. Rogers on this case.

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4 responses to Mortgage Broker Sued for Loan Disclosure Violations

  1. I would like more information and mortgage fraud.

  2. I hope you can answer my queries..

    I’ve come to believe i’ve been a victim of predatory lending– s i was checking my docs.. & i noticed in my title policy– there’s no lender given– but comparing it to same doc which i saw online- same mortgage co– & title co.. there was a lender–whilst mine doesn’t.. is this normal?? an oversight??

    same thing with my deed of trust– there ‘s a notary on it– but this was never done in my presence– in fact, here was only a junior clerk in the room with me– no escrow officer, no broker rep, no notary person,no real witness .. needless to say– my sig was not done in their presence, i didn’t sign any log book, no thumb print..

    is this deed legal??

    hope you can answer me.

    many thanks liz

  3. During the final stage of buging my new home, an apprasial was done after the house was complete. It has a lower value then my original one. But the builder and their loan broker (where I applied for loan) did not disclosure that to us, instead, they did an “update” to my original apprasial and state there is no price change. Is this fraud? Where should I get help?

  4. Why are many other states able to help victims of Predatory Lending, and Florida only talks, but; rarely or never helps anyone.
    In Cape Coral Florida hundreds of foreclosures, and bancruptcies are brought about because of the city billing each resident for $30,000 for water, and sewer construction that was a scam from the beginning by the city councial & mayor. If you cannot pay the city files a lien against the property.

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