Since 1979, lenders have been allowed to charge exceptionally high interest rates on residential second mortgage loans secured by Missouri real estate (sometimes called “home equity loans”). In fact, since 1998, the Missouri Second Mortgage Loan Act has allowed unlimited interest rates on those loans. However, in exchange for allowing lenders to charge what would otherwise be a usurious (and therefore illegal) interest rate, the Act places strict limits on settlement charges or fees that can be charged in connection with these loans. And, when lenders violate the Act, Missouri law precludes those lenders—or anyone else—from collecting interest on the illegal loans, and borrowers who have been charged illegal fees can bring an action for both actual and punitive damages.
When Michael and Shellie Gilmor received a loan from a now-defunct sub-prime mortgage lender known as “Preferred Credit Corporation,” they were charged a host of illegal settlement charges in addition to the high interest rate allowed by the Act. Gilmor v. Preferred Credit Corporation is a class-action lawsuit seeking redress for those violations on behalf of both the Gilmors and everyone else who was charged illegal fees in connection with loans from Preferred Credit. The suit also alleges that the class members’ tainted loans were later transferred or assigned (by way of the secondary mortgage market) to various financial institutions, including US Bank, IMPAC Mortgage Holdings, Deutsche Bank, Credit Suisse First Boston, Advanta Mortgage Corporation, Countrywide, JPMorgan Chase, Residential Funding Company, Wells Fargo Bank, and Sovereign Bank.
The Gilmor suit alleges that those national financial institutions knew or should have known that Preferred Credit was charging illegal fees on loans to class members, and that those loans violated Missouri law. Nonetheless, those institutions collected payments of principal and interest on the loans, in violation of Missouri law. The lawsuit seeks redress for those institutions’ own violations of the Act, and also seeks to hold them derivatively liable (as assignees) for the violations committed by Preferred Credit, from whom they obtained the class members’ tainted loans. The plaintiffs seek, on behalf of all class members, actual and punitive damages, including repayment of the illegal fees and a return of all interest collected in violation of the Act, along with prejudgment interest, attorney’s fees, costs and expenses.
April, 2012 – Settlement with Defendant Credit Suisse First Boston Mortgage – A settlement with one of the defendants in the Gilmor case, Credit Suisse First Boston Mortgage, received preliminary approval in April of 2012. That settlement is intended to resolve the claims of class members whose loans were obtained by that defendant. For more information regarding the settlement of claims against Credit Suisse First Boston, click here.
May, 2012 – Settlement with Defendant Sovereign Bank – A settlement with one of the defendants in the Gilmor case, Sovereign Bank, has recently received preliminary approval in Thomson v. Sovereign Bank, N.A., a related case. For more information about that case and the settlement of claims against Sovereign Bank, click here.
November, 2012 – A number of settlements with different Defendants received preliminary approval in November 2012. The individual settlements are each intended to resolve the claims of certain class members whose loans were obtained and/or serviced by particular defendant. See below for more details on each individual settlement.
WBSV is pleased to announce a $214,534.53 class action settlement in Gilmor, et al. v. Preferred Credit Corporation, et al., Case No. 4:10-cv-00189-ODS.
Countrywide Home Loans, Inc. and BAC Home Loans Servicing, L.P. have agreed to pay $214,534.53 to settle the claims of 19 class members who obtained 11 loans that were serviced by Countrywide Home Loans, Inc. and/or BAC Home Loans Servicing, L.P. Class Members who do not opt out of the Settlement will be entitled to a substantial settlement payment under the Settlement. The estimated settlement payments range from a low of $1,715.41 to a high of $28,107.67, with an average of $10,463.48.
Class Members can see what we currently estimate the amount of their settlement payment to be by accessing the Proposed Distribution Schedule. To access the Proposed Distribution Schedule for your settlement benefit, click here. (link is not yet active)
Links to Settlement Documents:
WBSV is pleased to announce a $3,000,000.00 class action settlement in Gilmor, et al. v. Preferred Credit Corporation, et al., Case No. 4:10-cv-00189-ODS.
Impac Mortgage Holdings, Inc., IMH Assets Corporation, Impac Funding Corporation, Impac Secured Assets Corporation, Wingspan Portfolio Advisors, LLC (collectively, “Impac Defendants”) have agreed to pay $3,000,000.00 to settle the claims of 303 class members who obtained 177 loans that were purchased by, assigned or conveyed to, or otherwise owned and/or held by or serviced by Impac Mortgage Holdings, Inc., IMH Assets Corporation, Impac Funding Corporation, Impac Secured Assets Corporation, and/or Wingspan Portfolio Advisors, LLC,. Class Members who do not opt out of the Settlement will be entitled to a substantial settlement payment under the Settlement. The estimated settlement payments range from a low of $2,684.21 to a high of $46,235.00, with an average of $14,208.43.
Class Members can see what we currently estimate the amount of their settlement payment to be by accessing the Proposed Distribution Schedule. To access the Proposed Distribution Schedule for your settlement benefit, click here. (link is not yet active)
Links to Settlement Documents:
WBSV is pleased to announce a $398,032.98 class action settlement in Gilmor, et al. v. Preferred Credit Corporation, et al., Case No. 4:10-cv-00189-ODS.
Defendant Advanta Mortgage Corporation of USA (“Advanta”) has agreed to pay $398,032.98 to settle the claims of 775 class members who obtained 437 loans that and on whose behalf proofs of claim were filed against Advanta Mortgage Corp., USA in the Chapter 11 bankruptcy case styled as In re Advanta Corp., et al., Case No. 09-13931 in the United States Bankruptcy Court for the District of Delaware. Class Members who do not opt out of the Settlement will be entitled to a settlement payment under the Settlement. The estimated settlement payments range from a low of $9.01 to a high of $4,096.66, with an average of $408.21.
Class Members can see what we currently estimate the amount of their settlement payment to be by accessing the Proposed Distribution Schedule. To access the Proposed Distribution Schedule for your settlement benefit, click here. (link is not yet active)
Links to Settlement Documents:
WBSV is pleased to announce a $275,000.00 class action settlement in Gilmor, et al. v. Preferred Credit Corporation, et al., Case No. 4:10-cv-00189-ODS.
Bank of America, N.A., as successor by merger to LaSalle National Bank in its capacity as former trustee for Impac CMB Trust Series 1999-1 (“LaSalle”) has agreed to pay $275,000.00 to settle the claims of 64 class members who obtained 35 loans that that was purchased by, assigned or conveyed to, or otherwise owned and/or held by or serviced by Bank of America, N.A., as successor by merger to LaSalle National Bank in its capacity as former trustee for Impac CMB Trust Series 1999-1. Class Members who do not opt out of the Settlement will be entitled to a substantial settlement payment under the Settlement. The estimated settlement payments range from a low of $1,184.92 to a high of $9,901.22, with an average of $4,816.60.
Class Members can see what we currently estimate the amount of their settlement payment to be by accessing the Proposed Distribution Schedule. To access the Proposed Distribution Schedule for your settlement benefit, click here. (link is not yet active)
Links to Settlement Documents:
WBSV is pleased to announce a $375,000.00 class action settlement in Gilmor, et al. v. Preferred Credit Corporation, et al., Case No. 4:10-cv-00189-ODS.
JPMorgan Chase Bank, N.A. as successor by merger to Chase Home Finance, LLC has agreed to pay $375,000.00 to settle the claims of 89 class members who obtained 50 loans that were serviced by Chase Home Finance, LLC or JPMorgan Chase Bank, N.A. Class Members who do not opt out of the Settlement will be entitled to a substantial settlement payment under the Settlement. The estimated settlement payments range from a low of $659.05 to a high of $11,716.12, with an average of $3,992.21.
Class Members can see what we currently estimate the amount of their settlement payment to be by accessing the Proposed Distribution Schedule. To access the Proposed Distribution Schedule for your settlement benefit, click here. (link is not yet active)
Links to Settlement Documents:
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