Dallas Firm Faces Allegations of Exposing NY Black Homeowners at Greater Risk of Losing Their Homes

by San Antonio Attorney

Lone Star Funds, an equity firm from Dallas, is currently facing a lawsuit filed by a group of New York black homeowners, accusing the firm of steering them towards foreclosure through misleading mortgage reports.

The plaintiff gave a statement in federal court regarding the actions of the company mortgage servicer.  The employee would call him almost two to three times a day, with ongoing foreclosure threats.

Caliber Home Loans, the involved company, also serving as the mortgage servicer of Lone Star, denied the allegations and described the lawsuit ‘without merit’.

The federal suit, which was filed last week, directs its complaint towards the United States Department of Housing and Urban Development.

The current issue as of the moment reflects the sale of the agency’s delinquent mortgages that were supported by the federal government to Lone Star.

The sales set off the consequence of the homeowners having lesser protections and black homeowners severely affected by their share of mortgages insured by the government in New York City.

A representative of HUD was reached for a statement, but could not be reached.  Caliber, a company based in Irving, stressed that it has treated its borrowers with equality.

Marion McDougall, the executive vice president said that each loan modification was reviewed without any bias to race, gender and sexual orientation.

The company stated that they rendered aid to 15,300 families by changing the scope and limitation of their loans.  However, four homeowners still filed for a class action lawsuit, even claiming that Caliber made false promises to homeowners that a transfer will not make any significant change to the terms and conditions of their contract, when it controlled their loans.

Lone Star is a company that acquires assets that have financial trouble in the international setting.  The company is also one of the top-billed buyers of mortgages sold by HUD.

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