Mortgage Company Sued for Deceptive Trade Practices

admin —  January 5, 2010 — 4 Comments

Alternative Lending of Colorado, a Colorado Springs-based company, and its managing general partner, James W. Dale III , 64, Pueblo West, Colorado, and top loan originator, April A. Bigler, 29, Pueblo West, Colorado, have been sued for allegedly deceptive trade practices.

According to the complaint, filed in Fremont County District Court, Bigler regularly engaged in deceptive trade practices, including misrepresenting loans’ interest rates, quoting monthly mortgage payments to consumers that did not include taxes and insurance costs, and delaying closings to pressure consumers into signing a mortgage. The complaint also alleges that Bigler worked with appraisers to over-value homes, resulting in borrowers owing more on their homes than they were worth; failed to attend closings, which did not allow borrowers to ask questions about the terms of their loans; inflated borrowers’ incomes on their mortgage applications; and failed to provide timely, accurate or complete disclosures to borrowers.

As a result of the deceptive trade practices alleged in the complaint, nearly 44 percent of borrowers for whom Bigler originated a mortgage loan experienced some type of foreclosure action. Dale is alleged to have known about Bigler’s misconduct and not taken any disciplinary action.

The Office of the Attorney General began investigating Bigler and Alternative Lending of Colorado after receiving more than 15 complaints about the alleged misconduct, which took place between 2004 and 2008. The majority of the borrowers for whom Bigler originated mortgage loans live in Cañon City, Colorado.

As part of its lawsuit, the Office of the Attorney General is seeking restitution for the victims of Alternative Lending’s business practices, civil penalties, disgorgement of unjust proceeds, and an injunction, barring the defendants from engaging in false and deceptive lending practices.


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4 responses to Mortgage Company Sued for Deceptive Trade Practices

  1. Check out this site, and sign the petition million loan revolt

  2. we had our mortgage audited and have been given a long list of violations that were made by the mortgage company example..bait and switch, predatory lending, over inflating appraisal of home and using non independant appraiser. we are going to lose our home….can anyone offer suggestions.?

  3. Jody McCasland July 13, 2010 at 4:39 pm

    I still can’t get my house refinanced because she over appraised it. My loan is split into two loans one of which balloons in a few years and I will not be able to pay off.

    I expect then I will join the ranks of those that were foreclosed on unless by some miracle I can get refinanced.

  4. holly haines mom January 8, 2010 at 12:41 am

    a local lender had a home for sale for 140000 it was this for a long time /our family made an offer of 130000 and said we would pay closing costs..we did our job to place 5ooo good faithwith our realitor this was done at christmas 09/we now hear they bumped the price to 185ooo on the 6th of january1010..can they do this and cause us to counter their offer now?this smells when they know we sincerly made an offer at aright price they asked at time..can we sue?

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