Post by unlawflcombatnt on Jul 10, 2007 2:02:21 GMT -6
Here's a link to an interesting article from Patrick.net about Implode-O-Meter, and how mortgage lender Loan Center of California is suing them for libel. The Implode-O-Meter site allegedly posted incorrect information about Loan Center of California (LLC) that caused several investment banks to sever ties with LLC (i.e., cut off the easy money.)
In the complaint by the Plaintiff, Loan Center of California, describes itself as follows in the following excerpt:
"Plaintiff is a wholesale mortgage company which provides mortgage loans through independent mortgage brokers to consumers pursuant to its various government-issued lending
licenses in the states in which it operates. The financing for the mortgage loans comes from other mortgage lenders or investors by contract with Plaintiff, such as Washington Mutual and Credit
Suisse."
According to the complaint, the alleged false information caused Credit Suisse and Washington Mutual to withdraw a total of $3.8 million from the plaintiff's (LCC) bank accounts, which was 75% of of LLC's cash on hand. In addition, other lenders have required LLC to repurchase loans based on the allegedly false information from the Implode-O-Meter website.
As per the claim, Implode-O-Meter stated that the Loan Center of California had filed for bankruptcy, was no longer operating as a mortgage lender, and had committed mortgage fraud. LLC claims these claims are entirely false, and that Implode-O-Meter has committed libel by posting this information.
It's certainly interesting to see a mortgage originating company suing someone else for wrongdoing. Talk about the pot calling the kettle black.
In the complaint by the Plaintiff, Loan Center of California, describes itself as follows in the following excerpt:
"Plaintiff is a wholesale mortgage company which provides mortgage loans through independent mortgage brokers to consumers pursuant to its various government-issued lending
licenses in the states in which it operates. The financing for the mortgage loans comes from other mortgage lenders or investors by contract with Plaintiff, such as Washington Mutual and Credit
Suisse."
According to the complaint, the alleged false information caused Credit Suisse and Washington Mutual to withdraw a total of $3.8 million from the plaintiff's (LCC) bank accounts, which was 75% of of LLC's cash on hand. In addition, other lenders have required LLC to repurchase loans based on the allegedly false information from the Implode-O-Meter website.
As per the claim, Implode-O-Meter stated that the Loan Center of California had filed for bankruptcy, was no longer operating as a mortgage lender, and had committed mortgage fraud. LLC claims these claims are entirely false, and that Implode-O-Meter has committed libel by posting this information.
It's certainly interesting to see a mortgage originating company suing someone else for wrongdoing. Talk about the pot calling the kettle black.