Minneapolis, MN: If you are on the internet, you are bound to see multiple ads from Amerisave Mortgage. They are everywhere! Thier advertisements always proclaim to have what would be the best interest rates in the market.
To any industry insider, there were, and continue to be, serious reservations about those claims, and the practices of the company. Assuming they really could offer those amazing interest rates, every other company offering mortgage loans – banks, brokers, and lenders, would all be out of business!
Finally, someone has taken them to task. Mehri & Skalet, in conjunction with co-counsel, filed a class action lawsuit against Amerisave Mortgage Corporation for violating the Truth in Lending Act and state consumer protection statutes. Plaintiffs allege that Amerisave engaged in unfair and deceptive practices in the selling of residential mortgages.
The lawsuit alleges that Amerisave promises customers they can quickly obtain a “lock-in” of a low interest rate, and requires the customer to pay upfront fees in order to obtain it. The Amerisave class action complaint contends that the company does not actually provide the rate lock and/or does not approve the loan, for reasons unrelated to the credit-worthiness of the customer.
Word of advice? Never use some out-state internet based lender. There is NOTHING they can offer that you can’t get from the local mortgage company down the street. Go visit the local lender for a face-to-face visist when getting the largest financial transaction of your life!