AG sues mortgage lender for misleading customersby Elizabeth Stawicki, Minnesota Public Radio
St. Paul, Minn. — Minnesota Attorney General Lori Swanson is suing a mortgage broker called Source Lending Corp., based in Plymouth, Minn., for violating state consumer protection laws.
Swanson says Source Lending misled and deceived consumers by promising it could refinance their mortgages at a low fixed rate. Instead, some homeowners ended up with interest-only mortgages or escalating adjustable rates.
She says the practices are "the very type of abuses that created the mortgage lending crisis."
One of the company's customers, Bruce Morris of Brooklyn Park, says his family didn't get a lower rate -- they got a higher one.
"Source Lending jacked up our payment $900 more a month," Morris said. "How does that benefit us? They've destroyed our lives. We're up here hurting."
An attorney representing Source Lending Corp. said the company had no comment.
The complaint, which was filed in Hennepin County, seeks to stop Source Lending from mortgage brokering and order the company to pay restitution.
(The Associated Press contributed to this report)