Minn. AG sues Calif. firm for alleged mortgage fraudby Jessica Mador, Minnesota Public Radio
St. Paul, Minn. — Minnesota Attorney General Lori Swanson is warning consumers to beware of mortgage refinancing scams.
Swanson Monday filed a lawsuit against California-based Meredian Financial Corporation. Swanson says the company charged homeowners thousands of dollars but failed to deliver the promised services.
Swanson says the company masqueraded as mortgage companies to gain Minnesota homeowners' trust and then walked away with their money. The attorney general is urging people to confirm the identities of anyone offering to refinance a home mortgage.
"[People need] to proceed very cautiously before paying money for a refinancing, especially when you the homeowner are approached by the lender as opposed to you the homeowner going out and shopping around," Swanson said.
The attorney general says at least 500 Minnesotans were tricked out of thousands of dollars in the fraudulent deals.
Calls placed to Meredian for comment led to a recorded message.