Indymac Class Action Lawsuit Claims Bank Hustled Them

LOS ANGELES (CN) – Indymac Bank and its successor, OneWest Bank, defrauded homebuyers by promising to modify their mortgages, but “never at any time possessed a good faith intention to perform on these loan modification agreements,” a class action claims in Superior Court. “Defendant sought only to induce homeowners into making further payments and defraud homeowners of their money.”

The class claims the bank packaged and sold “mass numbers” of mortgages as mortgage-backed securities (MBS) and sold them to investors, “and retained or otherwise negotiated for the servicing rights to such mortgage loans.” They claim that “Defendants knew, or reasonably should have known, that the private investors of the MBS in which plaintiffs’ mortgage was a part of [sic], had not and would not authorize defendants to modify plaintiffs’ mortgage loans, whereby [sic] reducing plaintiffs’ monthly mortgage payment and effective mortgage rate. …

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