Predatory Lending

Henneghan v. Countrywide Home Loans Consumer Fraud Suit

Sanford Heisler Sharp, LLP represented an individual homeowner in claims of fraud and violation of the D.C. Consumer Protection Procedures Act (CPPA) against the developer of the converted condominium unit she purchased and the lender which financed the purchase. The court found that the homeowner had claims against the lender to be heard by a jury of fraud in misrepresenting that she could afford her mortgage loan, and in making or enforcing unconscionable terms in a sale. Immediately before trial the case was resolved through settlement.

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Countrywide Home Loans Predatory Lending Action

Sanford Heisler Sharp, LLP represented a number of individual homeowners and a condominium association in claims against developers and lenders for the marketing, sale, and financing of apartments converted to condominiums in Southeast DC. The case charged that the developers and lenders violated the D.C. Consumer Protection Procedures Act (CPPA) by failing to disclose substandard construction and property conditions, inflated appraisal values, and that property inspections and other safeguards required for FHA loans had been ignored in selling and making loans for the purchase of these condominium units. Resolving the case required an appeal to the District of Columbia Court of Appeals resulting in a decision setting new precedent in interpreting the duties of merchants to disclose material facts to consumers under the CPPA. Following that decision and on the eve of trial, a settlement was reached.

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