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Written by Jamie Simpson, LawServer Attorney-Editor
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Last Updated November 13, 2008 |
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The Massachusetts AG Office reports that a court has issued a preliminary injunction against Option Mortgage Corp. (Option One), and its parent company H&R Block Mortgage Corp.(H&R Block). As a result of the court finding that there is substantial likelihood that the AG's case against the defendants filed in June of 2008 will prevail, they are now blocked from initiating or continuing foreclosure processes without the AG's approval. Option One and American Home Mortgage Servicing, Inc., which services 9,700 loans for the lender, are required to issue a 30-day notice of foreclosure activities and allow the AG to object to the proceedings. If the measures are objected to, the defendants must pursue court approval. The AG Office claims that the defendants engaged in predatory and discriminatory lending practices and may object to foreclosure proceedings viewed as "presumptively unfair." In order to qualify as unfair, the loan payment must exceed 50% of the homeowner's income, the loan-to-value ratio must be greater than 97%, or the loan must include prepayment penalties or meet several other criteria. The court has also ruled against numerous motions by the defendants to dismiss the originating case.
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