loanDepot has filed a motion to dismiss a class-action lawsuit in Maryland alleging violations of loan officer (LO) compensation rules and borrower steering, arguing the plaintiffs failed to show they suffered a “concrete injury.”

The lawsuit, filed in July by five borrowers who obtained mortgages from 2019 to 2021, claims loanDepot engaged in a “sophisticated, years-long scheme” to falsify internal documents and federal disclosures to maximize profits ahead of its 2021 initial public offering (IPO).

The plaintiffs are suing under the Truth in Lending Act (TILA) and also allege wire fraud, securities fraud and conspiracy.

In its Sept. details ⇒

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