Borrowers have added new details in an amended complaint alleging that loanDepot engaged in a “sophisticated, years-long scheme” to steer customers into higher-rate loans to inflate its performance ahead of its 2021 initial public offering (IPO).

The class-action lawsuit, filed in July in Maryland, claims the lender required loan officers (LOs) who couldn’t push higher-cost loans to “transfer” borrowers to internal loan consultants (ILC). However, they allege these transfers were fictitious because the original LOs continued to perform the same duties.

According to the original complaint, if LOs truthfully documented a transfer to secure details ⇒

BusinessMediaguide.Com portal received this content from this noted web source: HousingWire.Com