A federal judge in Maryland has denied loanDepot’s bid to dismiss a proposed class-action lawsuit that accuses the lender of violating federal loan officer compensation rules and steering borrowers into higher-rate mortgages.
U.S. District Court Judge Julie R. Rubin on Friday rejected loanDepot’s motion to dismiss for failure to state a claim and for lack of jurisdiction, ordering the company to answer an amended complaint filed by borrowers.
The case centers on alleged violations of the Truth in Lending Act (TILA)’s loan originator compensation rule, which prohibits paying loan officers based on a loan’s terms or interest rate.
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