Fairway Independent Mortgage Lawsuit

Fairway Independent Mortgage Corporation (Fairway), a prominent name in the mortgage industry, has encountered various legal challenges over the years. These lawsuits encompass diverse claims, ranging from misrepresentation of products to alleged unethical business practices. This article delves deeper into some major lawsuits against Fairway, providing a comprehensive overview and highlighting potential implications for both consumers and the company.

Key Lawsuits and Allegations:

1. Aveda Invati Lawsuit (2013):

This class-action lawsuit, filed in California, accused Fairway of misleading consumers about the effectiveness of Aveda’s Invati hair care products. Specifically, the lawsuit alleged false advertising regarding claims of clinically proven hair loss reduction and increased thickness. Additionally, Fairway was accused of misrepresenting itself as an authorized retailer of Aveda products and potentially receiving kickbacks for selling them. The lawsuit settled in 2015, resulting in a $34 million payout to consumers and requiring Fairway to modify its advertising practices.

2. Valdez vs. Fairway Independent Mortgage Corporation (2018):

This lawsuit centered around Fairway’s alleged failure to disclose yield spread premiums (YSPs) in mortgage loan estimates, potentially violating California’s consumer protection laws. The plaintiffs claimed that Fairway charged them higher interest rates than initially quoted due to undisclosed YSPs. While the current status and resolution of this lawsuit remain unclear, it raises concerns about potential transparency issues in Fairway’s loan estimation practices.

3. Homestead Poaching Lawsuit (2022):

Homestead Funding Corporation filed this lawsuit in New York, alleging Fairway poached a high-performing employee and attempted to entice others to join them. Homestead accused Fairway of interfering with contractual relationships and sought to prevent further employee poaching. This case was transferred to federal court in 2022, and its current status and outcome are not readily available.

4. Glen vs. Fairway Independent Mortgage Corporation (2009):

This Missouri class-action lawsuit accused Fairway of violating the state’s Merchandising Practices Act by failing to disclose additional compensation (YSPs) included in loan-origination agreements. The plaintiffs claimed they were misled by Fairway’s good-faith estimates, which did not account for this additional compensation. While the court granted class certification in 2009, the final outcome of this case remains unknown.

5. Regions Bank vs. Fairway Independent Mortgage Corporation (2009):

Regions Bank accused Fairway of misrepresenting its financial situation and engaging in fraudulent activities related to a real estate financing transaction. The lawsuit alleged that Fairway used inflated loan amounts and false documents to secure funding, leading to financial losses for Regions Bank. The outcome of this lawsuit is also not readily available.

6. BBB Complaints:

Fairway has faced numerous customer complaints registered with the Better Business Bureau (BBB), raising concerns about various issues, including loan processing delays, communication lapses, and unfair loan terms. While individual complaints may not represent widespread problems, they highlight potential areas where consumers have experienced dissatisfaction with Fairway’s services.

Important Considerations:

• This list is not exhaustive and represents only a selection of lawsuits against Fairway.
• These are merely accusations, and Fairway has the right to defend itself in court.
• Legal matters are complex, and this information should not be construed as legal advice.
• Consumers should always conduct thorough research and seek professional guidance before making financial decisions involving mortgage lenders.

By understanding the nature of these lawsuits and the allegations raised, consumers can be more informed about potential risks and make educated choices when selecting a mortgage lender. However, it’s crucial to remember that legal proceedings often take time, and the final outcomes of these cases may not be readily available.