6th Circ. Finds Lenders Are Obligated To Disclose Broker Fees

Law360, New York (August 13, 2012, 4:47 PM EDT) -- The Sixth Circuit on Monday found that Ohio law requires lenders to disclose mortgage costs to borrowers, finding that a Bank of America NA unit defrauded borrowers by helping to hide loan premiums as part of a civil conspiracy with a mortgage broker.

In a subprime mortgage case brought by Raymond and Janet Lee against Countrywide Home Loans Inc. and its parent company, the Sixth Circuit reversed a lower court's finding that Countrywide had not engaged in civil conspiracy when it failed to disclose the yield...
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