Calif. Court Revives Adjustable-Rate Mortgage Fraud Suit

Law360, New York (August 12, 2011, 2:05 PM EDT) -- A California state appeals court on Wednesday reversed the dismissal of adjustable-rate mortgage holders' suit claiming Home Loan Center Inc. issued loan agreements that glossed over the consequences of making scheduled payments that don't pay down loans.

The court sustained the defendant's dismissal motion earlier this year, and declined to give two mortgage holders, Clarence E. and Shirley C. Boschma and Sharon Robison, leave to amend their allegations of fraudulent omissions and violations of California's Business and Professions Code.

But in a ruling plaintiffs' counsel called...
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