Home buyers sue over real estate loan fees

In the last few years, pre-payment penalty loans have become much more common. It will be interesting to see how the trend pans out.

“A class-action lawsuit against a group of New York banks for allegedly charging improper fees for early mortgage loan prepayment could result in millions of dollars in refunds to New York home buyers.

The lawsuit was filed in U.S. District Court by former New York Attorney General G. Oliver Koppell and New York law firm Whalen & Tusa. It alleges that Astoria Financial Corp. and associated banks routinely demand what are, in essence, fees for paying off mortgage loans – either by sale or refinance – before the due date.”
Inman Real Estate News – Home buyers sue over real estate loan fees