Arizona Lender Sued for Issuing Adjustable Rate Loans Without Highlighting Risks

By Kyle Chezum Updated on 11/1/2010

11/01/2010

Arizona lender Home Loan Center, Inc., has settled with Arizona Attorney General Terry Goddard for $1.15 million over alleged false advertising.  According to Goddard, Home Loan Center falsely represented payment option adjustable rate mortgage loans to its customers by offering low teaser rates and declining to mention the downsides of the mortgage packages.  Goddard called these loans "dangerous" and has stated that he plans to continue prosecuting lenders who offer them without proper risk disclosure.

Home Loan Center has stated that it may still offer such loans in the future but that it will consult with the Attorney General to determine what amount and form of disclosure would be preferred before doing so.

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