American Financing Lawsuit Forced The Hand Of The Firm, The Effects Still Echoe In 2023
American Financing was founded in 1999 with the simple purpose of creating a customer-first experience when financing a property. American Financing is a family-owned and operated business. Their mortgage experts can provide any loan in the business – a critical advantage since every customer’s lending scenario is unique. It takes roughly 10 minutes to pre-qualify. You might save $500 to $1,000 each month on your refinance. Alternatively, you may get into a home with as little as $1,000 down, if not less. It is a polished class customer service with an A rating from the Better Business Bureau. But even this firm was once under a lawsuit.
American Financing Lawsuit was a Serious Deal
American Financing Corp., situated in Colorado, was forced to pay up after four former workers alleged that the firm dismissed them for seeking to expose rampant mortgage fraud at the company in 2018 with a lawsuit.
In 2017, the four former workers filed a lawsuit against American Financing, alleging that they attempted to tell their superiors about fraudulent practices at the firm. According to the lawsuit, the corporation used forged papers and withheld adverse financial facts on behalf of clients in order to generate mortgages that would not have been granted otherwise. According to the lawsuit, the business misled Flagstar Bank, JPMorganChase, Wells Fargo, and others.
According to the Denver Post, the lawsuit proceeded through the Colorado legal system, and a jury awarded $37,000 to one of the former employees for the company’s acts. The claims of the other three employees were refused.
How did the Impact of the American Financing Lawsuit Reverberate in 2023?
American Financing was accused of fabricating loan documents, forging signatures, hiding unfavorable financial information about an applicant, and failing to meet important dates, all of which are critical in determining whether a bank will accept or purchase an existing loan.
These accusations and the lawsuit made a great impact on the firm, as their public scoring dwindled for a while. But in 2023, American Financing is rated A+ on the Better Business Bureau site, as well as seen as a trusted firm on various corporate scoring organizations.