Judge Allows South Florida Homeowner to Sue Investors In Lawsuit Charging Financial Institutions With Mortgage Appraisal and Origination Fraud

Wells Fargo, Greenpoint Mortgage Funding, and Credit Suisse First Boston Mortgage Securities Corp. adjustable rate mortgage trust named as defendants.

MIAMI, FL, October 04, 2011 /24-7PressRelease/ -- A Miami-Dade Circuit Court Judge has granted Coral Gables, Fla. homeowner Pelayo Duran permission to include investors in his lawsuit charging Wells Fargo, Greenpoint Mortgage Funding and others with mortgage appraisal and origination fraud (Case #09-03703-CA). This development comes days after the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, sued 17 large banks and financial institutions over losses on about $200 billion of subprime bonds, as well as, AIG's lawsuit against the Bank of America claiming that it lost $10 billion in a "massive fraud."

"It's believed the defendants, just like in the other high-profile cases, fraudulently induced others to invest in mortgage-backed securities supported by scores of defective loans," said Duran. "Basically the defendants generated or acquired any loan, no matter how risky, that could be sold to third party investors. I was an unsuspecting victim who applied for a loan, but was duped into something else."
Duran alleges in his lawsuit that the fraud began when he tried to refinance his primary residence in 2005. He purchased the home in 2004 with an initial down payment of $100,000. Shortly after the purchase, Duran needed to access some of the down payment money to pay for a few personal and business obligations. Duran alleges that the Wells Fargo mortgage broker baited and switched him into a subprime home mortgage with Greenpoint.