October 9, 2007
AG sues Downeast Mortgage
Maine Attorney General Stephen Rowe recently filed a lawsuit against a South Portland mortgage lender citing "unfair and deceptive practices" related to a loan now in foreclosure, according to a press release.
The AG filed the suit against Downeast Mortgage Corp.; Commercial Street Capital LLC; James Lindvall, a principal in both companies; and Catherine Campbell, a loan officer. The complaint says that in late 2005 Kyle and Melissa Wilkinson were directed by employees of Downeast to create a commercial LLC, KW Properties, with Downeast and Commercial Street Capital in order to take out a commercial loan because they did not qualify for a home loan. The AG also alleges the lenders and the couple persuaded the Wilkinsons' aunt and uncle to guarantee the loan without explaining the terms of the guaranty.
Downeast was founded in 1987 and operates offices in Maine, New Hampshire and Massachusetts, according to its website. The company claims to be the state's leading lender of federal housing administration, U.S. Dept. of Veterans Affairs, and Maine State Housing program home loans.
"This case is illustrative of some of the pernicious practices that contributed to the current foreclosure crisis," Director of the Office of Consumer Credit Regulation Will Lund said, according to the press release.
The AG filed the suit against Downeast Mortgage Corp.; Commercial Street Capital LLC; James Lindvall, a principal in both companies; and Catherine Campbell, a loan officer. The complaint says that in late 2005 Kyle and Melissa Wilkinson were directed by employees of Downeast to create a commercial LLC, KW Properties, with Downeast and Commercial Street Capital in order to take out a commercial loan because they did not qualify for a home loan. The AG also alleges the lenders and the couple persuaded the Wilkinsons' aunt and uncle to guarantee the loan without explaining the terms of the guaranty.
Downeast was founded in 1987 and operates offices in Maine, New Hampshire and Massachusetts, according to its website. The company claims to be the state's leading lender of federal housing administration, U.S. Dept. of Veterans Affairs, and Maine State Housing program home loans.
"This case is illustrative of some of the pernicious practices that contributed to the current foreclosure crisis," Director of the Office of Consumer Credit Regulation Will Lund said, according to the press release.
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