Downeast Mortgage is challenging allegations from the state Attorney General’s Office that it engaged in unfair and deceptive lending practices related to a loan now in foreclosure.
Attorney General Steven Rowe filed suit earlier this month against the company and two of its employees, saying they violated Maine’s Unfair Trade Practices Act by telling a couple that didn’t qualify for a home loan to set up an LLC and apply for a commercial loan instead.
In a statement released yesterday, company president James Lindvall said the allegations are “baseless” and that Rowe misstated the relationship between the company and its two clients.
