This class action concerns the kinds of fees mortgage servicers are permitted to add to payoff statements, and how those fees may be figured. The complaint sues Gregory Funding, LLC for two fees added to its payoff statement, alleging that the wire fee should not have been added and that the reconveyance fee is excessive.
The National Class for this action is all persons in the US who either (1) were charged a wire fee by Gregory Funding to pay off their mortgage or (2) were charged a wire fee or reconveyance fee by Gregory Funding before the fee occurred or otherwise existed. A Florida Class has also been defined, which is identical to the National Class except for the persons being in Florida.
In January 2006, the plaintiff in this case, Ingrid Connelly, took out a mortgage loan on a property in Port St. Lucie, Florida. In July 2019, she executed a loan modification agreement. After that, because of financial hardship, she defaulted, and foreclosure proceedings were begun. At some point after that, Gregory Funding received the rights to service the loan.
Sometime around August 2021, Connelly asked Gregory for payoff figures. Gregory sent a Payoff Statement that included a wire fee of $6 and a “reconveyance fee” of $20. Both fees are included in the payoff amount, but the complaint alleges that both these fees are questionable.
The complaint alleges that Gregory is charging Connelly the wire fee “to receive the wire, which is a fee that is not authorized by the mortgage agreement, [or] servicing guidelines, [and not] permitted by law.”
According to the complaint, Gregory knows full well that the mortgage agreements it services, including Connelly’s, do not permit it to charge the wire fee. Also, the complaint alleges that Gregory is not permitted to charge fees “that it has not incurred, or that were estimates.”
As to the “reconveyance fee” on the payoff statement, the complaint says that it is not explained but speculates that it is a recording fee, to be paid to the county recorder for the recording of the satisfaction of the mortgage and the releasing of the lien from the property. This fee is not prohibited under Florida law, and the complaint asserts that “the mortgage agreement provides that the Borrower shall pay any recording costs associated with releasing the lien. However, only actual recording costs are allowed.”
Recording fees are set by the county which records the document. The complaint alleges that the recording fee at issue is $10 for the first page and $8.50 for each additional page, and it claims that the document in this case is only one page long. The recording fee, it claims, should therefore be only $10.
The laws the complaint cites as violated by these charges include the Fair Debt Collection Practices Act, the Florida Consumer Collection Practices Act, and the Florida Deceptive and Unfair Trade Practices Act.
Article Type: LawsuitTopic: Loans
Most Recent Case Event
Gregory Funding Payoff Statement Fees Not Yet Incurred Complaint
December 14, 2021
This class action concerns the kinds of fees mortgage servicers are permitted to add to payoff statements, and how those fees may be figured. The complaint sues Gregory Funding, LLC for two fees added to its payoff statement, alleging that the wire fee should not have been added and that the reconveyance fee is excessive.
Gregory Funding Payoff Statement Fees Not Yet Incurred ComplaintCase Event History
Gregory Funding Payoff Statement Fees Not Yet Incurred Complaint
December 14, 2021
This class action concerns the kinds of fees mortgage servicers are permitted to add to payoff statements, and how those fees may be figured. The complaint sues Gregory Funding, LLC for two fees added to its payoff statement, alleging that the wire fee should not have been added and that the reconveyance fee is excessive.
Gregory Funding Payoff Statement Fees Not Yet Incurred Complaint