A lender sued a mortgage broker for allegedly selling the lender a loan package that did not meet Fannie Mae’s requirements. According to the lender, the broker signed an agreement that made it liable for errors on the loan documents, while the broker argued that the error was made by the lender on the HUD-1 Settlement Statement. The court denied the lender’s motion for summary judgment, finding that there were factual issues regarding the errors to the closing documents.
Flagstar Bank filed a breach of contract suit against John Estrella who was doing business as Able Mortgage Co.
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