Nebraska Attorney General to File Suit Against Advantage Mortgage Inc. Alleging Predatory Lending Practices

Nebraska AG Jon Bruning and the Director of the Nebraska Department of Banking and Finance (NDBF), John Munn, announced Friday in a press release that they are suing Omaha-based Advantage Mortgage Service, Inc., a mortgage brokerage firm, and its principal owners and operators for predatory lending practices. The NDBF is also instituting license revocation proceedings. Advantage Mortgage originates and refinances loans for individuals, often targeting those with adjustable interest rates.

A NDBF investigation found that Advantage Mortgage participated in unfair and deceptive business practices in the origination and refinancing of home mortgage loans for its customers. Based on the Department's investigation, the complaint alleges that Advantage Mortgage used tactics such as falsifying closing documents, forging borrowers' signatures on loan documents, and charging hidden and excessive brokerage fees to borrowers.

The complaint also charges that Advantage Mortgage loan officers made false representations to consumers concerning the length, duration and cost of refinancing their mortgages and that Advantage Mortgage did not disclose material facts to its customers before refinancing their loans.

Bruning and Munn allege that the company presented a deceptive promotional spreadsheet to borrowers to demonstrate the "savings" consumers would see upon enrollment in Advantage's programs. Instead, consumers were subjected to higher interest rates and paid as much or more per month to reduce their debt.

The state also alleges that Advantage Mortgage purposefully hired a person convicted of felony financial crimes to work as a loan officer. This person allegedly financed over $11 million in loans and Advantage Mortgage profited financially from this person's illegal and fraudulent activity.

According to Bruning, "Advantage Mortgage preyed on Nebraskans who dreamed of providing better lives for their families; instead, those families face a very real threat of losing their homes. We will not tolerate predatory lending in this state."