Suing over excess loan fees

Law of the Land

In the case Thomas et al. v. US Bank et al., several Missouri homeowners received high loan-to-value-ratio second mortgages from an originator, up to 125 percent of the appraised value of their homes. The mortgages were later sold to various lenders.

After the originator, FirstPlus Bank, went out of business, the homeowners filed suit against the lenders, alleging that they were charged loan fees in violation of the Missouri Second Mortgage Loan Act (MSMLA), which regulates lending practices on second mortgages secured by homes located in Missouri.