LoanDepot Faces Claims It Misled Borrowers About Forbearance

LoanDepot.com must face a proposed class action by an Illinois man who alleged he was misled into believing his credit score wouldn’t be affected by accepting mortgage forbearance under a Covid-19 hardship law, a federal court said.

Samuel Lewis alleges that, during a phone call in late March or early April 2020, a loanDepot representative told him that putting his mortgage in forbearance following passage of the Coronavirus Aid, Relief, and Economic Security Act wouldn’t affect his credit.

On April 5, 2020, loanDepot sent Lewis a letter accepting his forbearance request.

But when Lewis began looking at refinancing options in ...