Norwest Sued Over Credit Report Charges

Norwest Mortgage Inc., Des Moines, Iowa, is being sued in a Riverside, Calif. court by a borrower who alleges that the company charged her $26.50 for a credit report the lender obtained for $14.The plaintiff, Dr. Norma Breslaw Saunders, is seeking to make this a class action lawsuit. A spokesperson for Norwest Mortgage said the company had not seen the complaint so was unable to comment on the specific allegations. "We can confirm, however, Norwest Mortgage has a long-standing company policy against marking up any and all third-party costs, including fees for closing services," the spokesperson told MortgageWire. Jordan M. Lewis, one of Dr. Saunders's lawyers, said thousands of borrowers in California and nationwide may have been affected by Norwest's actions. He further claimed that some lenders and loan brokers mark up charges paid to third-party providers and conceal this by failing to disclose to the borrower the actual cost.