FHA ACCUSED OF COLLECTING EXCESSIVE INTEREST

Blue Stephens & Fellers LLP has opened an investigation into allegations that the Federal Housing Administration (FHA) routinely collects unearned interest payments from borrowers who prepay their mortgage as the result of the sale or refinance of their home.  As reported in the Columbus Dispatch on April 3, 2011, if an FHA borrower sells his or her home and closes early in the month, the borrower is charged interest through the rest of the month.  According to the National Association of Realtors, from January 2000 through January 2004, FHA borrowers paid more than $1.375 billion in excessive interest.  In 2003 alone, FHA borrowers paid a total of $587,425,543 in excessive interest.

If you are a North Carolina resident who recently prepaid an FHA mortgage through the sale or refinance of your home, please contact us at info@bluestephens.com or (919) 833-1931.