AUGUSTA (AP) – Maine’s attorney general has filed a lawsuit against a South Portland mortgage lender charging the company and two employees with engaging in unfair and deceptive practices.

Attorney General Steve Rowe filed the complaint against Downeast Mortgage Corp., Commercial Street Capital LLC, James Lindvall, who is a principal in both companies, and loan officer Catherine Campbell.

The complaint states that a Casco couple applied for a loan with Downeast Mortgage in 2005 but did not qualify. The company and its employees then steered the applicants to a commercial loan and created a commercial limited liability corporation for the sole purpose of obtaining the loan, according to the suit.

The company and the couple persuaded the borrowers’ aunt and uncle to guarantee the loan without explaining the terms of the guarantee, according to the complaint. The loan is now in foreclosure.

“Mortgage loans should only be made when the consumer qualifies, is informed of the terms and has the ability to repay the loan,” Rowe said.

AP-ES-10-09-07 1631EDT


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