NCAG Cooper Sues Mortgage Company for Charging for Services it Never Provided

NCAG Cooper Sues Mortgage Company for Charging for Services it Never Provided
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January 30, 2015

North Carolina Attorney General Roy Cooper this week filed a complaint against a Zebulon-based mortgage broker that took thousands of dollars in upfront fees, but never refinanced home loans.

The complaint alleges that Carolina Mortgage Group and its primary owner, Jeffrey Cox, violated state laws by promising homeowners lower interest rates, charging for services and then failing to do the job.

The complaint asks that Carolina Mortgage Group be barred from the mortgage business and pay refunds to consumers.

Cox told consumers he could help them refinance loans on their homes and other properties for a low interest rate and close on the new loans in as little as 30 days. He asked consumers to pay him an origination or lock fee of about one percent of the total amount of their mortgage and also asked them to pay for an appraisal. But once consumers paid the fees, Cox failed to close on the refinancing, claiming various reasons for the delays. When the refinancing never happened and consumers wanted their money back, Cox refused.

This isn't the first time Cox and Carolina Mortgage have had court complaints filed against them. Cox and his company have been working without mortgage licenses since August 2014. They were also ordered to pay more than $90,300 in penalties and $36,300 in consumer refunds. Cox also faces criminal charges in Wake County for obtaining property by false pretenses and residential mortgage fraud.

Five people registered complaints with Cooper's office, including a Wake Forest couple that paid $10,485 to refinance their homes and investment properties only to miss out on a better deal with their bank because of delays. Nearly a year after shelling out about 10,000 in fees, a Raleigh man is still waiting to have his loans refinanced.

The North Carolina Office of the Commissioner of Banks received 15 complaints about Cox and his company between July 1, 2013 and April 30, 2014.

More information about licensed mortgage brokers or to file a complaint, contact the Commissioner of Banks. To file a complaint about any other business, contact the North Carolina Attorney General's Office.