Thursday, January 22, 2015

Zebulon man accused of mortgage scam


A Zebulon mortgage broker is accused of failing to refinance home loans and pocketing thousands of dollars in fees, the Attorney General's Office said Thursday.

Attorney General Roy Cooper filed a complaint late Wednesday in Wake County Superior Court against Carolina Mortgage Group and its president and primary owner Jeffrey D. Cox for violating state laws against unfair business practices.

“Homeowners trying to get a better interest rate shouldn't get ripped off,” Cooper said. “Taking money upfront and then failing to do the job is against the law, so we must take action.”

The mortgage broker previously had offices in Zebulon and Wilson. The Attorney General is asking the court to permanently ban the defendants from the mortgage loan business in North Carolina and order them to pay refunds to consumers and civil penalties.

The complaint claims that 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 a fee of about 1 percent of the total amount of their mortgage and also asked them to pay for an appraisal.