Dallas firm put black homeowners at higher risk of foreclosure, suit alleges

Dallas equity firm Lone Star Funds is being sued by a group of black homeowners in New York who allege the company pushed them toward foreclosure by misleading them about their mortgages.

A 53-year-old plaintiff told a federal court that the company’s mortgage servicer would call him almost every day — sometimes two or three times a day — threatening foreclosure and pressuring him to accept an unfavorable change to his loan.

Lone Star’s mortgage servicer, Caliber Home Loans, disputed the allegations and called the lawsuit “without merit.”

The federal suit filed last week also targets the U.S. Department of Housing and Urban Development. At issue is the agency’s sale of delinquent mortgages backed by the federal government to private investors such as Lone Star.

Read on.

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