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Eight named
plaintiffs will represent Washington homeowners who received such
loans from NovaStar. The plaintiffs assert that they were
charged higher interest rates because NovaStar secretly agreed to pay
mortgage brokers thousands of dollars to negotiate higher interest
rate loans. The higher the interest rate, the more NovaStar paid
the mortgage broker. These incentive payments that NovaStar made
to brokers in return for higher interest rate loans are called "yield
spread premiums." Judge Bryan found that the case is suitable
for class action treatment which will enable plaintiffs and the Class
to prosecute the claims of over a thousand borrowers.
Said Ari Brown,
one of the plaintiffs' lawyers, "This is an important decision for
borrowers who obtained these home loans from NovaStar. Most of
them don't even know their rights have been violated. Now, not
only will they discover they had rights to bargain for a lower
interest rate loan, but well be able to pursue claims for them and, we
hope, get them the deal they should have gotten in the first place."
The Seattle attorneys
representing plaintiffs and the Class are are Ari Brown of Bergman and Frockt,
and John W. Phillips
and Matt Geyman of Phillips Law Group, PLLC. To learn more about
the NovaStar case, please call Ari Brown at (206) 957-9510 or Matt
Geyman at (206) 382-1168.
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would like us to review your
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