Home loan servicer Statebridge Company is facing a class action lawsuit for allegedly attempting to illegally collect time-barred second mortgages.
The plaintiff, Corey Stepney, accuses the company of misrepresentation and intimidation in its attempts to collect from her a time-barred second mortgage loan.
The case, filed in Cook County Circuit Court on Jan. 26, alleges violation of the Fair Debt Collection Practices Act (FDCPA) against Colorado-based Statebridge.
According to the complaint, Stepney obtained an "80/20" mortgage loan secured by her home in 2005. The loan allowed borrowers with subprime FICO scores to take out two loans simultaneously to purchase or refinance a home: a first lien loan to typically cover 80% of the purchase price, and a second lien loan, which typically equals 20% of the purchase price.
In 2023, Stepney received notice that servicing of her second mortgage was being transferred from Veripro Solutions to Statebridge Company LLC, according to the complaint. The lawsuit arises from Statebridge's alleged subsequent attempts to collect on this loan.
Stepney is represented in the action by attorneys Daniel A. Edelman and Dulijaza (Julie) Clark, of Edelman Combs Latturner & Goodwin, of Chicago.