AG shuts down two mortgage originators

Massachusetts Attorney General Martha Coakley’s office announced Wednesday that it has secured a preliminary injunction against two mortgage originators accused of deceptive mortgage practices.

The injunctions prevent Option One Mortgage Corp. and H&R Block Mortgage Corp. from initiating or advancing foreclosures on loans that may have been secured using unfair business practices. The Attorney General’s office filed suit against the two companies alleging they originated thousands of subprime mortgages in the state when the companies knew the customers would not be able to afford the loans. It also alleges that the companies discriminated against minority borrowers in Massachusetts by charging them higher points and fees to close their loans than white customers.