A lender in Florida recently took legal action against a construction company for allegedly violating its mortgage loan provisions.
The complaint, filed in U.S. District Court, Florida, claims that the company did not meet the conditions of its FHA-insured loan and therefore failed to make the loan, according to The Florida Times-Union.
The company’s FHA loans are only insured by the Federal Housing Administration, and the FHA does not provide direct loan guarantees to FHA borrowers.
According to The Times-Utitlv, the lender alleged that the construction company, LEX Corporation, violated the federal requirements of the FHFA for building the building by failing to obtain a building permit, failing to comply with the requirements of FHA regulations and the company’s failure to perform any of the requirements for an insured loan.
According the complaint, Lex Corp. “failed to make every reasonable effort” to obtain the necessary permits, which included having a construction inspector check on the building and performing a background check on each contractor.
According To The Times Union, the building inspector did not find any violations of any of these regulations, and did not perform any inspection of the building before the building was completed.
The construction company then “failed, to a considerable extent, to maintain its FHSA-insured mortgage loan,” the complaint stated.
According The Times U, the company paid the lender a total of $1,500,000 for the violation.
The lawsuit was filed on November 18, and it was filed in federal court in Miami.LEX Corporation’s CEO, Daniel Cappelli, said in a statement that the lawsuit was “absolutely false and misleading.”
Cappelli told the Times-U that the FHCAA requires a contractor to get approval for every project before they can be built.
He added that LEX was unable to obtain that approval for the building project, and so “we could not do it.”LEX Corp. has been in the business of building and maintaining commercial buildings for more than 50 years, according its website.