Suit Accuses Norwest of Overcharging

A class-action lawsuit filed in Riverside County Superior Court accuses property lender Norwest Mortgage Inc. of overcharging homeowners through undisclosed mark-ups on credit reports and other closing services. The complaint was filed by lawyers from Los Angeles, Minneapolis and Washington state on behalf of Norwest customer Norma Saunders and “hundreds if not thousands” of other borrowers who are entitled to repayment of overcharges, the suit contends. It says that Saunders, for example, was charged $26.50 for a credit report and was not told the credit bureau charged Norwest $14 for the report. A Norwest spokesman said company officials had not seen the complaint and could not comment on the specific allegations. But he said Norwest “has a long-standing company policy against marking up any and all third-party costs.” Norwest, a California corporation with headquarters in Des Moines, has more than 750 branch and regional offices and originated $51.5 billion in home loans in 1996, according to the complaint.