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FDIC sues Amerifund on behalf of Downey S&L

The Federal Deposit Insurance Corp., receiver for Downey Savings & Loan Assn., has sued Amerifund Financial Inc. and affiliated individuals in federal court seeking more than $1 million in damages.

The FDIC alleges breach of contract, professional negligence and civil fraud in the complaint against Amerifund, a mortgage broker, filed June 3 in U.S. District Court in Santa Ana.

Amerifund, based in Spring Valley, Calif., and its agents, processing mortgages for Downey in 2004 and 2005, “caused borrowers’ financial statements to be altered or misstated” in loan applications, the FDIC said. Had true income and debts been disclosed, borrowers wouldn’t have qualified for Downey loans, according to the complaint.

Downey Financial Corp., the S&L’s parent, sought Chapter 7 liquidation in U.S. Bankruptcy Court in 2008, citing as much as $50 million in assets and $500 million in debts. U.S. Bancorp subsequently acquired Downey.

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Amerifund’s phone number was not in service and company owner Eric M. Anderson couldn’t immediately be located for comment.


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