Mutual of Omaha Mortgage Predatory Lending Complaint

1.Initial Application (October 18, 2023): On October 18, 2023, the Complainant submitted an initial mortgage application to Mutual of Omaha Mortgage through Mr. Rob Shell. The application concerned financing for 700 N Dupont Ave, Units 512 and 514, Madison, Tennessee. [WITHHELD - complainant-associated entity names.]

2.Representation of Limited Loan Options: At the time of application, Mr. Shell represented that only one loan program was available - a non-qualified mortgage (non-QM), interest-only product with an approximate interest rate of 10 percent. The Complainant states that they were forced to purchase a rate buydown. When the Complainant requested alternative options or lower rates, Mr. Shell repeatedly stated, "this is the only option."

3.Failure to Provide Comparable Loan Products or Rate Sheets: No rate sheets, loan comparisons, or alternative products were provided as required under federal lending law. This omission prevented the borrower from evaluating reasonable alternatives or obtaining a fair loan structure.

4.Regulation Z Violations (Steering and Compensation Bias): Under the CFPB's Regulation Z (12 C.F.R. 1026.36(e)), mortgage brokers are prohibited from steering a consumer to a transaction based on higher compensation to the originator. Brokers must provide loan options including: (i) the lowest interest rate for which the borrower qualifies; (ii) the lowest total origination points or fees; and (iii) the lowest rate available. Mr. Shell's actions failed to meet these requirements and directly violated federal anti-steering rules.

5.Disclosure Timing and TRID Noncompliance: Although the required Loan Estimate and Closing Disclosure were eventually provided, they were delivered outside of the mandated sequence and timeframes required under TILA, RESPA, and the TRID Rule (12 C.F.R. 1026.19(e)). This delay deprived the Complainant of sufficient time to review loan terms before closing, constituting a procedural violation of federal disclosure standards.

6.Processing and Undisclosed Loan Assignment: The loans were underwritten and funded through NewFi Lending and later sold to Planet Home Lending. This transfer of servicing and funding was never disclosed before closing, violating TILA's transparency requirements.

7.Predatory Loan Structure and Impact: The non-QM loan terms, if held to maturity, would yield an effective total interest burden approaching 200% of the principal balance, resembling hard-money lending standards. This structure represents a pattern of predatory lending inconsistent with conventional underwriting norms.

8.Evidence of Misrepresentation - Subsequent Transactions: Following these transactions, the Complainant successfully obtained two conventional 30-year fixed-rate loans on comparable properties at 7.125% interest through Capital Fund One (Brentwood, TN). This demonstrates that the borrower did, in fact, qualify for standard financing options - directly contradicting Mr. Shell's earlier assertions that only non-QM products were available.

A. Violations of the Truth in Lending Act (15 U.S.C. 1601 et seq.): Failure to provide the Loan Estimate and Closing Disclosure in the proper sequence and within the required statutory periods as mandated under Regulation Z 1026.19(e)(1)(i), thereby violating federal timing and consumer-disclosure obligations; misrepresentation of APR and total cost of credit; and failure to disclose material terms prior to consummation.

B. Violations of the CFPB Anti-Steering Rule (Regulation Z 1026.36(e)): Steering the borrower toward a high-cost, non-qualified product for broker and lender compensation; failing to present three qualifying loan options as required by federal law; and engaging in conduct that the complaint characterizes as fraud, misrepresentation, and predatory lending.

C. Violations of the Real Estate Settlement Procedures Act (12 U.S.C. 2607(b)): Participation in or facilitation of unearned fees, kickbacks, or other referral-based compensation prohibited by RESPA Section 8.

1.Conduct a federal investigation into the lending practices of Robert Hillman Shell (NMLS ID #2226086), Mutual of Omaha Mortgage, and NewFi Lending.

2.Determine whether the Respondents violated federal lending laws, including TILA, RESPA, Regulation Z, and UDAAP provisions of the Dodd-Frank Act.

3.Enforce administrative penalties, restitution, and corrective measures as appropriate.

4.Refer findings to the Tennessee Attorney General and HUD's RESPA Enforcement Office for parallel action where warranted.

1.Callahan Neuroth - Mortgage Loan Originator Assistant, NMLS ID 2471027, affiliated with Mutual of Omaha Mortgage. Role stated in the complaint: assisted Mr. Rob Shell during loan processing and correspondence related to the loan structure.

2.Vicki Smith - Legacy South (Builder Representative), identified in the complaint as an affiliate broker and new home sales counselor. [WITHHELD - direct phone and email fields.] Role stated in the complaint: facilitated contract documentation and closing coordination; required $10,000 earnest deposits per property and warned that withdrawing from the loan would result in forfeiture; ceased all communication after discussions regarding potential filings against Mr. Shell.

3.Mackenzie Curtis - Regional Vice President, Builder Division, affiliated with Mutual of Omaha Mortgage, NMLS ID 471956. [WITHHELD - direct phone and email fields.] Role stated in the complaint: contacted on August 24, 2025 and provided rate options and loan structures that the complaint characterizes as confirming that conventional products were available, contradicting Mr. Shell's prior statements.

4.Andrew DeGood - Inglet Blair (Audit Division), identified in the complaint as an auditor and risk management liaison. Role stated in the complaint: established a contract for compliance audit and due diligence review; initial contact occurred on November 18, 2024; served as liaison for audit communications between Inglet Blair and the Complainant.

5.Michael Jackson - NewFi Lending, identified in the complaint as Vice President and Regional Sales Manager for NewFi Wholesale. [WITHHELD - direct phone, email, and non-central private address fields.] Role stated in the complaint: oversaw compliance communications for NewFi Lending. [PRIVATE CORRESPONDENCE SUMMARIZED: NewFi declined disclosure and document requests on confidentiality, proprietary-information, and third-party-report grounds.] The complaint characterizes that refusal as further support for allegations of nondisclosure and concealment.