Diversified Financial and its owner have skirted residential mortgage requirements and disclosures by writing up loans as “commercial.” But a Pierce County, Wash., judge pro tem determined that the lender misrepresented a residential loan as commercial and ordered a payment to the borrower of $211,538. A judge in another county ruled that the lender’s actions were in “bad faith,” ordered $110,932 in damages and awarded the borrower the home back free-and-clear.

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