ORLANDO, Florida – The largest homebuilding firm in the United States, with many projects in the Lowcountry, is facing a federal lawsuit over allegations that it conceals the full monthly cost of house ownership.
The case, filed in Florida, argues that D.R. Horton and their chosen lender, DHI Mortgage, purposely remove the full cost of needed property taxes from payment calculations.
The action says that by doing so, D.R. Horton can provide falsely low monthly mortgage payment quotations, leading consumers to believe their home will fit into their monthly budget.
Those purchasers report they don’t realize the true monthly cost until after closing, when their monthly mortgage payment rises by hundreds of dollars.
The lawsuit contends that this approach enables the corporation to sell their homes as more inexpensive than competitors’ properties by changing the revealed tax component to make higher-priced residences appear affordable.
One of the defendants in the suit claims he chose a D.R. Horton home with a projected monthly payment of $2164.68, but the cost increased to $3136.33 when his new mortgage servicer performed an escrow analysis that included all of his property taxes plus delinquent taxes.
Other defendants claim they were given a monthly payment of $2,602.47, which they accepted since it was less than other residences with comparable sales prices they were evaluating. They claim the monthly payment jumped to $3,439.07 after their new mortgage servicer performed an escrow analysis.
D.R. Horton replied to the charges by stating, “D.R. Horton and DHI Mortgage (DHIM) strongly disagree with the claims made in this lawsuit, and we intend to vigorously defend against them.” D.R. Horton and DHIM have been and will continue to be unshakable in their commitment to transparency with their clients.”
