Housing Finance (HF) has been ordered to pay Sh. 45 million to a borrower for charging them irregular fees and penalties on a mortgage loan.
The court under Justice Eric Ogola ruled that HF was wrong to sell Scholastica Nyaguthii Muturi’s two parcels of land after she had repaid more than double the Sh. 3 million she had borrowed from the mortgage lender in 1998.
The borrower had told the court that by 2010, she had repaid Sh. 8.4 million, but the mortgage lender was still demanding an additional Sh. 7.3 million. Apparently, HF had readjusted her loan to amount to Sh. 18 million.
It was then that HF sold her two parcels of land situated in Kiambu. HF sold one piece of land together with her home for Sh. 16 million.