Ramsden Inc., headquartered in McKinney, Texas, has filed suit in the U.S. District Court for the District of Utah Central Division accusing GMAC Bank and CMG Mortgage Services of infringing its U.S. patent titled ‘System and Method for Paying Down Debt Using an Equity Loan Revolving Line of Credit.’
According to Ramsden's lead counsel, James B. Belshe, GMAC Bank and CMG Mortgage Services have infringed and continue to infringe by making, using, selling and/or offering to sell – or allowing others to sell – products covered by Ramsden's patent. Belshe said Ramsden has asked the court for trial by jury, damages, an order preventing further use of the loan product and attorneys' fees.
Ramsden President and CEO John D. Fry is a former president and CEO of CMG Funding in Salt Lake City, Utah, and is credited as the creator of the patent.
"Most loan programs have appealed to borrowers by leveraging them into larger loans, by taking cash out or adding on consumer debt every time there is a drop in interest rates – all the while extending out further and further the day when the homeowner is free and clear of the mortgage," Fry comments. "My patent has a spreadsheet model, which demonstrates paying off a homeowner's mortgage in as little eight to 12 years, while maintaining the mortgagor's necessary cashflow needs and protecting the lender's investment through rapid amortization."
SOURCE: Ramsden Inc.