Loan Modification

Massachusetts AG Obtains $4 Million in Settlement Over Subprime Mortgage Modifications

On December 21, 2018, the Massachusetts Attorney General’s Office (“Mass. AG”) announced that it had reached a settlement with a national mortgage servicer, resolving allegations that the company mishandled mortgage loans in violation of the Massachusetts Act Preventing Unlawful and Unnecessary Foreclosures, a 2012 law designed to protect borrowers from foreclosure caused by unfair terms on subprime mortgages….

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Ohio AG Files Complaint Against California Loan Modification Companies Over Misrepresentations

​On November 6, the Ohio Attorney General’s Office (Ohio AG) announced that it had filed a complaint in Ohio state court against a California man and two companies he owned (the California Companies) for making deceptive promises in connection with loan modification assistance to consumers.  The California Companies contacted consumers and offered them loan modification services for purchase,…

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Arizona AG Obtains Judgment and Injunction Against Mortgage Relief Operation

On July 27, 2017, the Arizona Attorney General’s Office (Arizona AG) announced that it had obtained a judgment​ against an allegedly fraudulent mortgage relief company and its owner.  The company is alleged to have targeted homeowners who were considering defaulting on “upside down” mortgages.  The company purportedly promised to take over…

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North Carolina Attorney General Secures $377,000 in Settlement with Private Student Lender

​On March 27, 2017, the North Carolina Attorney General (“AG”) announced that it had settled a lawsuit filed in the Wake County, North Carolina Superior Court against a student loan company. As a result of the settlement, the parties filed a consent judgment requiring that the company pay $377,048 in restitution…

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FTC Secures $19.4 Million in Judgments Over Mortgage Relief Scheme

FTC

On January 11, 2017, the Federal Trade Commission (FTC) announced that it had agreed to two stipulated orders (available here and here) with individuals who participated in an alleged fraudulent mortgage relief scheme.  According to the FTC, the individuals promised consumers “at least $75,000” or complete relief on their mortgages through a “mass joinder lawsuit.”  The…

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Pennsylvania AG Sues Financial Services Company for Defrauding Veterans

On May 5, 2016, the Pennsylvania Attorney General announced the filing of a civil lawsuit in the Clinton County (PA) Court of Common Pleas against an Ohio financial services company and its owner for misleading at least four Pennsylvania consumers, including three military veterans.  The lawsuit states that the company catered specifically to…

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