By Moe Bedard
Yet another Attorney General has gone public about foreclosure consultants in his state. Missouri Attorney General Chris Koster is fed up with scams perpetrated by foreclosure consultants and mortgage brokers in his state. Koster seems enraged, suing firms from California to Ohio for misleading lending practices and misleading foreclosure relief services. In one case, Koster claims a mortgage broker actually tried to pass themselves off as an agent of the federal government.
I don’t know about you but in this legal climate you’d have to either be pretty stupid or pretty arrogant to think trouble wouldn’t catch up to you if you posed as an agent of the federal government. In my opinion these Attorney General’s from around the country that are making headway in suits against brokers and foreclosure consultants will eventually collaborate on much needed legislation to force the lending and loan modification industry to follow much tougher standards. Perhaps, lending and loan modifications will only be handled by lawyers or if not lawyers then these types will need to go through a tough screening process, be required to maintain huge liability policies and may face serious prison time for false advertisement. Who knows. All I can tell is that trouble is brewing in the industry and anyone associated with it should see tougher enforcement coming their way.
From Forbes:
Koster urged consumers to be skeptical of any mail related to mortgage refinancing, foreclosure relief or loan consolidation. He recommended they check with their bank or the attorney general’s consumer protection division. He also said he wants consumers to send him the offers they receive in the mail.
Koster said he filed a lawsuit last week in a California mortgage rescue scam in which consumers were told to pay $2,000 upfront but received little or no services.
From KansasCity.com
The suits against Gold Star and Oxford include examples of the letters sent by the firms. In Gold Star’s case, the letter contained the name of the recipient’s bank at the top and was purportedly signed by a “Senior FHA Specialist.” In Oxford’s case, the letter had an official looking “Economic Stimulus Act 2008” legend at the top and the logo and name of the Federal Housing Administration at the bottom.
MERCI FOR YOUR FEED.
PRESUME YOU MENTIONED MY WEBSITE/BLOG, THUS THE LARGE NUMBER OF HITS FROM THIS SITE
BTW:: MANY ARTICLES IN THE ARCHIVES AT THE SMART MONEY THAT WARRANT READING/ATTENTION.
TUTORIALS, PAPERS, CHARTS, COMMENTARY ABOUT HOT TOPICS.
MERCI ENCORE,
AL HERTER
Abhorrent practices by lenders within the mortgage industry are called abusive lending. There are some guides for you to identify those blabbermouth swindlers.Think first before biting. And it might be necessary to contact an attorney in your particular state to learn more about this kind of abusive lending.
My husband and I got a loan modification contract from our lender. We have a lower interest rate and lower house payment now. We were not behind on the payment but they offered us this deal. Now they are calling us every day and recently have started to say they are in pre forclosure of our house, we haven’t missed payments, we’ve done everything they’ve told us we needed to do. I don’t know what the deal is, they just keep saying when they call that, ok, you are right, you filled out this paperwork and everything is in order that they’ll fix the problem and stop calling for us not to worry but this is our house! They haven’t fixed it and call several times a week, and have for the past few months.