(Source: By Sarah Portlock / The Star-Ledger) – Seven unlicensed mortgage loan modification businesses are facing cease and desist orders from the state’s Attorney General as part of a crackdown on financial fraud schemes, the state Division of Consumer Affairs announced yesterday.The state is also seeking $35,000 in civil penalties and nearly $49,500 in consumer restitution for the approximately 10 consumers who paid fees for the services, according to a news release.

“The number of financial fraud cases that we’re seeing — particularly in the mortgage-modification arena — is substantial and growing a result, we believe, of the downturn economy and predatory enterprises looking to capitalize on the desperation of homeowners,” said Thomas Calcagni, director of the Division of Consumer Affairs.

Source: By Sarah Portlock / The Star-Ledger

Published: Wednesday, August 03, 2011, 8:00 AM

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