From the category archives:

Attorney General

Florida Attorney General Sends Big Banks a Message

by Moe Bedard

TALLAHASSEE, FL – Attorney General McCollum today sent a letter to the Florida executives of Bank of America, JP Morgan/Chase, Wells Fargo and Wachovia, calling upon the bank executives to provide homeowners with a fair and efficient loan modification process. The Attorney General also requested the executives meet with him to discuss the banks’ responsibility [...]

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Mass. Attorney General & American Home Mortgage Servicing Inc. Reach an Agreement

by Moe Bedard

Attorney General Coakley’s Office Reaches Affordable Loan Modification and Foreclosure Prevention Agreement with Mortgage Servicer

Purchaser Will Provide Affordable Loan Modifications to 8,000 borrowers
BOSTON – Today, Attorney General Martha Coakley’s Office announced that it has entered into an agreement with Texas-based American Home Mortgage Servicing, Inc. (“AHMSI”) that will provide significant benefits to approximately 8,200 Massachusetts [...]

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National Payment Modification Company & People’s First: Florida Attorney General Files Lawsuits

by Moe Bedard

McCollum Files Lawsuit Against Central Florida Companies for Loan Modification Scams

TALLAHASSEE, FL – Attorney General Bill McCollum today announced that his office has filed a lawsuit against two Central Florida companies and their owner over allegations they charged up-front fees for foreclosure rescue-related services. National Payment Modification Company and The Bostonian Group, LLC, which conducts [...]

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American Home Mortgage Servicing Inc. Files Lawsuit Against Ohio Attorney General

by Moe Bedard

COPPELL, Texas–(Business Wire)– American Home Mortgage Servicing, Inc. (AHMSI) filed suit today in Franklin County, Ohio, against the Ohio Attorney General to dispute unsupported allegations made in a pre-suit letter from the Ohio Attorney General`s office regarding the company’s mortgage loan servicing practices, including its customer service, loss mitigation, and loan modification activities, under the [...]

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Ohio Attorney General Sues American Home Mortgage Servicing Inc.

by Moe Bedard

Cordray Files Second Suit Against Mortgage Servicers – 11/5/2009
(CLEVELAND)—Ohio Attorney General Richard Cordray today filed a lawsuit against American Home Mortgage Servicing Inc. (AHMSI), a Texas-based company servicing more than 12,000 subprime and prime mortgage loans in Ohio. The lawsuit alleges numerous violations of the Ohio Consumer Sales Practices Act including but not limited to: [...]

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Florida Regulators React to Loan Modification Complaints

by Moe Bedard

With hundreds of Floridians filing complaints about troubles with their lenders over home mortgages, state and federal officials say they’re ramping up efforts to improve the process for borrowers who need a loan modification.
Florida Attorney General Bill McCollum’s office said it is spending $4 million over two years to fund free legal services to homeowners [...]

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California Attorney General Brown’s Letter to Banks & Loan Servicers

by Moe Bedard

The foreclosure crisis continues to plague California homeowners who are trapped in mortgages with exploding monthly payments. While the economy is beginning to improve, homeowners desperate to save their homes have seen little relief. And analysts predict that foreclosures will continue to worsen, particularly as Pay Option ARMs begin to recast.
Economists estimate that about one [...]

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California AG Brown Demands the Banks & Mortgage Servicers Foreclosure Plan

by Moe Bedard

Brown Calls on Banks and Loan Servicers to Detail Plans to Stem New Wave of Foreclosures
Los Angeles – Concerned about a “new wave” of foreclosures, Attorney General Edmund G. Brown Jr. today called on ten major banks and loan servicers to detail their plans to assist homeowners facing dramatic monthly payment increases on Pay [...]

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Hundreds of Florida Homeowners File Complaints Against Their Mortgage Servicers

by Moe Bedard

The Attorney General’s Office has logged 452 complaints about Bank of America, Florida’s largest mortgage lender, concerning mortgages and loan modifications. With its acquisition of Countrywide Financial last year, Bank of America had almost 82,000 mortgage loans outstanding in Florida worth $15.3 billion in 2008, according to National Mortgage News.
Next largest is JP Morgan Chase, [...]

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California AG Jerry Brown – CNBC: Pimping for State Street Bank?

by Moe Bedard

CNBC: Pimping for State Street Bank?
By Attorney General Jerry Brown October 21, 2009
When the suit was filed, we notified the media and held a press conference – to bring the fraud to light and to deter other financial traders from considering similar action. This is a routine part of prosecuting important corporate fraud cases.
But, in [...]

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Brown Sues State Street Bank for Massive Fraud Against CalPERS and CalSTRS

by Moe Bedard

SACRAMENTO – Seeking to recover more than $200 million in illegal overcharges and penalties, Attorney General Edmund G. Brown Jr. today announced that he has filed suit against State Street Bank and Trust — one of the world’s leading providers of financial services to institutional investors — for committing “unconscionable fraud” against California’s two largest [...]

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California AG Brown to announce massive lawsuit against major bank for defrauding CalPERS and CalSTRS

by Moe Bedard

Brown to Unveil Whistleblower Case Against Bank for Massive Fraud Against CalPERS and CalSTRS
Oakland – At a news conference on Tuesday at 10:00 a.m., Attorney General Edmund G. Brown Jr. will unveil a lawsuit against a major institutional bank for committing massive fraud against California’s two largest pension funds, CalPERS and CalSTRS.
The lawsuit seeks to [...]

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Arizona AG fines California loan modification firms BIG TIME

by Moe Bedard

The Arizona Attorney General’s Office has reached settlements with two Valley “foreclosure help” firms it filed complaints against this year as part of the national “Operation Loan Lies” crackdown on mortgage fraud.
Richard Winer, principal of the firm Taken Care of Investments, has agreed to pay fines totaling $691,000, half of which goes to consumers who lost [...]

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Nevada Attorney General’s Office has questions for NACA

by Moe Bedard

The program is put on by a national group called Neighborhood Assistance Corporation of America, or NACA. The group’s founder, Bruce Marks, is reporting a success rate that’s hard to believe.
“We’re currently going through the actual numbers from the lenders here but many thousands of people are doing that and over the next 30 days [...]

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Ohio AG Cordray Complaint Filed in Shareholder Lawsuit Against Bank of America

by Moe Bedard

(COLUMBUS, Ohio) – Ohio Attorney General Richard Cordray announced today that the Lead Plaintiff group in a securities class action lawsuit against Bank of America has filed a consolidated amended complaint.  The complaint alleges that statements made in 2008 by Defendants regarding the Bank of America merger with Merrill Lynch failed to disclose billions of [...]

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More Loan Mod Problems Reported: Arizona AG Terry Goddard: Complaints ‘Very Troubling’

by Moe Bedard

Valley resident Miguel Lozania said he was approved for a loan modification, so he signed his paperwork and sent the bank the $900 fee.
“It sounded like it was going to work,” he said. “I even got a letter from IndyMac Bank saying they were going to do a modification.”
IndyMac foreclosed on his house anyway, selling [...]

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Federal Government and State AG’s continue to take aim at mortgage fraud

by Moe Bedard

“A clear lesson of this financial crisis is that American consumers need better protection against fraud,” said Treasury Secretary Tim Geithner. “And while we will prosecute anyone who violated the law, going forward we will not wait for problems to peak before we respond. The Obama Administration is acting preemptively, across federal agencies and alongside [...]

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Brown Arrests Three Mortgage Brokers for Stealing Nearly $1 Million from Borrowers

by Moe Bedard

From the Califonia AG / Los Angeles- Continuing his fight against mortgage scams, Attorney General Edmund G. Brown Jr. today announced that agents from his office have arrested Michael McConville, and two of his associates for their roles in a “criminal conspiracy” to steal nearly $1 million from borrowers seeking to refinance their homes.
Schedule note: [...]

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Arizona attorney general concerned over Adjustbale Rate Mortgages

by Moe Bedard

“I am really worried. Most of the payment option plans are going to re-calibrate in the coming year and unless the mortgage lenders become a whole lot better at working with their clients and modifying loans, virtually all of those loans are going to turn into foreclosures. That frankly is the other shoe that could [...]

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Washington DC Attorney General Announces Settlement With Countrywide

by Moe Bedard

Washington DC Attorney General - Attorney General Peter J. Nickles today announced that the District has agreed to join a settlement with Countrywide Financial Corporation resolving claims by the District and other states that Countrywide engaged in unfair and deceptive practices in its home mortgage lending. 
By committing to the settlement, the Attorney General has ensured that [...]

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More mortgage servicers will be sued: Ohio attorney general

by Moe Bedard

COLUMBUS, Ohio (Reuters) – Ohio Attorney General Richard Cordray said on Tuesday he is plans to sue more mortgage companies over dealings with troubled homeowners in an effort to break the foreclosure crisis.
“We’re not looking for charity, what were looking for is good, solid customer service for Ohio’s homeowners,” he told Reuters in an interview. [...]

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Foreclosure scams priority: Ohio attorney general discusses to-do list, restoring order

by Moe Bedard

Each year, the Ohio Attorney General’s Office lists the most frequent consumer complaints. Traditionally, those complaints are the same — automobile titles and home contractor problems. But as the economy plummeted, his office was faced with fresh complaints.
“Brand new problems this year that are at the top of our list all have to do with [...]

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JPB Consulting Inc. / Mortgage Modification Solutions sued by Florida Attorney General

by Moe Bedard

Kissimmee Foreclosure Rescue Company Sued for Fraud
~ Company purportedly targeted the Hispanic community with foreclosure rescue scam ~
TALLAHASSEE, FL – Attorney General Bill McCollum today sued a Kissimmee-based company over allegations it targeted Hispanics in a foreclosure rescue fraud scheme. JPB Consulting Inc. and its president, Juan P. Bordali, allegedly charged up front fees of [...]

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Brown Forces Predatory Lender to End Illegal and Abusive Debt Collection Practices

by Moe Bedard

From the California AG Los Angeles – Attorney General Edmund G. Brown Jr. today forced CashCall, Inc., an Anaheim-based fast-money lender, to stop using “loan shark tactics” in collecting debt, including abusive calls at all hours of the day and night and empty threats of law enforcement action.
The court-ordered judgment also forces CashCall to stop misleading [...]

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Attorney General Coakley Reaches Affordable Loan Modification and Foreclosure Prevention Agreement with Purchaser of Fremont Servicing Rights

by Moe Bedard

Mass. AG Press Release BOSTON – Attorney General Martha Coakley’s Office has entered into an agreement with Texas- based Litton Loan Servicing LP (“Litton”) that provides significant benefits to approximately 1,100 borrowers holding loans originated by Fremont Investment & Loan (“Fremont”).  The Fremont loans were the subject of the Attorney General’s recently settled enforcement action [...]

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AG Warns Loan Modification Companies

by Moe Bedard

The attorney general sent out letters last week to 386 loan modification companies, ordering them to register with his office and post a $100,000 bond, or face criminal penalties and fines. He said none has posted a bond so far.
“If you pay these people, you’re not going to get it back. They’re not financially solvent,” [...]

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National Foreclosure Consultant Services – Sued by Indiana Attorney General

by Moe Bedard

Attorney General Greg Zoeller urges Hoosiers to avoid illegal foreclosure consultants
Zoeller recommends Indiana Foreclosure Prevention Network (1-877-GET-HOPE) for free and certified mortgage counseling
INDIANAPOLIS – A lawsuit filed today against National Foreclosure Consultant Services (NFCS) by Attorney General Greg Zoeller’s Homeowner Protection Unit (HPU) marks Zoeller’s eighth suit against illegal foreclosure consultants since taking office in [...]

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The loan modification business is officially dead

by Moe Bedard

Earlier this week California Attorney General, Gerry Brown placed a legal silver bullet in the hearts of hundreds of loan modification firms across the state. With one swift press release and a subsequent letter to the offending parties, Brown has put an end to California’s most recent gold rush.
This past Wednesday the Attorney General’s office issued a stern [...]

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Amerimod and owner sued by New York Attorney General

by Moe Bedard

For the last year I have been blogging about a large East Coat loan modification firm called American Modification Agency (AKA Amerimod or Your AMA) and its owner, Sal Pane. Just last month, New York Attorney General Andrew Cuomo filed civil charges the Long Island loan modification company.
Cuomo at that time described his investigation into [...]

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Parsa Law Group – Targeted by California Attorney General

by Moe Bedard

The Parsa Law Group received a serious letter from the California State Attorney General in regards to their advertising claims and methods. The California law firm has been aggressively advertising on television and the internet for the last several months. They claim to have helped over 4,000 homeowners save their homes.
In a letter dated August 12, [...]

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Brown Orders Mortgage Foreclosure Consultants to Post $100,000 Bond or Face Prosecution

by Moe Bedard

California Attorney General Press Realease | Los Angeles – Threatening possible criminal and civil prosecution, Attorney General Edmund G. Brown Jr. today ordered 386 mortgage foreclosure consultants to post $100,000 bonds and register with his office.
He also ordered more than two dozen companies to justify suspicious loan modification claims made in “slick advertising,” online and [...]

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Ohio AG lawsuit against Carrington Mortgage Services moves forward

by Moe Bedard

“This lawsuit makes it clear that we have reached zero tolerance for this kind of behavior from loan servicers,” he said.
“We’ve tried to work with them, but now we must take action. I am determined to see that mortgage servicers step up, take responsibility and start making it right with Ohioans. No more excuses.”
Read more [...]

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California AG Brown to join the DRE and Bar on Wednesday

by Moe Bedard

California Attorney General Edmund G. Brown has announced that he is joining forces with the Department of Real Estate and the State Bar in a new round of loan modification busts this Wednesday.
I can see the remaining loan mod brokers and sham law firms running into the darkness as I write this blog post. Unfortunately for 200 plus firms in Southern [...]

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Final Letter to Secretary Geithner and Secretary Donovan

by Moe Bedard

This is an interesting letter from five state Attorney Generals to US Treasury Secretary Geithner and HUD Secretary Donovan. I feel that all the recommendations and criticism in this letter is spot on.
From the Arizona AG 
United States Housing and Urban Development
451 7th Street, S.W.
Washington, D.C. 20410
Dear Secretary Geithner and Secretary Donovan:
We want to thank members [...]

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Carrington Mortgage Services says they treat struggling homeowners just fine

by Moe Bedard

This is Bruce Rose, CEO of Carrington Mortgage Services and listed with NACA as one of their ten most wanted financial predators. Now, Ohio’s top cop wants them to pay for their mortgage disservice!
Our state’s attorney generals and the FTC  have been the only government agencies that are actually doing something effective to help struggling Americans [...]

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Ohio AG & Dept. of Commerce first to sue mortgage servicer

by Moe Bedard

Cordray & Ohio Department of Commerce First in Nation to Sue Mortgage Servicer for Unfair Practices
(COLUMBUS, Ohio) — Ohio Attorney General Richard Cordray today filed a joint lawsuit with the Ohio Department of Commerce against Carrington Mortgage Services, LLC. The lawsuit alleges that Carrington breached its agreement with the state to offer reasonable loan modifications [...]

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PA Attorney General Corbin reaches settlement with Countrywide

by Moe Bedard

HARRISBURG – Attorney General Tom Corbett today announced that more than 1,100 Pennsylvania consumers have been sent notification that they are eligible for mortgage foreclosure relief as part of a settlement with Countrywide Financial Corporation.
Corbett said the Pennsylvania consumers who are being contacted are borrowers whose Countrywide loans resulted in foreclosure. Eligible consumers will receive [...]

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US Foreclosure Relief, HE Servicing – California AG Brown shuts down boiler room!

by Moe Bedard

From the California AG: On July 7, 2009, as part of “Operation Loan Lies,” Brown, the Federal Trade Commission and the State of Missouri sued US Foreclosure Relief Corp., George Escalante, Cesar Lopez and Adrian Pomery who operated a number of fraudulent foreclosure relief companies including H.E. Servicing, Inc. On the same day the suit [...]

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North Carolina AG Roy Cooper lobbies to protect homeowners from foreclosure

by Moe Bedard

Tuesday, North Carolina Attorney General Roy Cooper lobbied the state judiciary committee to consider the Consumer Economic Protection Act for homeowners in trouble.
   
It would allow clerks of court to force lenders to take up to 60 days to work out a payment plan with homeowners before foreclosing.
Read more from WNCT News

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FHA All Day.com / Jason Vitulano s – Florida AG Files Lawsuit

by Moe Bedard

McCollum Files Lawsuit Against 4 South Florida Companies for Foreclosure Rescue Fraud ~ FHA ALL DAY AND JASON VITULANO
Company director allegedly ran boiler-room telemarketing operation using the President’s voice to target victims ~
TALLAHASSEE, FL – Attorney General Bill McCollum today announced that his office has filed a lawsuit against four related South Florida companies that [...]

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Victor Lopez & Associates – Florida AG says they targeted Hispanics

by Moe Bedard

TALLAHASSEE, FL- Attorney General Bill McCollum today announced his office has filed a lawsuit against a Central Florida company that allegedly charges homeowners facing foreclosure up-front fees for loan modification services. According to the lawsuit filed today in Orange County, Victor Lopez & Associates and its owners are in violation of Florida’s Foreclosure Rescue Fraud [...]

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Colorado Attorney General Bans 7 Loan Modification Firms

by Moe Bedard

Attorney General Announces Actions Against Seven Loan-Modification Companies As Part Of Multistate Sweep
7/15/2009
DENVER — Colorado Attorney General John Suthers announced today the state has reached agreements with seven loan-modification firms that either failed to deliver results to Colorado consumers or engaged in deceptive advertising. The agreements will force these firms to either comply with Colorado [...]

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Brown Sues 21 Individuals and 14 Companies Who Ripped Off Homeowners Desperate for Mortgage Relief

by Moe Bedard

Los Angeles – As part of a massive federal-state crackdown on loan modification scams, Attorney General Edmund G. Brown Jr. at a press conference today announced the filing of legal action against 21 individuals and 14 companies who ripped off thousands of homeowners desperately seeking mortgage relief.
Brown is demanding millions in civil penalties, restitution for [...]

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Lucas Law Center – FTC & AG File Lawsuits and Freeze Assets

by Moe Bedard

Lucas Law Center – LUCASLAWCENTER “INCORPORATED,” Future Financial Services, LLC, Paul Jeffrey Lucas, Christopher Francis Betts, and Frank Sullivan.
Lucas Law Center allegedly used an attorney to circumvent state prohibitions against receiving a fee before providing any services; the defendants charged up to $3,995 in advance. In addition to falsely representing that they would obtain mortgage [...]

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Santoya Financial sued by the Arizona Attorney General

by Moe Bedard

A consumer-fraud lawsuit has been filed against the Phoenix-based loan-modification firm Santoya Financial.
The Arizona attorney general filed the suit Monday alleging Santoya is deceiving consumers with its advertising, Web site and news releases.
According to the suit, Santoya claims its loan-modification services are approved by the U.S. Department of Housing and Urban Development, which is not [...]

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