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California Attorneys Disbarred For Loan Modification Activities and Rolls Out Tough New Regulations Regarding Mortgage Foreclosure Consultants

Threatening possible criminal and civil prosecution, California 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 through the mail.

The companies that were specifically targeted for potential misleading advertising claims are 21st Century Real Estate Investment Corporation, Alliance Law Center, Alta California Alliance, American Home Agency, American National Loan Audit, Apex Financial, Avoiding Mortgage Foreclosure, Bills Made Simple, Consumer Debt Foundation, emodifymyloan.com, Fair Lending Audits, Fidelity law Group, Foreclosure Protection Bureau, Home Rescue Alliance, Home Retention Programs, Jim Chang, Mortgage Modification Solutions, National Bay, Nationwide Modification Center, Nextwave Financial, Parsa Law Group, Patriot Mortgage Company, PRG Systems, ReviseMyLoan.com, Stop Home Foreclosure Help, Thomas Dvorak, TVC Financial. You can see the underlying advertising messages that lead to these claims by looking at this material.

“Hoping to lower their mortgage payments, thousands of homeowners were instead duped by slick advertising and money-back guarantees,” Brown said. “The time for accountability is at hand, and this rogue industry must clean itself up or face legal action,” Brown added.

Brown also unveiled a new website ( http://ag.ca.gov/loanmod) that provides homeowners tips to avoid loan modification fraud, allows them to determine if a company is registered with his office and makes it easier to file complaints.

Brown today joined with the California Department of Real Estate and the State Bar of California in a new partnership to combat loan modification and foreclosure fraud.

Brown has sent letters directing 386 mortgage foreclosure consultants to register with his office within 10 days and post $100,000 bond, or demonstrate why they are not required to. If the consultants are required to register and have failed to do so, they are subject to criminal penalties of up to a year in jail and fines ranging from $1,000 to $25,000 per violation. Eighty-five of these consultants are based in Los Angeles County, 133 in Orange County, 47 in the Inland Empire, 68 in San Diego County and seven in the Bay Area.

Additionally, Brown sent letters today demanding that 27 loan consultants substantiate suspect claims made on the internet and in direct mail advertising. For instance:

  • Brown directed Irsfeld, Irsfeld & Younger, LLP of Glendale, Calif. to substantiate its claims including: “Our team has 10 years of success in negotiating 90% of all mortgage loan modification requests to a successful outcome….For the modification requests we accept, our modification failure rate is less than 1%.”
  • Brown directed 21st Century Real Estate Investment Corporation of Rancho Cucamonga to substantiate its written solicitations including: “[y]our proposed loan modification is a 30 year fixed/3.5% interest rate with a monthly payment of $495. Your monthly savings is $705. Total savings over a 30-year period is $253,800. . . . Your first payment will be negotiated to begin March 2009 – payable to your current lender for $495.”
  • Brown directed Mortgage Modification Solutions of Irvine to substantiate its claims including: “Our services are due to the FEDERAL MANDATE which makes it mandatory for mortgagees, upon the default of a single family mortgage, to engage in loss mitigation actions” and “Why $3995.00 is nothing compared to what you can accomplish in return? #1- It’s 10 times more expensive to hire a CPA or a Financial Advisor to exclusively analyze & Research your financial affairs to create a plan acceptable to the Banking standards.”
  • Brown directed Alliance Law Center of San Diego to substantiate its letters to consumers stating: “Final Notice: 3/11/09, our review of certain information indicates you may be a victim of federal disclosure violations and/or predatory lending violations, therefore your loan may be invalid, and you may qualify for a loan modification saving you thousands of dollars.”

The State Bar of California today announced that it has obtained resignations from two lawyers and filed charges against a third for their loan modification activities. The State Bar’s special team on loan modification complaints continues to investigate more than four hundred active complaints from consumers about lawyers’ roles in loan modification scams.

Brown has made it a top priority to combat loan modification fraud. As part of a nationwide sweep last month, Brown filed suits against 21 individuals and 14 companies who ripped off thousands of homeowners seeking mortgage relief. In total, Brown has sought court orders to shut down 32 companies and has brought criminal charges and obtained lengthy prison sentences for deceptive loan modification consultants.

Copies of the letters and a list of consultants who have not registered are linked.

Source

California Attorneys Disbarred For Loan Modification Activities and Rolls Out Tough New Regulations Regarding Mortgage Foreclosure Consultants
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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Sondra Creed

    This is a followup to my original post on Reyes Law Group. I have an actual judgement agains this attorney who took my money. He continues to dance in the court room supplying documents of why he has not paid the courts and myself on the judgement he owes. he requested a sealed hearing of why he should not be disgorged. He owed the money Dec.6th and still has not paid. he has agreed incourt he owes the money but is still able to keep the judge at bay. I feel this falls under grand theft or fraud at this point. He has kept my money for three years now without a single document being filed. A thief is a theif all theives need to go to jail for their actions whether its under the disguise of a business card or letter head and a pricey office in the Wilshire District of Los Angeles. Hi last comment to the judge was I have a plan for this after he told the judge he had a very embarrassing reason why he could not appear to be disgorged for the second time! I pray she lets the gavel drop appropriately.

  • Screed2ski

    Reyes Law Group took $6,000 from me for a loss mitigation case to defend my home they then took an additional $3,000 for an audit. I was then pushed to bankrupsy 7 and they ahve failed to complete removing the judgement off my home so I can short sale it now. They may actually cause my short sale to fail by not following through with the paperwork neccessary to complete what I paid for. $12,000 plus dollars later the bk judge is reviewing this and will rule on it soon. He marketed to me he had been on NBC and was an expert at loss mitigation, the when nothing had been filed he told me to go and sell everything and do a bk 11 and I had to bring him $15,000 or he wouldn’t do it. I was left feeling swindled and neglected through this entire process. He abandoned me at the time of release of my bankrupsy and left me to defend myself when my home could have been negotiated for a loan modifcation. This man needs to be taken to task as he took alot of hard earned money from me and I am still losing my home after all this and not a single doc was filed on it.

  • Franklin Huddy

    I was scammed out of $3,000.00 By Attorneys 4 Justice, Operated by Debra R. Torres-Reyes. They took all my Contract’s and paperwork to do a Forensic audit,and now wont answer any calls or return messages. Anyone that knows what I can do to get my contracts, and $3,000.00 worth of Justice Please Help!!!!

  • http://[email protected] Roberto

    I was scammed by Dyer Beech one year ago. They told me I’d be in great hands with all their affiliates….BMS Debt Management and TVC Financial. I had to hire an attorney to take over my loan modification. They took my money and failed to deliver any of their services. I wrote letters to them and just get the envelopes returned. That was $3500 lost and no one to hold accountable for it. If anyone knows how I can get a hold of any of these companies please do so.

  • neil r martinez

    I would like to make you aware of Nationwide Modification Center not complying with your laws and Colorado Forecloures Protection Act. I filed a complaint with California BBB on Nationwide, and Nationwide never responsed to the complaint. They will not return calls and will n ot refund my $3000.00. If you are interested in my complaint, please contact me anytime.

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