Backpeddling Begins For City Officials Whose Foreclosure Program Referred Strapped Homeowners To Forensic Loan Audit Outfit With History Of Complaints

In Carson, California, The Daily Breeze reports:

• Carson's elected officials are distancing themselves from a city foreclosure program that has steered strapped homeowners to a private firm with a history of complaints. The company, ABS Business Solutions, charges thousands of dollars in up-front fees to perform mortgage "audits." It is illegal to charge up-front fees for foreclosure counseling, and numerous nonprofit groups will do it for free.(1)

• Councilman Elito Santarina, who serves on the city's foreclosure protection subcommittee, said he wanted a full explanation of what went wrong from the program's coordinator, Sai Momoli.(2) "I'm so furious. This is ridiculous," Santarina said. "All I wanted was to do something good for the people. I wish I knew every detail and I wish I knew I had been a part of this. No, I do not know anything about this. I am out of it."

For the story, see Carson officials distancing themselves from foreclosure program.

(1) The Breeze recently reported that the Carson Foreclosure Crisis Response Team was referring Carson residents to ABS, which the Attorney General's Office has targeted for failing to register as a foreclosure consultant. The Breeze also reported that several former ABS customers have posted complaints about the company online, claiming that it had taken fees of more than $3,000 and then had done nothing to prevent their foreclosures. See Carson mortgage program is under fire.

(2) According to an earlier story, the city's Foreclosure Crisis Response Team was launched last October, when local resident Sai Momoli urged the City Council to invest $300,000 in his foreclosure prevention program. Momoli touted his connections to Marie McDonnell, a Massachusetts-based mortgage consultant. See Carson mortgage program is under fire.