Arizona Feds, State Law Enforcement Raid Suspected Loan Modification Racket

In Scottsdale, Arizona, KPHO-TV Channel 5 reports:

• State and federal agents raided the largest loan modification company in Arizona [last week]. Authorities arrived at Discount Mortgage Relief in Scottsdale around eight in the morning. Dozens of employees were told to leave as investigators sifted through documents and files.

• "They're definitely looking for something," said employee Gary Porter. "I have no idea what it is, but it must be something important." CBS 5 News has learned the Discount Mortgage Relief is set up to take calls from across the country from struggling homeowners, looking to modify their mortgage. The company receives about 1,000 calls a day.

• Arizona's Better Business Bureau has received at least 90 complaints about Discount Mortgage Relief since 2008 and has given the company an "F" rating.(1)

Source: FBI Storms Loan Modification Company (Employees Surprised By Sudden Raid).

(1) According to the story, one employee who has been with the company for a week, said that during his training, he got a sense that things were a little shady. "Not one of those people I heard on the phone with customers was honest," he said. "They were promising things they couldn't deliver, like interest rates." However, company spokeswoman Stacey Pearson said, the raid was not necessary, because they are not doing anything wrong, the story states.