State Regulator Orders Two Suspected Loan Modification Outfits To Cease & Desist As Sheriff's Deputies Execute Search Warrants On Companies' Records

In Northern Florida, The Florida Times Union reports:

• The Florida Office of Financial Regulation ["OFR"] and Clay County Sheriff's Office [] ordered two Clay County mortgage loan modification companies to cease business and served search warrants on their records, the two agencies announced.

• The two companies closed were Global Equity Solutions, [...] in Middleburg, and Hope Financial Services, [...] in Orange Park. The OFR served immediate cease and desist orders barring the companies from doing business as the sheriff's office executed the search warrants. Names were not released because charges are pending further investigation, the agencies said.

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• OFR investigators found the two companies marketed their services throughout the country via websites, mass mailings and a telephone call center. The companies have about 250 open contracts, where they received between about $1,200 and $1,800 up front first. Those who perform loan modifications in Florida without an active license are subject to being slapped with felony charges punishable by up to five years in prison and a fine as much as $5,000 per offense, [OFR communications director Flora] Beal said.

For the story, see State regulators shut down loan modification companies in Clay County.