Thursday, August 18, 2011

NJ AG Seeks Cash, Issues C&D Order Against Seven Loan Modification Outfits Over Unlicensed Activity

From the Office of the New Jersey Attorney General:

  • Continuing the State’s on-going efforts to thwart fraudulent “mortgage loan modification” enterprises, Attorney General Paula T. Dow and the State Division of Consumer Affairs filed administrative actions against seven businesses(1) for illegally offering mortgage modification services to homeowners in dire financial straits. State law requires that anyone providing these services in New Jersey be licensed as a Debt Adjuster by the Department of Banking and Insurance, or be otherwise authorized.

  • The Division of Consumer Affairs filed Notices of Violation against the illegitimate businesses, which offered mortgage loan modification services even though they were not licensed to do so in New Jersey. The State is seeking $35,000 in civil penalties and $49,434 in consumer restitution from the companies. The amounts sought in consumer restitution represent the fees paid by approximately 10 consumers for mortgage loan modification services.

  • The Notices of Violation also provide that the companies, cited for violating the state’s Consumer Fraud Act and Debt Adjustment and Credit Counseling Act, must cease and desist from offering debt adjustment services. The companies have the option of contesting the Notice of Violation and requesting a hearing.

For the NJ AG press release, see New Jersey Division of Consumer Affairs Takes Action Against Seven Illegal “Mortgage Loan Modification” Providers and Seek Restitution for Consumers.

(1) The seven companies served with a Notice of Violation are:

  • Dunwell Financial Services, LLC - Jersey City,
  • Home Mitigation Group - Matawan,
  • Loss Mitigation Consultant Services - Paulsboro,
  • Rose MM, LLC - Newark,
  • Save Americas Mortgages Corp. - Fort Lee,
  • TWI Corp. - Winter Garden, Fla.
  • Continental Associates, Ltd. - Commack, N.Y.

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