Non-Profit Attorney Group Tags Network Of Suspected Loan Modification Rackets In Civil Suits Saying Homeowners Were Illegally Clipped For Upfont Fees & Failed To Get Positive Results

The Lawyers' Committee for Civil Rights Under Law recently announced:

• The Lawyers' Committee for Civil Rights Under Law (Lawyers' Committee) has filed a lawsuit in Riverside County, California against a network of for-profit loan modification companies on behalf of 16 homeowners from California and five other states.
  
  The suit alleges that defendants defrauded vulnerable homeowners out of tens of thousands of dollars by falsely promising to obtain—for substantial upfront and monthly membership fees—much-needed mortgage modifications on the homeowners’ behalf, but consistently failing to deliver results. Plaintiffs also sought and obtained a temporary restraining order against the defendants enjoining their illegal operations. Attorneys in the San Diego office of Latham & Watkins LLP are providing pro bono counsel on the case.
  
  In exchange for sizable advance fees of up to $3,700 collected in violation of California law and also, in addition, monthly membership fees required from a number of homeowners, defendants promised to work directly with plaintiffs’ lenders to renegotiate their home loans and to secure lower monthly payments and interest rates, and, in some instances, avoid impending foreclosure.

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• The complaint alleges that the loan modification scam in this case is operated by multiple corporate and individual defendants, managed by principals Michael Wayman and Don Brokaw. The corporate defendants named are Certified Financial Protection Group, LLC, Financial Hope for America, Inc., Safehouse 911, LLC, d/b/a Safehouse Professional Mortgage Restructuring 911, and U.S. Financial Advantage, all of which are California companies.

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• Cox v. Certified Financial Protection Group is the Lawyers’ Committee’s ninth loan modification scam lawsuit and second in California. As part of the Lawyers’ Committee’s work with the Loan Modification Scam Prevention Network (LMSPN), this litigation effort has sought to put an end to the fraudulent and deceptive behavior of so-called loan modification “specialists” in California, Florida, Georgia and New York.
  
  LMSPN is a broad coalition that also includes representatives from key governmental agencies, such as the Federal Trade Commission, the U.S. Department of Housing and Urban Development (HUD), the U.S. Department of Justice, the U.S. Department of the Treasury, the Federal Bureau of Investigation, and the offices of numerous state Attorneys General.

For the press release, see Lawyers’ Committee Files Lawsuit and Obtains Temporary Restraining Order Against Loan Scam Operation Targeting Homeowners Nationwide.

For the lawsuit, see Cox, et al. v. Certified Financial Protection Group, et al., (No. RIC-1214494) (filed in California Superior Court in Riverside County).

Go here for the Temporary Restraining Order.