Washington State Regulator Tags 40 Outfits In Enforcement Actions Against Alleged Unlicensed Loan Mod Rackets, Attorneys

From the Washington State Department of Financial Institutions:

• The Consumer Services Division of the Washington State Department of Financial Institutions (DFI) announced today they have filed 40 Statements of Charges against businesses preying on Washington homeowners facing foreclosure.
  
  None of the companies or individuals charged with offering these so-called mortgage rescue services are licensed with DFI, a requirement that provides essential consumer protections. In addition, none of the attorneys charged are licensed with the Washington State Bar Association (WSBA) to practice law in the state.
  
  With this multi-company sweep, DFI intends to send a clear message to unlicensed individuals and companies taking advantage of Washington consumers — “You are not welcome in this state.”

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• “DFI has received literally hundreds of complaints from Washington homeowners taken advantage of by these ‘rescue’ businesses,” DFI Director Scott Jarvis said. “Financially distressed homeowners paid advance fees of up to $5,000 and received nothing in return. Homes that could have been kept out of foreclosure by legitimate licensed or non-profit businesses were instead foreclosed upon, leaving families homeless and their homes empty, contributing to the depressed housing values and slowing the recovery here in Washington.”
  
  In many cases, the companies failed to perform or presented loan modification offers to lenders that did not significantly improve the homeowners’ mortgage. Because many of the companies charged refused to comply with DFI subpoenas to provide records of Washington transactions, the charges provide notice of DFI’s intent to order the companies to provide a list of all Washington transactions.
  
  DFI has obtained legal service on 21 of the 40 companies charged, including seven law firms and 14 other businesses.

For the entire DFI press release, see DFI Charges 40 Companies In Continuing Efforts To Combat Mortgage Foreclosure Rescue Scams (DFI seeks full restitution, prohibition from operating in Washington, $873,000 in fines).