South Dakota Agrees to Settlement with Countrywide Financial

PIERRE, S.D.- Attorney General Larry Long announced that South Dakota has entered into a settlement with Countrywide Financial Corporation, and several of its affiliated entities, over the marketing of subprime and other high-risk mortgage products in South Dakota. As part of the agreement, Countrywide will make $161,805 available to eligible South Dakota borrowers. 93 South Dakota consumers qualify for the foreclosure relief program and an underdetermined number of borrowers will qualify... [Read More]

California Foreclosure Moratorium Has Wide Loopholes

Gov. Arnold Schwarzenegger signed into law a 90-day moratorium on California home foreclosures on Friday, but consumer advocates argue wide loopholes will prevent the legislation from significantly slowing repossessions.

The bill, introduced by Sen. Ellen Corbett, D-San Leandro, as a trailer to the California budget package, covers owner-occupied homes where the first loan was recorded between Jan. 1, 2003 and Jan. 1, 2008.

"Many people in our communities are facing the terrible spe... [Read More]

Michigan Group Speaks Out Against Predatory Lenders

Detroit -- A coalition of community leaders gathered this morning to take a stand against predatory lenders and to increase the amount of bankers in Detroit neighborhoods.

The Detroit Alliance for Fair Banking announced the Bank of Detroit initiative, a partnership that seeks to educate city residents about lenders who prey on city residents who do not have accounts.

"Our citizens are not going to be prey, vulnerable to the concoctions of those who simply want to use them as predato... [Read More]

New York AG Files Intent to Sue Amerimod Loan Modification Company

NEW YORK, NY (June 9, 2009) - Attorney General Andrew M. Cuomo today announced his office is taking legal action against a leading New York foreclosure rescue company for charging illegal up-front fees and engaging in consumer fraud. The company targets homeowners facing foreclosure by claiming that it can save their homes, but often fails to provide the services promised. The Attorney General’s Office served a notice of intent to sue on American Modification Agency, Inc. (“Amerimod”) and its... [Read More]

Mass. AG Reaches $10 Million Settlement With Fremont

BOSTON – Today, Attorney General Martha Coakley’s Office entered into a settlement with Fremont Investment & Loan and its parent Fremont General Corporation ("Fremont") to resolve the Commonwealth's lawsuit against the California-based lender. Fremont has agreed to pay the Commonwealth $10 million in consumer relief, civil penalties and costs. Fremont has also agreed not to foreclose upon unfair loans without certain protections for borrowers or originate unfair loans in the... [Read More]

N.Y. City Attorney Arrested for Mortgage Fraud, Forgery

An attorney with the New York City Law Department who had a gambling problem was arrested Tuesday for mortgage fraud that involved inventing a lawsuit and forging the signature of a bankruptcy judge, has been placed on administrative leave.

Hugh Zuber, 38, of Monsey, N.Y., allegedly used the Corporation Counsel's office for a meeting with one of his victims in one of two schemes to defraud property sellers in the Bronx and Spring Valley of hundreds of thousands of dollars. He was charged wit... [Read More]

Oregon Couple Win Credit Risk Ruling Against Chase

PORTLAND, Ore. (AP) — In a legal victory for consumers, a federal appeals court has ruled that Chase Bank must clearly disclose that it can raise the annual percentage rates for cardholders based on credit risk.

The 9th U.S. Circuit Court of Appeals ruled in favor of an Oregon couple who claimed that Chase violated the Truth in Lending Act, reversing a lower court ruling that had dismissed their complaint.

Cheryl and Walter Barrer filed a class-action lawsuit against the bank after it near... [Read More]

California AG Seeks to Deter Foreclosure Scams

Oakland -- Continuing his fight against scam artists who "prey on" vulnerable Californians, Attorney General Edmund G. Brown Jr. today issued a directive forcing foreclosure consultants to register with his office and post a $100,000 bond by July 1, 2009.

Those who fail to do so will be in violation of state law, subject to criminal penalties of up to a year in jail and fines ranging from $1,000 to $25,000 per violation.

"California is awash with con artists who prey on vu... [Read More]

New York Mortgage Fraud Ring Busted by FBI

The feds busted up a $10 million mortgage scam that had left city and Long Island homeowners facing eviction.

The scheme, run out of Bridgewater Funding in Islip, L.I., targeted dozens of residential properties in the $200,000 to $500,000 range, Manhattan prosecutors said yesterday. The office manager, three loan officers and a loan processor coordinated a scheme that targeted distressed homeowners willing to sell as a way to "save" their homes and also focused on properties they be... [Read More]

Colorado Arrests Made in Mortgage Fraud Case

Investigators say a mortgage broker forged documents and doctored numbers to get people into homes and loans they couldn't afford, leading to a string of foreclosures.

Zach Magalei will appear in Jefferson County Court next week. He surrendered to police last week after they obtained arrest warrants for felony theft and forgery. Magalei, and his brother Shane, ran Superior Lending and Mavy Incorporated in Wheat Ridge.

Last July, Wheat Ridge police officers served search warrants on the Ma... [Read More]

Texas AG Cracks Down on Multiple Loss Mitigation Firms

HOUSTON – A Harris County district judge froze several Houston firms’ assets after Texas Attorney General Greg Abbott charged the companies with running foreclosure “rescue” scams.

According to the state’s enforcement action, the defendants fraudulently charged their customers for worthless “rescue,” debt counseling and credit repair services. District Judge Patricia J. Kerrigan also granted the Attorney General’s request for a temporary restraining order.

The state’s enforcement action na... [Read More]

Indiana AG Settles Suit With Countrywide

INDIANAPOLIS – Indiana Attorney General Greg Zoeller today announced the state has reached a settlement with Countrywide Home Loans that focuses on the prevention of future foreclosures. The settlement will return $2.8 million in payments to Hoosiers who had Countrywide-serviced loans and have been foreclosed. In addition to these payments, Zoeller is dedicating $50,000 to the Indiana Foreclosure Prevention Network (IFPN) to support its efforts of foreclosure prevention and mortgage... [Read More]

Arizona Homeowner Facing Foreclosure Due to Scam

PHOENIX - Not one but two Valley families fell for the same promise, come up with some cash and we'll save your home from foreclosure.

Weeks and then months went by and the families still found themselves facing foreclosure. Their mortgages were not modified.

That’s when law enforcement got involved and so did 3 On Your Side.

Maria lives at a house in Phoenix with her children and grandchildren. She didn't want to be identified because she's ashamed. She told us that she's nervous a... [Read More]

Massachusetts AG Reached a $60 Million Settlement With Goldman Sachs

BOSTON – Today, Attorney General Martha Coakley’s Office announced that it has reached a settlement agreement with Goldman Sachs & Company (Goldman), stemming from the office’s investigation of subprime lending and securitization markets. The Attorney General’s Office has been investigating the role of investment banks in the origination and securitization of subprime loans in Massachusetts, leading to today’s settlement. To resolve any potential claims stemming from the Attorney General’s... [Read More]

Arizona Beware of Frivolous Lawsuits by Second Mortgage Lenders

Arizona homeowners who have lost their home to foreclosure should contact an Arizona real estate attorney immediately if any creditor attempts to collect on a debt secured by the foreclosed property. Lenders may attempt to collect on these debts when they have no legal right to do so. Because all situations are different, all casualties of foreclosure should obtain an analysis of their potential liabilities as soon as possible.

In a foreclosure proceeding, the first mortgage is given prefere... [Read More]

South Carolina Puts Foreclosures on Hold

South Carolina's highest court has temporarily stopped about 1,000 pending foreclosure sales so people have more time for a federal program to help them refinance mortgages.

The state Supreme Court on Tuesday issued a restraining order preventing South Carolina judges from finalizing foreclosure sales on properties guaranteed by Fannie Mae or Freddie Mac.

The two government-controlled companies own or guarantee almost 31 million mortgages, more than half of all U.S. home loans. In March, t... [Read More]

California Complaints Soar Over Loan Modification Firms

Complaints about loan modification companies that charge hefty fees but provide little or no service are soaring statewide as distressed homeowners struggle to avoid foreclosure.

While many firms are reputable, the state Department of Real Estate is shifting resources to keep up with a mounting caseload of consumers who say they've been taken advantage of. There were very few complaints against loan modification firms last fall, but since then the number has climbed to about 500, said depart... [Read More]

Nevada AG Warns of Foreclosure Rescue Scams

Carson City, NV: Attorney General Catherine Cortez Masto warns as the mortgage crisis continues to unfold, record-breaking home foreclosures will be experienced and many homeowners will be forced to make tough choices.
Nevada is number one in the nation for foreclosures, with one filing for every 70 households. Foreclosure scams are a statewide problem. Many people who never thought they would be faced with losing their homes now find themselves without resources to maintain their mortgages and... [Read More]

Missouri AG Declares Zero Tolerance on Mortgage Scams

Kansas City, Mo. -- Attorney General Chris Koster today announced his "zero tolerance" campaign against mortgage scams in Missouri, pledging he will "aggressively investigate any suspicion of mortgage deception and use all means in the legal system to prosecute and shut them down or end their deceptive practices." As part of the "Zero Tolerance" campaign, the Attorney General today filed lawsuits against two businesses that sent misleading direct-mail... [Read More]

Florida AG Launches Website to Help Avoid Mortgage Fraud Scams

TALLAHASSEE, FL – Attorney General Bill McCollum today unveiled a new website designed to help homeowners avoid mortgage fraud-related scams. The website, at http://myfloridalegal.com/mortgagefraud, provides consumers with easy access to current investigations, complaint forms, and tips to identify and avoid foreclosure rescue fraud. Foreclosure rescue fraud, or fraud involving loan modifications related to foreclosures, is the complaint topic most commonly reported to the Attorney General’s... [Read More]

Massachusetts AG Martha Coakley Cautions Homeowners to Beware of Scams

BOSTON- Today, Attorney General Martha Coakley’s Office cautioned homeowners that her office has seen an increase in reports of scams targeting homeowners attempting to save their homes from foreclosure. While some of these solicitations are from Massachusetts persons or entities, others originate in other states but seek to prey upon Massachusetts homeowners.

These scams take many forms; in one iteration, an individual will persuade a distressed homeowner to transfer the property title to... [Read More]

New Jersey to Receive $ 3.67 Million in Countrywide Settlement

New Jersey will get $3.67 million from Countrywide Financial Corp. as part of a settlement after the mortgage company was accused of taking advantage of borrowers, Gov. Jon Corzine announced today.

Half of the money will be used to fund state foreclosure prevention programs, and the other half will go to people who lost their homes after making six or fewer mortgage payments, Corzine said.

The state estimated the money would help 8,200 people.

Countrywide, which is now owned by Bank of... [Read More]

Florida AG Creates Mortgage Fraud Task Force

Last week, when Florida’s attorney general was filing suit against Miami-based Lincoln Lending, charging the company with mortgage fraud, little did his office know that another state agency was already on the case.

In fact, on the same day the lawsuit was filed, the Florida Office of Financial Regulation had investigators on the ground at Lincoln Lending. The legal action impeded the work that his office was doing, said Terry Straub, director of finance for the Office of Financial Regulation... [Read More]

New York Mortgage Fraud Case Poses Federal Quandary

The F.B.I.’s most recent Financial Crimes Report estimates that mortgage fraud costs Americans $4 billion to $6 billion annually. The same report identifies New York State as a “Top 10 hot spot” for fraud, and notes that federal law enforcement is overburdened.

In 2005, Waver Brickhouse a gray-haired, soft-spoken 69 year old resident of N.Y., fell behind on her mortgage payments and turned to a so-called rescue firm, which, court papers allege, tricked her into signing away the deed to her B... [Read More]

California Foreclosures on Agenda for Obama

President Barack Obama on Thursday announced that California will receive $145 million to help communities hard-hit by the foreclosure crisis.

The president, speaking to about 1,000 people at a town hall-style event in downtown, said the Department of Housing and Urban Development funds will be used to purchase and rehabilitate vacant, foreclosed homes and resell them with affordable mortgages. The funds, which will target those communities hardest hit by the home foreclosure crisis, "wi... [Read More]