Calif. AG Goes After FC Consultants

Posted by Orb Staff on August 13, 2009 No Comments
Categories : Mortgage Servicing

rnia Attorney General Edmund G. Brown Jr. has [link=http://ag.ca.gov/newsalerts/release.php?id=1780&][u]ordered[/u][/link] 386 mortgage foreclosure consultants to post $100,000 bonds and register with his office. He has also ordered more than two dozen companies to justify loan modification claims made in online and mailed advertisements. ‘The time for accountability is at hand, and this rogue industry must clean itself up or face legal action,’ Brown says. Brown also unveiled a new consumer-facing [link=http://ag.ca.gov/loanmod][u]Web site[/u][/link] that provides tips on how to avoid loan modification fraud. Borrowers can use the site to file complaints and determine if a company is registered with Brown's office. Brown has sent letters directing 386 mortgage foreclosure consultants to register with his office within 10 days and post $100,000 bond, or demonstrate why they are not required to. If the consultants are required to register and have failed to do so, they are subject to criminal penalties of up to one year in jail and fines ranging from $1,000 to $25,000 per violation. Eighty-five of these consultants are based in Los Angeles County, 133 in Orange County, 47 in the Inland Empire, 68 in San Diego County and seven in the Bay Area. SOURCE: [link=http://ag.ca.gov/]Office of California Attorney General Edmund Brown

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