CFPB Enforcement Lawsuit Targets Los Angeles Law Firm

Posted by Orb Staff on August 01, 2012 No Comments
Categories : Mortgage Servicing

12102_cfpb CFPB Enforcement Lawsuit Targets Los Angeles Law Firm The Consumer Financial Protection Bureau (CFPB) has filed its first mortgage-related civil enforcement lawsuit, charging a Los Angeles law firm with running an illegal mortgage relief operation.

According to a Bloomberg News report, the Gordon Law Firm is accused of falsely promising loan modification assistance in exchange for advance fees that ranged from $2,500 to $4,000.

‘Rather than helping homeowners modify their mortgage loans or avoid foreclosure, the defendants duped distressed homeowners into paying thousands of dollars based on false promises and misrepresentations,’ Kent Markus, the bureau's enforcement director, said in the filing.

The lawsuit was filed on July 18 and unsealed on July 23. The Gordon Law Firm is currently under a temporary receivership after U.S. District Judge Ronald Lew granted the CFPB's request to freeze the defendants' assets.

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