FTC Leads ‘Operation Loan Lies’

Posted by Orb Staff on July 16, 2009 No Comments
Categories : Mortgage Servicing

l and state agencies are joining together for Operation Loan Lies, a coordinated national law enforcement effort to crack down on mortgage modification scams. The operation, announced by Federal Trade Commission (FTC) Chair Jon Leibowitz, involves 189 actions by 25 federal and state agencies against defendants who deceptively marketed foreclosure rescue and mortgage modification services. The FTC additionally announced lawsuits against four companies – US Foreclosure Relief, Lucas Law Center, Loss Mitigation Services and Apply2Save – for falsely claiming to borrowers that they would help stop foreclosure proceedings and/or modify borrowers' mortgages. The new lawsuits bring to 14 the number of mortgage foreclosure rescue and loan modification scam cases the commission has brought since April. In each case, the FTC is asking the court for consumer redress and a permanent bar on the deceptive practices. The complaints against US Foreclosure Relief, Lucas Law Center and Loss Mitigation Services were filed in the U.S. District Court for the Central District of California, and Apply2Save's case was filed in the U.S. District Court for the District of Idaho. SOUR

Register here to receive our Latest Headlines email newsletter




Leave a Comment