"There has to be one set of rules for everyone, no matter how rich or powerful, and that is why our office has aggressively cracked down on those who prey upon vulnerable consumers at risk of losing their home," said Attorney General Schneiderman. "I am proud to stand up for middle class New Yorkers against predatory scammers seeking to exploit those still reeling from the housing crisis."
Earlier today the Attorney General's office secured a temporary restraining order barring the companies from collecting illegal advance fees from homeowners before they accept and execute a loan modification agreement and advertising and operating their business without providing the disclosures required by the federal Mortgage Assistance Relief Services (MARS) Rule. The court also placed a freeze on company bank accounts.
Attorney General Schneiderman's lawsuit alleges that the companies engaged in fraudulent and illegal practices in the marketing and operation of their foreclosure rescue and loan modification business involving consumers from
Company salespersons furthered the fraud by falsely representing to homeowners that they could get their mortgage servicing company to reduce the principal balance of their mortgage loan to the value of their home or that they would be able to obtain a specific reduction in their monthly mortgage payment. The companies failed to provide required disclosures that would have alerted consumers to be wary of these misleading claims, particularly the disclosure that the consumer can stop doing business with the companies at any time and that they do not have to pay anything to the company if they reject the offer of mortgage assistance obtained from the consumer's lender or servicer. The companies collected hefty upfront fees from homeowners, ranging from
If you were a victim of Home Affordable Direct or any of its affiliated companies or if you believe you were a victim of another mortgage fraud, please file a complaint with the
Free help to homeowners is available through the Home Owner Protection Program ("HOPP"), which uses funds from the National Mortgage Settlement to fund legal services and housing counseling across
This case is being handled by Assistant Attorney General
This case is part of a joint federal-state sweep by the
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