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Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of Smith Dollar, PC, is licensed to practice law in California and maintains offices in Santa Rosa, California. Email Ms. Dollar
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Suits Filed Against Four Mortgage Rescue Companies
Consumer protection lawsuits were filed against four loan modification or "mortgage rescue" businesses, along with their officers, who are accused of deceiving Pennsylvania consumers seeking help modifying their mortgage loans. The defendants include:
Foreclosure Awareness Inc., Bensalem and Boca Raton, Florida, along with owner Michael Squillace.
Nationwide Foreclosure Prevention Center LLC, Williamstown, New Jersey, and owner Robert P. Valentin.
Best Interest Rate Mortgage Company LLC, Huntingdon Valley, Pennsylvania, and Westmont, New Jersey, as well as company President Michael J. Diplacido.
U.S. Mortgage Mod LLC, Philadelphia, and owner Marc Dambrosio.
The suit claims that in addition to false or misleading claims about the ability to actually modify loans, some of the companies named in these lawsuits also allegedly used deceptive mailings to consumers designed to appear as if the correspondence came from a government agency or government-related program.
Additionally, the companies did not provide consumers with state-required financial disclosure information, failed to inform consumers about their five-day right to cancel and accepted up-front fees without posting the necessary surety bond or trust account. Other companies were not licensed by the Pennsylvania Department of Banking to handle mortgage loans or loan refinancing.
Foreclosure Awareness Inc., operating from both Pennsylvania and Florida, is accused of using deceptive and misleading advertisements and failing to provide the services that were promised. The company allegedly boasted on its website, "we have helped hundreds of homeowners to gain a financial edge on what was once a loan gone bad." The company also claimed they "can assist you with a smooth transition to help save your home," and added in direct-mail advertisements, "We Help over 90% of the homeowners that call."
According to the consumer protection lawsuit, Foreclosure Awareness Inc. failed to deliver the promised services to consumers, resulting in complaints from consumers across the country.
Corbett said the company also allegedly operated as a "credit services organization" without complying with Pennsylvania law, including requirements involving contracts, the mandatory five-day right to cancel and the posting of a surety bond or trust account with the Department of State, and also failed to register as a telemarketer.
Nationwide Foreclosure Prevention Center, using the Internet address "ceasemyforeclosure.com," allegedly promised to "negotiate with your lender to stop your foreclosure and get you the best loan modification possible."
According to the consumer protection lawsuit, the company made numerous misleading advertising claims, including deceptive statements proclaiming, "We are an Attorney Based Company!" In reality, Nationwide Foreclosure Prevention Center had only one employee, owner Robert P. Valentin, who is not an attorney.
Corbett said the company is accused of not providing services that consumers were promised, along with failing to inform consumers of their five-day right to cancel a credit services contract, not posting the required surety bond or trust account with the Department of State, operating a mortgage loan business without the required license from the Department of Banking and conducting telemarketing in Pennsylvania without registering with the Attorney General's Office.
Best Interest Rate Mortgage Company, operating in both Pennsylvania and New Jersey, allegedly used deceptive direct-mail advertisements that were designed to appear as if they were sent by a government agency. The company is also accused of misrepresenting the benefits of its services via their website and conducted telemarketing in Pennsylvania without registering with the Attorney General's Office.
According to the lawsuit, Best Interest Rate Mortgage Company violated the state's Credit Services Act by accepting upfront payments for their services without having a bond or trust account in place with the Department of State. Additionally, the company's business practices allegedly violated the Mortgage Act under which they are licensed by the Department of Banking.
Mortgage Modallegedly used misleading mailers and also made misrepresentations to consumers about its ability to help consumers obtain loan modifications.
Additionally, the lawsuit alleges that U.S. Mortgage Mod improperly accepted loan modification fees upfront, without the required bond or trust account posted with the Department of State, and engaged in telemarketing activity in Pennsylvania without registering with the Attorney General's Office.
Attorney General Tom Corbett said that all of the consumer protection lawsuits seek restitution for all consumers who were victimized, as allowed by law, along with civil penalties, fines and other court-ordered relief.
Consumers are urged to contact the Attorney General's Bureau of Consumer Protection if they believe they have been victimized by these companies, along with other "mortgage rescue" or loan modification businesses. Concerned Pennsylvania residents can call the Attorney General's Consumer Protection Hotline at 1-800-441-2555 or file an online consumer complaint.
All four lawsuits were filed today in Commonwealth Court, in Harrisburg, Pennsylvania, by Senior Deputy Attorney General John M. Abel of the Attorney General's Bureau of Consumer Protection.
Corbett cautioned consumers to be wary of various "red flags" that might alert them to potential loan modification scams, including:
1- "Guaranteed" results. 2- Required payment of large up-front fees. 3- Claims that negative information can be deleted from your credit report. 4- Businesses that rush you through paperwork without giving adequate time for you to study and understand all the documents you are signing. 5- Instructions not to contact your own lender, lawyer or personal financial adviser. 6- Telemarketing sales calls to phone numbers registered on the state or national "Do Not Call" lists.
Corbett reminded consumers that free assistance is available from certified Housing Counseling Agencies by contacting the Pennsylvania Housing Finance Agency at 1-800-822-1174.
Failed Mortgage Firm Trustee Allowed $50,000 in Fees Union Leader
U.S. Bankruptcy Court Judge J. Michael Deasy will approve $50,000 in legal fees for the trustee of failed mortgage brokerage businesses Financial Resources Mortgage Inc. and CL&M Inc.
Bend Oregon Event to Help Homeowners Prevent Foreclosures Oregon.Gov
As part of an ongoing effort to help homeowners avoid foreclosure, state agencies are organizing a foreclosure-prevention event in Bend on Saturday, March 27, 2010.
Shelbyville Man Gets 2-Year Sentence For Loan Fraud Chattanoogan.Com
Prosecutor Gary Humble said the lost was approximately $2.3 million in the mortgage fraud involving hundreds of homes in the Shelbyville area.
Lend America, VP Ashley Banned from FHA Housing Wire
Michael Ashley, the embattled former vice president of Federal Housing Administration (FHA)-backed mortgage originator Lend America, and the company he worked for, were permanently banned from doing business in the industry last week.
Countrywide Tries to Pin Blame on Insurer Court House News
Countrywide Home Loans demands $111 million from Triad Guaranty Insurance, claiming Triad is trying to blame mortgage lenders for the insurer's role in the housing bubble and collapse.
Investors Say They Were Swindled in Property Scheme Fox 13 Now
Utah Division of Consumer Protection is joining forces with a few investors who claim they have been cheated by an agency called "Utah Mini Ranches.
Greenfield Man Accused of Housing Scam The Republic
A former real estate agent conned at least eight people by renting them properties actually owned by a federal agency and then running off with their deposits, prosecutors said.
Appraisal Institute Opposes Obama Administration's Plan for Homeowner 'Short Sales' PR News Wire
Citing concerns about increased mortgage fraud, four organizations representing more than 35,000 real estate appraisers today voiced their opposition to changes to an Obama administration program that will encourage "short sales" of homes.
Ownership Rights to Get Another Look TBO.Com
State lawmakers may beef up protections of property owners' rights by rewriting a law this spring that is at the center of a case of alleged fraud in Pasco County.
Thursday, February 18, 2010 F. Jeffrey Miller Trial Continued Testimony
As reported by Anne Mitchell, who viewed the trial:
Angela Parenza worked for Jeff Miller as the office manager for 7 or 8 years beginning in 1998. Parenza was indicted along with Miller and pled guilty to conspiracy to commit bank fraud and money laundering. Parenza testified that Miller or his contractors allegedly preferred to build all the...
Wednesday, February 10, 2010 F. Jeffrey Miller Trial Coverage Continued - Witness Testimony
Steve Middleton Testimony - Coverage Provided by Anne Mitchell
The Government continued in its cross examination of Steve Middleton. He was shown several HUD-1 statements involving sales of homes located in Overland Park, KS, and Olathe, KS. The HUD statements each allegedly showed line items of payments to (James) Moser & Associates, LLC's...
Monday, February 01, 2010 F. Jeffrey Miller Trial Coverage - Continued Witness Examination
According to Anne Mitchell, who is present in court for the trial:
Next Witness: Kelly Sanford
Kelly Sanford of the Federal Reserve was a short witness for the Government. Sanford manages electronic payments between banks and member financial institutions. He was shown copies of wire transfers and asked whether they coincided with the counts in...
Wednesday, January 27, 2010 F. Jeffrey Miller Trial - Prosecution Witnesses Continued
According to Anne Mitchell, who is viewing the trial:
January 13, 2010
Witness: Rick Hayes
Rick Hayes testified that on the day that he closed on his Miller Enterprise home, he received a phone call from the Kansas Banking Commission informing him that his loan was fraudulent. After the Hayes responded to a classified ad, they met with John...
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The information and notices contained on Mortgage Fraud Blog are intended to summarize recent developments in mortgage fraud cases and mortgage banking matters nationwide. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about mortgage banking, mortgage fraud matters or who believe they require legal counsel should seek the advice of an attorney. The creators, editors and sponsors of Mortgage Fraud Blog do not intend to create a confidential relationship or an attorney-client relationship by communication via or arising from this site.
Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of 
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