N.M.M.S.R. Incorporated, doing business as Making Home Affordable USA, and its owner Jason Keating, Maumee, Ohio, are the subjects of a civil lawsuit charging them with multiple violations of Ohio’s consumer laws.
Making Home Affordable USA offers loan modification and foreclosure assistance services through its National Mortgage Modification Stimulus Home Saver Program. Although the business’ name and website closely resemble that of the federal government’s Making Home Affordable program, Making Home Affordable USA is not associated with the federal government.
According to the investigation, the business instructed consumers to stop making their mortgage payments (even if they were current on their payments) and stated that banks and lenders would not negotiate unless consumers were behind on their payments. Consumers paid 60 to 65 percent of their current mortgage payment to the business after the business assured them that the funds would be held in escrow and submitted to their lenders once a modification was reached. Consumers’ lenders never received any of the funds placed into the accounts.
Approximately 30 consumers have filed complaints with the Ohio Attorney General’s Office, the Better Business Bureau, or the Federal Trade Commission. Their losses total around $75,000. Many additional victims likely have been affected.
The lawsuit charges the business and its owner with violations of Ohio’s Consumer Sales Practices Act and Telephone Solicitation Sales Act. Specific counts include failure to deliver, encouraging consumers to default on their mortgages, and failing to register as a telephone solicitor. The Attorney General seeks consumer restitution, permanent injunctive relief, and civil penalties.
Ohio Attorney General Mike DeWine announced the lawsuit.
“Too many consumers have lost thousands of dollars, or even their homes, because of loan modification services that did nothing to help them,” DeWine said. “We are continuing to target foreclosure relief businesses that mislead consumers, and we will continue to take action when we find them.”
“Don’t trust a business that tells you to stop making your mortgage payment in order to get a modification,” DeWine said. “Not only is it bad advice — in Ohio, it’s also illegal.”
Attorney General DeWine offers consumers the following advice:
• Do not pay up-front fees for help avoiding foreclosure or obtaining mortgage relief. By law, companies are prohibited from charging and accepting fees for mortgage assistance relief services until consumers receive and accept a loan modification offer from their lenders.
• Research a business before providing any money or personal information. Check to see if consumers have filed complaints with the Ohio Attorney General’s Office and check a company’s reputation with the Better Business Bureau. Don’t use a loan modification business that charges upfront fees.
• Contact Save the Dream Ohio if you are having difficulty making your mortgage payments. Call 888-404-4674 or visit www.savethedream.ohio.gov for free foreclosure assistance.
