FMA Servicing, Inc., Orlando, Florida, a loan modification company, has been temporarily enjoined by the Orange County Circuit Court from charging up-front fees to homeowners for loan modification services. According to the order, FMA Servicing must comply with written notice requirements contained in the Foreclosure Rescue Fraud Prevention Act.
As previously reported by Mortgage Fraud Blog, the Florida Attorney General’s Economic Crimes Division opened its investigation into FMA Servicing in December 2009 and filed a lawsuit against the company earlier this month. The investigation revealed FMA Servicing, which does business under the name Financial Management Advisors, charges an up-front fee as high as $2,500 to homeowners seeking loan modification services. The company subsequently refused to change its business practices even after receiving notification of the Foreclosure Fraud Rescue Prevention Act which took effect on October 1, 2008.