David Saks: Loan Mod Companies Taken Down for Illegal Practices

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

Loan Mod Companies Taken Down for Illegal Practices

Loan Mod Companies Taken Down for Illegal Practices

Save My Home USA Co. Inc., Jason and Justin McCallum and Chad Buchanan, were ordered to cease and desist from doing business in Minnesota as residential mortgage originators or residential mortgage servicers. Michigan-based Save My Home USA Co. Inc. and its owners were charged with allegedly defrauding 118 Minnesota homeowners by taking upfront fees for loan modification services never provided to the consumers.

According to the investigation, Save My Home USA contacted the residents and convinced them to pay advance fees for loan modification services. The 118 homeowners allegedly paid a collective $289,020 in fees. Of the 23 homeowners contacted by the department, only one claims to have received loan modification services. Instead, residents lost as much as $1,000 to $4,000 per family, and fell farther behind on mortgage payments.

SafeHouse Professional Mortgage Restructuring (Safehouse), Certified Financial Protection Group (CFPG) & Michael Wayman

In February 2011, SafeHouse Professional Mortgage Restructuring and Certified Financial Protection Group, both of Temecula, Calif., and Michael Wayman, Menifee Calif., were ordered to each pay a $10,000 civil penalty, and barred them from residential mortgage origination or modification activity in Minnesota. They were also ordered to cease and desist from holding themselves out as residential mortgage servicers or originators in Minnesota.

According to the investigation, Wyman, CFPG and Safehouse collected more than $12,000 in fees from Minnesota residents for loan modification services before performing services and without providing any "meaningful assistance."

LMS and Associates

Also in February 2011, Todd Jacobson, and his company LMS and Associates, were ordered to each pay a $100,000 civil penalty for engaging in unlicensed loan modification activity in the state and for engaging in deceptive practices. The investigation revealed that between April 24, 2009 and October 27, 2009, the unlicensed LMS allegedly invoiced 105 files for a total of $250,941 in fees.  The company allegedly told customers it could assist with a number of services, including repayment plans, repayment restructuring, loan modification, refinancing or short sales and that the customer would receive a refund if LMS couldn't complete one or more of those services. 

According to the investgation, LMS allegedly did not perform the services it said it would, yet failed to issue refunds to customers as promised.  In the case of a customer in Paynesville, Minnesota, LMS allegedly forged a customer's signature and used White-Out to alter information on forms.

Mortgage Auditors of America

In October 2010, Mortgage Auditors of America (MAA) entered into a consent order with the Minnesota Department of Commerce, agreeing to pay a $40,000 penalty ($20,000 of which was stayed) for deceptive practices and making false or misleading statements regarding loan modifications. The company was also ordered to refund consumers the money they paid for the services not rendered.

According to the investigation, MAA operated a scheme by which they offered mortgage loan modifications to distressed homeowners who paid a fee ranging from $1,500 to $2,995 for a "forensic audit."  In return, the company allegedly offered to review the homeowner's mortgage closing documents to determine whether the homeowner had been a victim of mortgage fraud.  In addition, MAA allegedly offered homeowners "free" loan modification services through affiliates County Loan Modification or Take the Land on Profit Services.  The company advertised its services on KTTB-FM (B96) and allegedly claimed "There is no risk to call and no charge" if they could not help.

The investigation revealed that MAA and its affiliates allegedly collected more than $27,000 in fees in at least 30 different cases.  There was no evidence, however, that the companies had successfully modified any of the loans.

Neither Mortgage Auditors of America nor its affiliate, Take The Land Nonprofit Housing Corp., are licensed mortgage originators in Minnesota.  The department has issued a cease-and-desist order, demanding that MAA and its affiliates stop representing themselves as residential mortgage originators in Minnesota.

Courtesy Mortgage Fraud Blog




David Saks



Time&Temp Memphis

Legal Disclaimer
Please be advised that:

 The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

By entering this web site, you understand the following:
When you select a link to an outside Web site, you are subject to the privacy, copyright, security, and information quality policies of that Web site. David Saks:
1.DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked Web site;
2.DOES NOT endorse linked Web sites, the views they express, or the products/services they offer unless linked web sites, the views they express, or the products/services they offer endorse or support David Saks in accordance with the standards of the Tennessee Real Estate Commission and the Federal Government's laws regarding commerce and the application, solicitation and transmission of internet-related concerns, commerce or social networking;
3.CANNOT authorize the use of copyrighted materials contained in linked Web sites;
4.IS NOT responsible for transmissions users receive from linked Web sites;
5. That DavidSaks.Com is biographical & real estate related. Some links within will leave this site.
6. http://activerain.com/profile/davidsaks is internet-compliant & abides by the rules & regulations of the Tennessee Real Estate Commission, Eve Maxwell, Executive Director.
7. Unless indicated otherwise, ActiveRain does offer listings, or IDX and is provided for licensed salespersons, brokers, buyers & sellers of real property as a community & professional service.
8. David Saks is a retired / licensed real estate broker in the State of Tennessee, license #290452, and an independent contractor.
9. Information is believed to be accurate, but not guaranteed, at any realty link or document connected to the World Wide Web & viewable by anyone connected to the internet who has a web browser.
10. Brokers, buyers, sellers, agents & anyone should independently verify any information prior to submitting any offer to purchase goods & services from any link.
11. Please Visit The American Real Estate Alliance or Memphis.8k.Com for additional information regarding property issues for real estate professionals and consumers.

 

Photos © & Licensed by Nova Development

All Content Protected © 
Before you even think about
committing a real estate crime
click this red button.
Real Estate Crimes

© All Rights Reserved.

 

 

 

 

"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."

Department of Justice Legal Policies


 

  Real Estate Crimes

 

Click "HERE" For Today's Question

 

 

TheListen Now!

David Saks Show

Saturday Nite

9pm-12am Central

University of Memphis

WUMR

 

Support
America's Hobby

Click Elvis

Mr.Saks' participation in ActiveRain ended April 13, 2015.

His blog archives will remain online.

May God bless you.

Comment balloon 0 commentsDavid Saks • August 17 2011 01:59PM

Comments

This blog does not allow anonymous comments