Industry NewsMortgage

FTC shuts down mortgage ‘rescue’ firms

California companies targeted Spanish speakers

The managers of two California-based companies are accused of collecting at least $3.3 million from Spanish-speaking homeowners without following through on promises to help them negotiate loan modifications with lenders to avoid foreclosure. The Federal Trade Commission claims Jose Mario Esquer and Valentin Benitez managed two Downey, Calif.-based foreclosure rescue operations -- Dinamica Financiera LLC and Soluciones Dinamicas Inc. -- that violated the FTC Act by falsely claiming they would obtain mortgage loan modifications or stop foreclosure in all or virtually all cases. The FTC said it had obtained a temporary restraining order shutting the businesses down and freezing their assets, and will now seek redress for consumers. In its complaint, the FTC alleged the companies have made false or misleading claims in advertisements on Spanish-language radio and magazines since at least January 2006. Although the companies promised or implied that they could obtain mortgage ...

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