Industry NewsMortgage

‘Phony lawsuits’ didn’t help homeowners

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A foreclosure consultant and attorney are accused of filing lawsuits to forestall foreclosure proceedings on behalf of more than 2,000 homeowners in California, then abandoning or failing to prosecute hundreds of the cases.Consultant Paul Noe Jr. and attorney Mitchell W. Roth "ripped off homeowners desperate for help by charging unconscionable fees for phony lawsuits," California Attorney General Jerry Brown said in announcing a complaint against the two. "Instead of aggressively pursuing the lawsuits, Noe and Roth strung them along so they could continue to rake in fees."The pair abandoned or failed to prosecute hundreds of cases, neglecting to respond to motions to dismiss and other pleadings, prompting the California State Bar to shut down Roth's law firm, MW Roth PLC, in February, the complaint alleged. Roth resigned from the bar in May.Noe's company, United First Inc., typically charged $1,850 in upfront fees and a monthly fee of at least $1,250 a month, the co...