Industry NewsMortgage

FTC targets mortgage rescue scams

State AGs join crackdown on 178 companies

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The Federal Trade Commission today announced a coordinated national effort to crack down on mortgage rescue scams, with federal regulators and 23 state attorneys general taking action against 178 companies accused of deceptively marketing foreclosure rescue and loan modification services.At a press conference in Los Angeles with California Attorney General Jerry Brown, the FTC announced four new lawsuits, bringing the total number of mortgage foreclosure rescue and loan modification scam cases the commission has brought since April to 14.The FTC alleged that US Foreclosure Relief, Lucas Law Center, Loss Mitigation Services and Apply2Save claimed they would either obtain a mortgage loan modification or stop foreclosure, charging consumers the equivalent of one month's mortgage payment or more in advance. The companies then did little or nothing to help homeowners renegotiate their mortgages or stop foreclosure, the lawsuits allege."These con artists see the high foreclosure rates a...