Infobytes, June 24, 2011

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Topics in this issue:

Federal Issues; State Issues; Courts; Firm News; Miscellany; Mortgages; Litigation; E-Financial Services; Privacy/Data Security; and, Criminal Enforcement Action.

Excerpt from "Federal Issues"

Federal Issues

Mortgage Loan Modification Business Must Pay Nearly $19 Million to Settle FTC Charges. On June 21, the Federal Trade Commission (FTC) issued a press release announcing that it had entered into a settlement agreement with First Universal Lending, a mortgage loan modification business, and its owners. In its complaint, the FTC alleged that the defendants deceived distressed homeowners by falsely claiming that the defendants would negotiate with lenders to modify the homeowners’ mortgages. The FTC alleged that the defendants collected large up-front fees from homeowners, encouraged them to stop paying their mortgages, and then did little else to assist them. The suit was brought as part of Project Stolen Hope, a federal-state crackdown on foreclosure rescue and loan modification scams. The settlement agreement imposes a judgment of more than $18.8 million on the defendants (First Universal Lending and its owners) and orders them to cease engaging in the mortgage loan modification business....

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Published In: Antitrust & Trade Regulation Updates, Civil Rights Updates, Finance & Banking Updates, Privacy Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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