Understanding Today’s Connected Borrower

Sign up for this webinar to learn how to transform the borrower journey from transaction to relationship and gain a significant lift in production in today’s digital lending environment.

RealTrending: eXp’s Glenn Sanford reveals what’s next for company

CEO of eXp World holdings addresses his critics about his agent referral program, where he is taking the company next and growth limiters for the brokerage.

Navigating Closing Struggles in 2021’s Purchase Market

Join this webinar to discover the most current information on hybrid and full eNote eClosings and discuss key criteria to successfully implementing your eClosing strategy.

Should lenders look to non-QM when the refi boom slows?

Angel Oak shared with HW how non-QM lending could be an effective way for lenders to replace lost business in the event of a refi boom slowdown.

Politics & MoneyMortgage

CFPB, FTC file 9 lawsuits against deceptive foreclosure firms

Regulators perform giant sweep of industry

The Consumer Financial Protection Bureau, the Federal Trade Commission and 15 states are filings 9 lawsuits against companies and individuals that collected more than $25 million in illegal advance fees with false promises to prevent foreclosures. The CFPB is filing 3 lawsuits, while the FTC is filing 6 lawsuits. 

This giant sweep against foreclosure relief scammers is an effort to seek compensation for victims, civil fines, and injunctions against the scammers.

In addition, the states are taking 32 actions.

“We are taking on schemes that prey on consumers who are struggling to pay their mortgages or facing foreclosure,” said CFPB Director Richard Cordray.

“These companies pocketed illegal fees — taking millions of hard-earned dollars from distressed consumers, and then left those consumers worse off than they began. These practices are not only illegal, they are reprehensible,” Cordray added.

There were three lawsuits filed:

1. The first lawsuit names Clausen & Cobb Management Company and owners Alfred Clausen and Joshua Cobb, as well as Stephen Siringoringo and his Siringoringo Law Firm.

2. The second lawsuit is against The Mortgage Law Group, the Consumer First Legal Group, and attorneys Thomas Macey, Jeffrey Aleman, Jason Searns, and Harold Stafford.

3. The third lawsuit is against the Hoffman Law Group, its operators, Michael Harper, Benn Wilcox, and attorney Marc Hoffman, and its affiliated companies, Nationwide Management Solutions, Legal Intake Solutions, File Intake Solutions, and BM Marketing Group.

The three groups are charged for allegedly violating Regulation O, formerly known as the Mortgage Assistance Relief Services Rule, which generally bans mortgage assistance relief service providers from requesting or receiving payment from consumers for mortgage modifications before a consumer has signed a mortgage modification agreement from their lender.

Some of the defendants are also charged for violating the Dodd-Frank Wall Street Reform and Consumer Protection Act, which generally prohibits deceptive practices in the consumer financial market.  

In order to prevent future foreclosure relief scams, the bureau released a Consumer Advisory guide to help consumers recognize red flags.

Most Popular Articles

Here it is: A bill to help first-time homebuyers

The newest iteration of a first-time homebuyer tax credit has several significant restrictions. And it’s not a tax credit.

Apr 15, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please