Another Company Sued By State For Charging Upfront Fees For Loan Mods
February 14th, 2009
Financial Management Advisors, a loan-modification company, charges up-front fees of up to $2,500 to troubled homeowners looking for help escaping foreclosure. The problem is that state law bars companies from charging the fees, and the company isn’t providing the services it promises, a complaint states.
Company attorney Luis Gonzalez says the company helps people and has never committed fraud.
“They’re barking up the wrong tree when it comes to FMA,” Gonzalez said.
The company — which also claims to be connected with major mortgage lenders, including Fannie Mae, Countrywide Financial and Lending Tree — has no documentation to support its claim, according to the state’s complaint.
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