Southern California loan modification companies being looked at for fraud
kcra has an article titled Loan Modification Companies Under Microscope where it looks at two loan modification companies, Loan Review Inc and Resolution Mortgage Group for illegal activity.
Last year, the department had 10 open investigations into loan modification companies. As of July, it has more than 800 and has already taken action against 200 companies for unlicensed or illegal activity.
According to the law, brokers can only take up front fees if they have an advanced fee agreement reviewed with no objection on file with the California Department of Real Estate.
“Their promise to me was they will modify the loan on my house,” said Brian Glasglow, a homeowner who hired Roseville-based Loan Review Inc. and another company called Resolution Mortgage Group.
Glasglow paid $2,000 up front, or $1,000 to each company. He said they did nothing to help him secure a loan modification on his home.
According to the Department of Real Estate, only licensed real estate brokers and attorneys can perform loan modifications in California.
