Loan Deals: News

I think the stories of Loan Modification companies getting sued will become very common in the coming months. As it stands everybody that was from the sub prime mortgage industry are trying to make money from Loan Modifications. The same people that caused this in the first place. I think the DRE is very much to blame here but till people get smart , you can go ahead and blame the lenders.

On Thursday, Minnesota Attorney General Lori Swanson filed lawsuits against two Florida companies that she said have ripped off troubled Minnesota homeowners.

Swanson alleged that IMC Financial Services and American Financial Corp., which is doing business as National Foreclosure Counseling Services (NFC), violated Minnesota law by charging upfront fees of as much as $1,850 to renegotiate mortgage terms and not doing so.

American Financial Corp. also has been sued by the attorneys general of Illinois and Colorado. In August, Swanson sued another mortgage foreclosure consulting firm based in Florida, as well as one based in New Jersey.

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Loan Modification illegal, Law, Sue

Reuters is reporting that Fox Business Network is suing the U.S. Federal Reserve in hopes of making public details on financial companies receiving federal funds.

Fox said it made an initial request on Nov. 10 last year under the Freedom of Information Act. The network asked for the identification of the financial institutions receiving funds and details on the collateral provided by these firms between August 2007 and November 2008.

The network made a second request on Nov. 18, asking for more information on financial firms that received lending from Fed programs. It also asked for the amount of collateral held by the Fed as of Nov. 14.

A Fed spokeswoman did not have a comment on the lawsuit.

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Mortgage Feds, Fox, Sue