Prosecutors said inactive attorney Christopher Lee Diener, 42, and his partners Stefano Joseph Marrero, 40, and Terrence Green Sr., 43, are each charged with one felony count of conspiracy to commit grand theft and 97 felony counts of grand theft by false pretense.

They also face sentencing enhancements for white collar crime and excessive taking, and, if convicted, could receive a sentence ranging from probation up to 70 years in state prison.

Diener and Green were arrested this morning and are being held on $1.5 million bail each. They must prove the money is from a legal and legitimate source before posting bond, and prosecutors said the two are expected to be arraigned tomorrow. A $1.5 million warrant has been issued for Marrero’s arrest.

Beginning in March 2008, the defendants allegedly defrauded hundreds of victims by offering loan modification services in exchange for advance payment.

Marrero and Green were business partners and Diener acted as attorney for their businesses. The three are neighbors in Ladera Ranch and are accused of operating loan modification businesses under the names Home Relief Services, LLC, US Loan Mod Processing, HRS Communications, The Diener Law Firm, and Diener Law Group.

Over a six-month investigation, 5 Investigates found dozens of people victimized by scam loan modification companies.

Fernando Sanchez was one of the victims. He was barely making ends meet when he heard about an opportunity to reduce his mortgage, from $2,300 per month to $900 per month.

“They told me to go to this meeting to see what it was about … and these people allegedly have an attorney and a translator,” he said.

Sanchez paid $1,000 to sit in a garage in a residential neighborhood set up with tables and chairs for the meeting. The attorney charged $6,000 for the loan modification.

To read the full article go here to kpho’s website.

NEW YORK - Chase today announced that it is opening 24 more Chase Homeownership Centers in the next four months to provide face-to-face help to thousands more homeowners who are struggling with their mortgage payments. That will bring the total to 51 Chase Homeownership Centers in 14 states and Washington D.C.

“Our first 27 centers have proven to very effective in reaching families who are facing financial hardship and have fallen behind on their mortgages. So, we are adding more locations to help more homeowners with their loans, including working with them to complete and assemble all the documents we need to provide permanent payment relief” said Charlie Scharf, head of Retail Financial Services at Chase, the consumer business of JPMorgan Chase.

Chase is the only major mortgage servicer that has opened a large network of face-to-face centers to help struggling homeowners understand their options and help pull together paperwork for loan modifications. Borrowers can schedule appointments or simply walk in six days a week. In 11 months, Chase Homeownership Centers have served more than 60,000 borrowers.

Using languages including Spanish and Vietnamese, center staffers also reach out to homeowners through hundreds of community foreclosure-prevention fairs and through non-profit counselors. In addition, Chase has mailed 538,000 letters to struggling borrowers living near a center.

Responding to the needs of homeowners who have been hit hard by the housing and economic downturns, Chase will have centers in six new markets:

* Cleveland, 1500 West 3rd St.
* Dallas, 12750 Merit Dr.
* Houston, 11550 Fuqua St.
* Boca Raton, Fla.
* Ft. Lauderdale, Fla.
* Seattle, Wash.

In addition, Chase will open 18 Chase Homeownership Centers to supplement existing centers. A total of seven new Chase Homeownership Centers will be in California, bringing the total number of Chase centers in California to 16; the six additional Florida centers will make the total 11.

In 2009, Chase approved more than 568,000 new trial modifications under the U.S. Making Home Affordable Program, its own modification program and Fannie Mae, Freddie Mac, VA and FHA programs.

For information, borrowers struggling with Chase, WaMu or EMC-serviced loans can go to www.chase.com/myhome or call (866) 550-5705.

Chase services about 10.3 million loans, including about 8 million loans for investors.

About Chase
Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), which operates more than 5,100 branches and 15,000 ATMs nationally under the Chase brand. Chase has 146 million credit cards issued and serves consumers and small businesses through bank branches, ATMs and mortgage offices as well as through relationships with auto dealerships and schools and universities. More information about Chase is available at www.chase.com.

What if you have already applied or been turned down for a Wells Fargo loan modification?  Even if you have previously applied, you can still apply under the federal Making Home Affordable Plan.  You just need to become familiar with the eligibility requirements and make sure to fill out a complete and accurate loan application package.

A Wells Fargo loan modification may involve a reduction in the interest rate you are paying on your loan, having your loan term extended for up to 40 years, or having part of your principal balance deferred.  These loan modification options may be available to you and result in a new loan payment that is 31% of your monthly gross income.    Under the Obama Making Home Affordable Plan, you do not need to negotiate a loan modification agreement.  Everyone is given the same options, as long as you qualify.  However, you still do need to submit an accurate and complete loan modification application.

There are also representatives available to help you through the Housing and Urban Development Department (HUD).  The counselors will help explain the program but do not help you with completing your Wells Fargo loan modification application.  So you will still need to take the time to become familiar with Wells Fargo’s loan modification application requirements and the loan modification process in general to ensure that your application is filled out properly to give yourself the best chance of having Wells Fargo approve your loan modification request.

If you are interested in applying for a Wells Fargo loan modification, you will need to be prepared to write an effective hardship letter, stating clearly and concisely what your financial hardship is that is making it difficult to make your current monthly mortgage payments.  You will also need to be able to provide proof of your income and expenses as well as fill out all the forms in the Wells Fargo loan modification application in an accurate and complete manner.  Taking time to learn about the loan modification process and submitting an accurate, complete and persuasive loan modification application will greatly increase your chances of your Wells Fargo loan modification being approved.

According to The S.C. Department of Consumer Affairs, Hope Now Modifications, a New Jersey-based company is among the businesses accused of ripping off state residents.

The company is being blamed for misleading consumers about their ability to provide mortgage relief. Consumer affairs says the company is also being investigated for failing to issue refunds.

The agency has received complaints on dozens of companies that fail to comply with the state’s strict licensing guidelines.

Read the full article here: http://www.wltx.com/news/story.aspx?storyid=78973&catid=299

Julian James Ruiz III, 38, is the manager and owner of American Home Modifications, a Salem-based loan modification company. He faces 17 counts of first degree aggravated theft, mortgage fraud, identity theft, aggravated identity theft, forgery in the first degree and criminal possession of a forged instrument in the first degree.

“We intend to prosecute mortgage fraud aggressively. If you cheat vulnerable Oregonians facing foreclosure, we will hold you accountable,” said Attorney General John Kroger in his announcement of the indictment.

Kroger said this was the first indictment by his office’s task force.

He added that Ruiz will not be able to complete the loan projects with his customers, who are advised to talk with a HUD-approved counselor to avoid pending foreclosure or defaults. Consumers can call 800-SAFENET or 800-723-3638 to find a counselor, including Spanish-speaking counselors, at: http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=OR.

But what about the places the pieces of shit actually help?

There are countless stories about Obama’s plan failing, and in case you have been living under a rock then let me update you. Obama’s plan has failed miserably. Recently second-most powerful Democrat in the Senate called the Obama administration’s mortgage modification program a “waste of time”. Others are voicing their opinion at the banks for their un-willingness to help, and last but not least the FTC is going after the “pieces of shit companies” that actually might be helping these borrowers?

With banks like Bank of America only modifying up-to 7% of the loans eligible for the government’s Making Home Affordable Program, what makes the FTC and attorneys think that these loan modification companies are actually scams?

Let me play devils advocate here. Once again I am not a fan of Loan Modification companies, in fact, I probably hate them more then the FTC and the government… but let’s for one second pretend that they are actually trying to help home owners.

Recently the California Attorney General released information on “Operation Loan Lies”, a task force that took down some suspected loan modification scam companies. One of the companies according to the press release found here opened some 2960 loan modification files but only completed 311 of them. Wait… what? That’s over 10%. What about BofA’s 7% closing ratio?

The press releases like the one above and others go on to say companies “fraudulently charge upfront fees” to d loan modifications and fail to complete the work.

What if, the problem here isn’t necessary the loan modification companies, but the banks?

The FTC is actively going after loan modification companies who they claim are really scams, but fact remains is most of these home owners that are being helped would probably be losing their homes if it weren’t for these scammers.

Another company in California, Castle Home Loans, is also accused of failing to modify loans. However the press release and article show that they in fact have helped customers with their loan modification, just not enough to stay under the radar apparently.

I think one large point that nobody seems to remember is a lot of the home owners that are having this problem in the first place should have never gotten a home to begin with, through fraudulent means or other. Option Arm’s SISA 95% LTV. Really?

Anyway, fact remains is shit is hitting the fan, I just think that people NEED help and the FTC and DOJ should be selective about who it closes down. A company that has modified 10% of their loans has an active pipeline, and people who are working on files somehow seem like one of the good guys.  Unlike the BofA’s out there who are refusing to help even with guaranteed  funds from the government.

The problem is the same one that has plagued loan modifications from the start: Lenders don’t want to write down loan balances. There’s no cramdown provision in bankruptcy court to force them to do so, thanks to opposition in Congress and inaction by the Obama administration.

Yet, as loan modifications fail to stem the foreclosure crisis, the government continues to offer financial incentives to servicers and calls them to Washington occasionally to give them a hard time about not doing more loan mods.

And in the end, here’s what we’re left with, according to USA Today:

Raising consumers’ awareness of foreclosure “rescue” scams will give borrowers more confidence in knowing they are working with legitimate counselors and servicers to obtain a loan modification that could help them avoid foreclosure.

The FDIC’s foreclosure prevention toolkit includes:

? Is Foreclosure Knocking at Your Door? brochure, which encourages consumers facing financing difficulties to contact their servicer, apply for a loan modification, and talk to a counselor.
? Beware of Foreclosure Rescue Scams brochure, which provides information on common scams, tips for detecting fraudulent deals, and resources for reporting criminal activity.
? Spring 2009 edition of FDIC Consumer News, which features advice for consumers on avoiding foreclosure rescue and loan modification schemes.
? Your Own Home module of the FDIC’s Money Smart curriculum, which offers tips and advice on avoiding foreclosure with a loan modification, preventing foreclosure “rescue” scams and providing legitimate sources of foreclosure prevention assistance.

For more information please visit: http://www.fdic.gov/foreclosureprevention

Rene Alvarez, 39, of San Jose was taken into custody Thursday by investigators from the Santa Clara County District Attorney’s Office. The investigators are looking for co-owner Mariano Ortega, 34, also of San Jose.

The two have owned M & R Contemporary Solutions since mid-2008.

They lured 500 homeowners throughout California, mostly Hispanic, to participate in a “principal reduction” program that may have generated more than $2 million in fees for the company, according to the district attorney’s office.

Prosecutors say Alvarez and Ortega promised clients they could save their homes from foreclosure by arranging the purchase of their loan by a third-party at a discounted rate. They offered the clients a new principal loan that would lower their monthly mortgage payments, authorities said; the clients paid thousands of dollars each in fees upfront.

But according to former M & R employees, no homeowner was ever helped, the district attorney’s office said in a news release.

Investigators served search warrants at the company’s two Campbell offices. M & R’s bank accounts have also been frozen in an attempt to recover some of the money, the district attorney’s office said.

Prosecutors asked anyone with information on Ortega’s whereabouts or the case to contact Bob Traskowski, an investigator with the district attorney’s office, at 408-792-2938 or btraskowski@da.sccog.org.

source of article is sj news

On February 18, the Obama Administration announced its comprehensive plan to stabilize the U.S. housing market.  Two weeks later on March 4, the Administration published detailed program guidelines and authorized servicers to begin modifications immediately.  MHA provides $75 billion for sustainable mortgage modifications through the Home Affordable Modification Program (HAMP). 

MHA has made rapid progress in a few short months.  Servicers covering more than 85 percent of loans in the country are already modifying loans under the program. More than 400,000 modification offers have been extended and more than 230,000 trial modifications have begun.  This pace of modifications puts the program on track to offer assistance to up to 3 to 4 million homeowners over the next three years, our target on February 18.  

Today’s report discloses performance on a servicer-by-servicer basis in order to increase transparency for participating institutions.  The data show that servicer performance has been uneven.  The Administration has asked servicers to ramp up implementation to a cumulative 500,000 trial modifications started by November 1, 2009. This would more than double in three months the number of trial modifications started in the first five months of the program.   

The Administration is taking additional steps to improve performance.  On July 9, Treasury Secretary Tim Geithner and Housing and Urban Development Secretary Shaun Donovan wrote the CEOs of participating servicers calling upon them to redouble their efforts to increase staffing, improve borrower response times and streamline the application process.  Senior Administration officials discussed the importance of these steps in a face-to-face meeting with servicer executives on July 28.  The Administration will develop more exacting metrics to measure the quality of borrower experience, such as average borrower wait time for inbound inquiries, completeness and accuracy of information provided applicants, and response time for completed applications.  As an additional protection for borrowers, the Administration has asked the program compliance agent, Freddie Mac, to develop a “second look” process to audit MHA modification applications that have been declined on an ongoing basis.

To view the full report in pdf click here

“It’s pretty obvious this is a fishy operation,” said notary public Paul Mees, who was contacted by 21st Century to handle a loan modification.

Mees and Zana Darrow, another notary public, complained to the state consumer protection bureau and Department of Financial Institutions.

They were suspicious because 21st Century insisted that the notaries not leave any paperwork with the customers, even copies of documents the customers signed.

The company uses Yahoo e-mail addresses for its employees, and the name of the firm seems to be in flux. A woman who answered the phone said the company was called Transitional of America. Another man said it would soon be going by Fidelity National.

Public Investigator got ahold of Garrett Reed, a supervisor at 21st Century.

Reed said he’d look into Gibas’ case but never called back and didn’t return follow-up calls. At least five other messages left for representatives of the company were not returned.

In an earlier interview, Reed insisted the company is legitimate and has negotiated many loan modifications. Problems pop up only when consumers aren’t truthful about their income or financial situation, he said.

 

“There’s the good and the bad out there,” Firoved said about modification companies. “If you’re going to use a third-party service for a loan modification, go to the state authorities and check to make sure there are no complaints. Move forward cautiously.”

Pool said several companies don’t heed the state Real Estate Department’s desist and refrain orders.

“A lot of these companies are just crooks,” he said.

The department issued 328 desist and refrain orders and accusations from October to July - 240 of them in the Los Angeles-Orange County- Inland Empire region.

They order unlicensed shops to shut down their loan modification or foreclosure rescue business and force dubious companies to stop collecting upfront fees.

“The list grows weekly,” Pool said.

TAYLORSVILLE, N.C. — When Newschannel 36 first aired a story on the North Carolina Attorney General’s office’s investigation of two loan modification companies, Richard Green had just written his checks to one of them.

Green says 21st Century Legal Services contacted him, and offered a 30-year fixed rate loan at 4 percent. “My payment is $665, they said it would be $305, and I thought, ‘Yeah, that’s what I need right now,” Green told Newschannel 36.

His wife has had several back surgeries and is out of work. The Greens were one month behind on their mortgage when they got the call.

Green wrote four checks for nearly $500 each. According to paperwork he showed Newschannel 36, that money was for a $750 processing fee and 4 payments of the $306.66 for July thru September. That is the same amount he was told could be his modified mortgage. He says he was told to stop paying his mortgage while 21st Century Legal Services worked its magic.

read the full article here

Mach said most of the Wisconsin residents who complained asserted that the Federal Loan Modification Law Center had promised refunds if it wasn’t able to modify their mortgage. When they asked for refunds, they did not get them, Mach said.

If the order is ignored, Mach said, the case probably will end up going to the state attorney general for pursuit of forfeitures.

The Federal Loan Modification Law Center couldn’t be reached for comment Wednesday.

Mach advised homeowners who are having trouble making mortgage payments to always try to talk with the lender directly.

The Federal Loan Modification Law Center is the subject of a federal lawsuit in California filed by the Federal Trade Commission. In April, the FTC charged the firm with misrepresenting that, in exchange for an up-front fee, it would obtain a loan modification or stop foreclosure in virtually all cases. The FTC said the firm also misrepresented that it is affiliated with or endorsed by the U.S. government.

This is the second time we have mentioned Federal Loan Modification Law Center, the first being here in our loan modification scam article

Read the full article here

Some of the companies involved in the operation:

Lucas Law Center allegedly used an attorney to circumvent state prohibitions against receiving a fee before providing any services; the defendants charged up to $3,995 in advance. In addition to falsely representing that they would obtain mortgage loan modifications, the defendants told some homeowners to stop paying their mortgage in order to pay the defendants’ fee. Consumers obtained promised refunds only after repeated complaints to the Better Business Bureau, the California Attorney General, the State Bar of California, or local criminal authorities. The court immediately barred the practices and froze the corporate defendants’ assets, pending a hearing.

Loss Mitigation Services marketed primarily through direct mail solicitation. The defendants allegedly targeted consumers whose mortgage payments have increased, who have made late payments, and whose homes were in foreclosure. They charged up to $5,500 in advance and promised that a loan modification was assured or virtually assured if consumers hired them. The defendants also misrepresented that they were a department of, or affiliated with, the consumer’s lender or mortgage servicer. In many cases, they failed to obtain loan modifications for consumers, some of whom lost their homes while waiting for the promised results.

The FTC alleged that Internet company Apply2Save charged consumers up-front fees of up to $995, claiming they could obtain a loan modification in 30 to 90 days. In fact, they did not obtain loan modifications for most consumers and were unable to stop foreclosures. In most cases, the defendants failed to contact or follow-up with consumers’ lenders. Consumers waited months with no action on their loans, while the defendants lied and told them that the lenders had lost their papers. The defendants have agreed to a court order barring further unlawful practices, pending trial.

In addition to these cases, the FTC reached a settlement with Foreclosure Solutions, LLC and Timothy Buckley, who claimed that, for a fee often exceeding $1,000, they would stop foreclosure (see press release dated April 29, 2008). Many consumers who paid the fee ultimately lost their homes, and others avoided foreclosure only through their own efforts. The settlement order prohibits the defendants from misrepresenting that any foreclosure can or will be stopped, postponed, or prevented, or the likelihood that these results will be obtained; the degree of past success of any efforts to achieve these results; the likelihood that a consumer will receive a full or partial refund if these results are not obtained; an ability to help all consumers, regardless of their individual circumstances; the number of satisfied customers or customer complaints; the terms of any refund or guarantee; and any other fact material to a consumer’s decision to purchase a foreclosure rescue service.

You can read the entire press release here

Philly.com is reporting that the state has gone after two (not twenty), but two corporations involved in what they say is loan modification fraud.

“In both cases, the defendants took advantage of desperate people who looked to them for help,” Milgram said. “They gained the trust of their victims through deceptive advertising and misleading sales pitches, then collected thousands of dollars in unlawful fees and provided nothing in return but empty promises and added financial misery.”

Named in the first case are attorney Ejike N. Uzor, who practices in Linden and Newark, and Stephen Pasch of Green Brook Township.

The complaint accuses Uzor and Pasch, along with seven corporations, of violating fraud, advertising, and federal debt counseling laws.

According to the lawsuit, from roughly September 2008 through March 2009, the Newark-based companies used Web-based advertising, radio ads and telephone calls to find homeowners in financial straits.

 Loan modification scams are nothing exclusive to just california.

In the second case, the state accused mortgage lender BIRMCO, based in Haddon Township, of similar offenses dating back to November 2008.

Milgram said BIRMCO used direct mail solicitations, which included a homeowner’s specific mortgage information, to urge distressed homeowners to call.

Customers were promised that BIRMCO would negotiate a lower interest rate and lower monthly payments. Like the other lawsuit claimed, consumers were charged an upfront fee of several thousand dollars and promised a refund if BIRMCO failed to obtain a modified loan agreement. Customers were again told to stop making mortgage payments and to avoid contacting their lenders , purportedly to strengthen their position in seeking loan modification.

“The loan modification industry is teeming with confidence men and charlatans, who rip off desperate homeowners facing foreclosure,” Brown said in a release. “Despite firm promises and money-back guarantees, these scam artists pocketed thousands of dollars from each victim and didn’t provide an ounce of relief.”

“The loan modification industry is teeming with confidence men and charlatans who rip off desperate homeowners facing foreclosure,” he said. “Despite firm promises and money-back guarantees, these scam artists pocketed thousands of dollars from each victim and didn’t provide an ounce of relief.”

Brown’s lawsuit contends that the defendants violated a few laws including:

• California Business and Professions Code section 17500 by claiming a 95 percent success rate and promising consumers significant reductions in the principal balance of their mortgages;
• California Business and Professions Code section 17200 by failing to perform on promises made in exchange for upfront fees;
• California Civil Code section 2945.4 for unlawfully collecting upfront fees for loan modification services;
• California Business and Professions Code section 2945.3 by failing to include cancellation notices in their contracts;
• California Civil Code section 2945.45 by not registering with the Attorney General’s office as foreclosure consultants; and
• California Penal Code section 487 for grand theft.
• Violated California’s credit counseling and foreclosure consultant laws, Civil Code sections 1789 and 2945
• Inserted unconscionable terms in contracts;
• Engaged in improper running and capping, meaning that Roth improperly partnered with United First, Inc. and Noe, who were not lawyers, to generate business for his law firm violating California Business and Professions Code 6150; and
• Violated 17500 of the California Business and Professions Code.

source: press release

As the number of foreclosures continues to grow, a new “industry” has emerged seeking to profit from desperate homeowners who are trying to save their homes. For-profit loan modification services claim to help homeowners obtain changes in the terms of their mortgage loans that will make the loan more affordable and, thereby, help the homeowner save their home from foreclosure. Unlike older foreclosure rescue scams that seek to bilk homeowners of their equity, loan modification scams are more interested in homeowners’ spare cash. They make extravagant and unverifiable claims regarding their ability to help but too often the homeowner gets nothing after paying thousands in fees they can ill afford to spare.

While waiting for loan modifiers to deliver the promised relief, homeowners not only lose their money but may also fall deeper into default and lose valuable time that could have been spent negotiating directly with their mortgage servicer or by going to free a HUD-certified housing counseling agency with true expertise in avoiding foreclosure. For-profit loan modification companies are flourishing because mortgage loan servicers cannot or will not meet borrower need for assistance with their mortgages.

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.