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CFPB, FTC Penalize Green Tree For Alleged Servicing Violations

The Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) penalized national mortgage servicing company Green Tree Loan Servicing for allegedly mistreating borrowers attempting to avoid foreclosure on their homes, according to a joint announcement from the CFPB and FTC on Tuesday.

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FTC Files Separate Suits Against Three Mortgage Relief Companies

Three mortgage relief companies are in hot water after the Federal Trade Commission (FTC) charged them with using deceptive tactics to prey on distressed homeowners. The FTC filed three separate suits against Prime Legal Plans, American Mortgage Consulting Group, and Expense Management America for allegedly violating its Mortgage Assistance Relief Services (MARS) Rule, which prohibits certain practices commonly used by fraudulent mortgage assistance companies.

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Officials Recap Year-Long Effort of Distressed Homeowner Initiative

Federal officials jointly announced Tuesday the results of the Distressed Homeowner Initiative, which is the first nationwide effort focusing on fraud schemes that target struggling homeowners. Led by members of the Mortgage Fraud Working Group of the Financial Fraud Enforcement Task Force, the initiative spanned from October 1, 2011, to September 30, 2012. Federal officials revealed the efforts have led to 530 criminal defendants charged in 285 federal criminal indictments or informations filed throughout the U.S.

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FTC Returns $108M in Overcharges to Countrywide Borrowers

The Federal Trade Commission is mailing 450,177 refund checks worth almost $108 million to homeowners who were allegedly overcharged by subprime lender Countrywide. According to the FTC, homeowners who were in default were charged excessive and unlawful fees for services such as property inspections, lawn mowing, and other services meant to protect the lender's interest in the property. The agency alleges that Countrywide also added fees and escrow charges to the accounts of borrowers in bankruptcy without notice.

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Some MARS Stipulations No Longer Enforced

The Federal Trade Commission will no longer enforce most provisions set forth in the Mortgage Assistance Relief Services Rule, according to a recent statement. The MARS Rule required real estate agents to make several disclosures when assisting distressed homeowners in obtaining short sales from their lenders or servicers. The rule also banned advance fee collection and prohibited false or misleading statements. After the Rule was enacted by Congress, several real estate agents complained that the disclosures often confused homeowners or misled them.

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New FTC Rule Impacts Realtors’ Short Sale Business

A new rule from the Federal Trade Commission that aims to protect homeowners from mortgage relief scams may impact real estate professionals who represent clients involved in short sale transactions. The Mortgage Assistance Relief Services rule bans all upfront fees for renegotiating mortgage terms and mandates certain consumer disclosures. It is primarily directed at companies offering modification services, but the National Association of Realtors says certain conditions also apply to practitioners working with short sales.

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FTC to Collect $2.2M from Banned Loan Mod Companies

The Federal Trade Commission (FTC) reached a settlement this week with two companies and three individuals, who are now banned from the mortgage relief services business and must pay $2.2 million in assets for consumer refunds. The FTC filed the proposed consent order in the U.S. District Court for the Southern District of Florida. The move is part of the federal agency's efforts to thwart scams targeting homeowners seeking mortgage relief.

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FTC Charges National Operation with Deceiving Distressed Homeowners

As part of its crackdown on mortgage scams targeting homeowners facing foreclosure, the Federal Trade Commission (FTC) has charged a national operation with marketing bogus loan modification services. The complaint alleges that U.S. Mortgage Funding Inc., Debt Remedy Partners Inc., Lower My Debts.com LLC, and their principals mislead consumers to believe they are affiliated with or approved by consumers' lenders. They tell consumers not to contact their lenders and to stop making mortgage payments, claiming that falling behind on payments will demonstrate the consumers' hardship and need for a mortgage modification.

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Federal Trade Commission Requests Loan Servicing Records from Ocwen

The Federal Trade Commission (FTC) has requested documents and information from Ocwen Financial related to its loan servicing activities as part of a civil investigation, the company said in its annual regulatory filing with the Securities and Exchange Commission. The Florida-based specialty loan servicer, which focuses on bringing highly distressed loans back to performing status, is the latest mark in a number of investigations by government agencies targeting the mortgage servicing industry.

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