Crackdown on For-Profit Loan Mod Firms
Six months ago, we highlighted a Washington Post story examining firms that charge struggling homeowners for help modifying their mortgages. Counselors and advocates say a borrower facing foreclosure should never have to pay for help, but those running the firms (which tend to be small) told the Post that they were providing a valuable service beyond what was available from nonprofits.
Well, the New York Times notes that both state and federal authorities have moved against a number of such firms in recent months. In the case of one New York firm, state Attorney General Andrew Cuomo has accused it of charging consumers upfront for mortgage help, which is against state law.
(By Paul Klein, ProPublica)