Banking Department Takes Action Against Mortgage Modification Companies
Companies ordered to stop unlicensed activity in Pennsylvania
HARRISBURG, Pa., April 22 /PRNewswire-USNewswire/ — The Department of Banking recently ordered four out-of-state mortgage modification companies to stop engaging in unlicensed activity in Pennsylvania.
The department issued cease and desist orders against Consumer Loan Modification of Arizona and U.S. Settlement Services of Florida on April 10 and Federal Loan Modification Law Center LLC of California on April 14. All three companies advertise on their Web sites to refinance mortgage loans in Pennsylvania when they are not licensed to do so. The companies must comply with the orders or file appeals by the end of April.
The department also entered into a consent agreement and order with Nationwide Foreclosure Prevention Center, LLC of New Jersey and its owner, Robert P. Valentin, to stop doing business in Pennsylvania. The company was fined $2,000. Valentin is prohibited from engaging in the mortgage business in Pennsylvania for five years and must refund fees that he collected from Pennsylvania consumers within 90 days. The department also cited Valentin for unlicensed activity in 2008 under the name Justice Mortgage.
The Department of Banking reminds homeowners that they can receive free help from a certified housing counseling agency by contacting the Pennsylvania Housing Finance Agency at 1-800-822-1174 or www.phfa.org. Homeowners can also speak directly with their loan servicer to discuss options to avoid foreclosure.
EDITOR’S NOTE: Copies of the enforcement actions for Consumer Loan Modification, U.S. Settlement Services, Federal Loan Modification Law Center LLC and Robert P. Valentin and Nationwide Foreclosure Prevention Center, LLC are available at www.banking.state.pa.us.
The mission of the Department of Banking is to protect the public from financial abuse, promote financial education, ensure the safety and soundness of depository institutions and foster a strong economy for all Pennsylvanians. The Department reminds parents that children should know the difference between wants and needs. Kids may “want” many things, but “need” far less.
CONTACT: Ed Novak, (717) 783-4721
SOURCE Pennsylvania Department of Banking
