The Georgia Department of Banking and Finance issued a cease-and-desist order to mortgage lender Yale Mortgage Funding LLC for allegedly engaging in mortgage lending activities without a license.
Additionally, the Department reported that ESS Solutions acquired City Mortgage in April 2014 and changed its name to i3 Lending. The Department did not approve the use of a trade name for City Mortgage and therefore, cited it with operating without a mortgage origination license.
Phillip Danielson and his company, Danielson Law Group, along with other Utah based affiliated groups, charged fees and lured vulnerable consumers by promising legal help to avoid foreclosure or to obtain favorable loan modifications.
The FTC brought charges against these groups for collecting fees and offering to provide foreclosure rescue and loan modification services before homeowners had a written offer from their lender or servicer, deemed acceptable to the homeowners. These actions violate the FTC Act and the Mortgage Assistance Relief Services (MARS) Rule, now known as Regulation O.
Today, the FTC reported that the groups have settled. The proposed orders, settling the FTC charges, ban the groups from offering mortgage relief services and from participating in the debt relief industry.
At the FTC’s request, a U.S. district court temporarily halted the operation and froze corporate and personal assets. The FTC imposed a $28.6 million judgment, based on the amount of fees collected in the scam. The judgment will be suspended pending the surrender of certain assets, including a $200,000 house in Utah.
The Treasury Department will pay mortgage servicers more for modifying loans in an earlier stage of delinquency and less the longer the process takes, according to guidelines released July 6, 2011.
The guidelines, effective October 1, will be adopted by Fannie Mae when the Federal Housing Finance Agency releases the new mortgage servicing fee structures.
Through HAMP, a servicer receives $1,000 when a homeowner is placed in a verified income trial modification for three months before becoming permanent. Effective October 1, mortgage servicers will receive $1,600 if the trial starts before a loan becomes more than 120 days delinquent, $1,200 for loans between 121 days and 210 days delinquent and $400.00 for loans placed in the trial stage after being 210 days delinquent.
Servicers are prohibited from requiring borrowers to make past due payments before entering a trial modification which would result in a higher fee for the servicer.