State Goes After “Loan Modification” companies
Written by Theresa Brigleb on Monday, August 31, 2009
The Oregon Department of Justice reached settlements with National Homeowners Assistance Services, Inc., of Lake Forest, Calif., and American Mitigation Group, of Newport Beach, Calif. The companies offered to help people facing foreclosure to modify their mortgages. Attorney General John Kroger said the companies purposefully used tactics that could confuse homeowners, including implying they were affiliated with government agencies or programs. American Mitigation Group has paid $1,000 in restitution to an Oregon consumer and must pay an additional $3,000 to the Oregon Department of Justice for further restitution and to cover its costs. The company is no longer doing business in the state. National Homeowners Assistance Services must pay $4,000 to cover legal costs and must change its practices in order to continue to do business in Oregon.