Missouri AG Tags Loan Modification Firm With Allegations Of Clipping Homeowners For Illegal Upfront Fees; Seeks Restitution & Civil Penalties

The St. Louis Business Journal reports:

• Missouri Attorney General Chris Koster on Tuesday sued a St. Louis company that allegedly failed to offer the foreclosure relief and mortgage modifications it promised to Missourians. Koster said the company, Gateway Mortgage Modification, charged “large sums of money and promised it would negotiate a new, workable solution on the client’s existing mortgage, including a change in the terms of a loan in order to help the borrower stay in the home and avoid foreclosure.” But a state investigation found that the company took customers’ money and didn’t provide the services, Koster said.

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• Koster said Gateway has about 200 current clients and continues to solicit more business. [...] The company also requires upfront payments before services, which is illegal in Missouri. The lawsuit seeks restitution for customers and civil penalties.

Source: Koster sues Gateway Mortgage Modification.

For the Missouri AG's press release, see Attorney General Koster continues 'zero tolerance' stance on mortgage scams (Koster files suit to stop company from cheating people seeking foreclosure assistance and mortgage modification).