California Foreclosure Consultants Now Required To Register With State AG, Post $100K Bond

From the Office of the California Attorney General:

• Continuing his fight against scam artists who "prey on" vulnerable Californians, Attorney General Edmund G. Brown Jr. [Monday] issued a directive forcing foreclosure consultants to register with his office and post a $100,000 bond by July 1, 2009.(1) Those who fail to do so will be in violation of state law, subject to criminal penalties of up to a year in jail and fines ranging from $1,000 to $25,000 per violation. "California is awash with con artists who prey on vulnerable families facing foreclosure," Brown said. "By forcing foreclosure consultants to submit detailed information to my office and post a $100,000 bond, this registry will help bring long-overdue transparency to this shadowy world."

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• If the company violates the law, a court may order restitution to victims out of proceeds from the $100,000 bond. In order to obtain a Certificate of Registration by July 1, 2009, foreclosure consultants should send in their registration application and materials as soon as possible so they can be reviewed prior to July 1.

Go here for a copy of the registration forms.

For the entire press release, see Brown Directs Foreclosure Consultants to Register with his Office and Post $100,000.

(1) All foreclosure consultants operating in California must post a $100,000 bond and register with Brown's office by July 1, 2009 and submit the following information:

• Name, address, and telephone number;
• All names, addresses, telephone numbers, websites, and e-mail addresses used or proposed to be used in connection with their business;
• Copies of all advertising;
• Copies of each different contract the consultant will use with consumers; and
• A copy of its $100,000 bond. loan modification