California Man Surrenders Real Estate License Amid Allegations Of Pocketing Upfront Fees On Loan Modifications, Failing To Properly Handle Trust Funds

From the California Department of Real Estate:

• Whitfield Financial Services Inc. (Whitfield), which operated a statewide loan modification business, surrendered its real estate license in lieu of defending accusations of violations of the real estate law at an administrative hearing. The license surrender, effective December 21, 2009, effectively puts Whitfield and its designated broker, Raymond Lorenzo Jeter (Jeter), out of business.

• The license surrender comes on the heels of an accusation filed against Whitfield and Jeter by the California Department of Real Estate (DRE) accusing the licensees of failing to properly handle trust funds and illegally collecting advance fees in connection with loan modification services. Jeter was also separately accused of failing to exercise proper supervision over the activities of Whitfield. While Jeter admitted no wrongdoing by either himself or Whitfield for purposes outside of the DRE action, he nonetheless surrendered all license rights and can no longer engage in real estate brokerage activity, including loan modifications.(1)

For the press release, see California Department of Real Estate Shuts Down Loan Modification Company (Loan Modification Firm Surrenders License).

(1) Consumers who have been cheated out of money by Whitfield, Jeter, or any other licensed California real estate agent may be eligible to put in a claim with the Real Estate Recovery Account, a victim's fund administered by the California Department of Real Estate. According to its website, if a claim is granted, the applicant will be paid an amount for his or her actual and direct loss in a transaction, up to a statutory maximum of $50,000 per transaction, with a possible total aggregate maximum of $250,000 per licensee.