NJ AG Gets $11M+ Judgment Against Foreclosure Rescue Operator Who Screwed Financially Strapped Homeowners With Bogus Loan Modification Services

From the Office of the New Jersey Attorney General:

• Attorney General Paula T. Dow and Division of Law Director Robert Hanna announced today that a New Jersey loan modification company and its owners have agreed to an $11.45 million judgment to settle civil charges they defrauded homeowners who sought help in staving off mortgage foreclosure.(1)

• Defendant New Hope Property, LLC, of Bellmawr, Camden County, has agreed to a judgment of $10 million to settle allegations its company, New Hope Modifications, took money up front from customers in return for promised mortgage rescue help – a prohibited business in New Jersey. In addition, New Hope is permanently barred under the settlement from selling debt adjustment, loan modification or foreclosure relief services in New Jersey.(2)

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• “This is an important outcome, one that should send a clear message to anyone who may be tempted to seek profit in the financial misery of others during these tough times,” said Attorney General Dow. “We are committed to identifying and investigating this type of fraud, and we will take appropriate action where we find it.” “This company, and these individuals, made money by selling false hope to trusting people during their darkest financial hour,” Dow added. “It is appropriate that their professional licenses are revoked, and that they will never again be permitted to operate in our state.”

For the New Jersey AG press release, see Attorney General, DOL Director Announce Settlement in Mortgage Fraud Case; Loan Modification Company, Individuals Agree to $11.4 Million Judgment.

For the consent judgment, see Dow, et al. v. New Hope Property, LLC, et al.

For the original lawsuit, see Milgram v. New Hope Property LLC d/b/a New Hope Modifications.

(1) Filed in March 2009 in New Jersey Superior Court in Camden County, the state’s original four-count lawsuit charged New Hope with violations of the Consumer Fraud Act, state advertising regulations and the Debt Adjustment and Credit Counseling Act. The state’s investigation revealed thousands of victims nationwide.

(2) According to the press release, Brian Mammoccio, identified as a registered agent of New Hope in New Jersey, agreed to a $1.2 million judgment to settle allegations against him. Mammoccio, of Mullica Hill, Gloucester County, has also consented to the revocation of his mortgage solicitor’s registration, and has agreed to never again apply for any license, registration or authority from the state Department of Banking. Donna Fisher, also identified as a registered agent of New Hope, must pay the state $250,000 and has consented to revocation of both her individual lender’s license and her mortgage solicitor’s registration. Fisher, also of Mullica Hill, has agreed to never again apply for any licensure from the Department of Banking.