Oregon AG Shakes Refunds Out Of Loan Modification Outfit In Settlement Of Claims Of Illegally Pocketing Upfront Fees From Homeowners Facing F'closure

From the Office of the Oregon Attorney General:

• Attorney General John Kroger [] announced a settlement that prohibits a Los Angeles County company from doing loan modification work in Oregon. "This office will not tolerate companies that attempt to exploit Oregon homeowners who are facing foreclosure," said Deputy Attorney General Mary Williams.

• The Oregon Department of Justice began investigating Bank Modification Experts of Woodland Hills, California, after receiving consumer complaints that suggested the company was violating Oregon's Mortgage Rescue Fraud Protection Act by collecting advance fees for loan modification work aimed at preventing foreclosure. The company refunded several Oregon consumers. Bank Modification Experts eventually began doing business from Agoura Hills, California as Premier Legal Advocates.

• Under the settlement [...] Premier Legal Advocates paid $4,000 to the Oregon Department of Justice, refunded an Oregon consumer $2400 and must refund any other Oregon consumers who paid illegal advance fees. The company is also prohibited from doing any further foreclosure consulting or loan modification work in Oregon.

For the Oregon AG press release, see Oregon Bans Another Loan Modification Company (California-based Premier Legal Advocates charged illegal advance fees for loan modification services it subsequently failed to perform).