Nevavda Regulator Orders Two Loan Mod Rackets To Cease & Desist For Unlicensed Operation; One Outfit Improperly Pocketed Homeowner's Monthly Payments

In Carson City, Nevada, the Las Vegas Sun reports:

• Two Las Vegas companies advertising foreclosure services have been ordered to cease operating and fined $50,000. The state Division of Mortgage Lending claims Majestic Group LLC and Nevada Sky Premier LLC were not licensed to operate as covered service providers and bilked at least two unidentified clients. Jose Benjamin Rodriguez, listed as the head of the companies, has 20 days to contest the order by Commissioner James Westrin. The companies could not be reached for comment. One of their listed telephone numbers has been disconnected and no one answers the other.



• Majestic, 2300 W. Sahara Ave., advertised that it would help homeowners pay overdue mortgages, boasting "We are your last resort." One homeowner signed a contract with Majestic in March 2011 and made an upfront payment of $3,623. The homeowner then made $800 monthly payments for six months. Rodriquez told the homeowner the monthly payments would be forwarded to the mortgage service.



• A second homeowner signed a contract with Majestic in November 2010 and paid an upfront $3,498. The homeowner made $800 payments to Majestic for 10 months. The owner was then directed to send the payments to Nevada Sky and he did for six months.



• The complaint says the companies did not have a state license and that payments made by the second homeowner were never sent to the mortgage servicer. The home was foreclosed on.



• The state order directs Rodriquez and the companies to return $8,423 to the first homeowner and $16,298 to the second. The restitution must be made within 30 days. Westrin also imposed a $50,000 fine on Rodriquez and the companies.

Source: State fines foreclosure companies $50,000, orders them shut down.