|
Defendant
|
Plaintiff
|
Court
|
Amount
|
Overview
|
Case Title |
Case Number
|
Date Filed |
Link to Story |
| Home Owner Protection Economics Inc., DC Financial Group, Deleverage America Inc., Dennis Fischer and Christopher S. Godfrey |
Pam Bondi, Florida Attorney General |
Palm Beach County Circuit Court, Florida |
n/a |
Defendants were sued in May for allegedly charging up-front fees ranging from $495 to $2000 for loan modification services that were never rendered. |
n/a |
n/a |
04/29/11 |
www.mortgagedaily.com/LitigationForeclosureFirms063011.asp |
| Kirkland Young, LLC, a limited liability company, David Botton, individually and as a manager of Kirkland Young, LLC, April Botton Krawiecki, Samy Botton, and Attorney Aid LLC |
Federal Trade Commission |
United States District Court, Southern District of Florida |
$6,100,000 |
A $2.2 million settlement was announced by the FTC in April with Kirkland Young LLC and a manager at the firm, David Botton. The agreement settles November 2009 charges that Defendants misrepresented themselves as mortgage servicers, lenders and affiliates and promised to obtain modifications. |
Federal Trade Commission v. Kirkland Young, LLC, et al. |
09-CV-23507, FTC file No. 092 3162 |
09/18/09 |
www.mortgagedaily.com/LitigationMods062711.asp |
| Robert Daniel Hayes and Jane Doe Hayes, d/b/a Mediation Services, Camerin Charles Hawthorne and Jane Doe Hawthorne, d/b/a Metropolis Loans and the Bankruptcy Store |
The State of Arizona, ex rel. Thomas C. Horne, Attorney General |
Superior Court of the State of Arizona in and for the County of Maricopa |
n/a |
Arizona’s attorney general asked the judge to prohibit Defendants from unlawful modification practices. Defendants allegedly kept collecting advance fees of around $2,500 per borrower even after a federal law enacted on Jan. 31, 2011, prohibited up-front fees. Plaintiff also alleges that Mediation Services falsely represented that it was affiliated with consumers’ lender CitiMortgage, that consumers were pre-approved for a modification, and that attorneys would represent its clients in getting a loan modification. |
Arizona v. Robert Daniel Hayes et al. |
CV2011-009102 |
04/27/11 |
www.mortgagedaily.com/LitigationMods062711.asp |
| The Guardian Group, LLC, Bryan Prehoda and Christy Prehoda, Louis Belevan and Jane Doe Belevan, and Jose Carreon and Jane Doe Carreon |
The State of Arizona, ex rel. Thomas C. Horne, Attorney General |
Superior Court of the State of Arizona in and for the County of Maricopa |
$25,000,000 |
Arizona’s attorney general obtained a default judgment, including a $25 million civil penalty, against the operators of Guardian Group LLC — Brian Prehoda and Louis Belevan. The Scottsdale-based firm allegedly collected up-front fees of $1,595 from each of nearly 2,500 borrowers in exchange for promising to reduce principal balances by negotiating with lenders–though the negotiations never took place. |
In the Matter of Unlicensed Activity of: The Guardian Group LLC, AKA The Guardian Group Fund, AKA Guardian Group, N.A., and Luis Belevan and Bryan Prehoda |
10F-BD048-BNK |
07/27/10 |
www.mortgagedaily.com/LitigationMods062711.asp |
| First Universal Lending, Inc. |
Chris Koster, Attorney General for the State of Missouri |
Jackson County Circuit Court, Missouri |
$74,000 |
Attorney General of Missouri, Chris Koster, obtained a judgment ordering First Universal Lending to pay $51,000 in restitution and $23,000 in civil penalties for charges of mortgage modification fraud. |
State of Missouri ex rel. Chris Koster v. First Universal Lending, LLC |
n/a |
08/11/09 |
www.mortgagedaily.com/SettlementFtc062111.asp |
| First Universal Lending, LLC, a limited liability company, Sean Zausner, individually and as owner, officer, or manager of First Universal Lending, LLC, David Zausner, individually and as owner, officer or manager of First Universal Lending, LLC, and David J. Feingold, individually and as owner, officer or manager of First Universal Lending, LLC |
Federal Trade Commission |
United States District Court for the Southern District of Florida |
$18,800,000 |
A Florida mortgage firm and its owners have agreed to a settlement of almost $19 million over allegations that they deceived delinquent borrowers, collected huge up-front fees and told borrowers to stop making mortgage payments so that they could obtain a loan modification. The FTC alleged that the Defendants did little or nothing to help borrowers. |
Federal Trade Commission v. First Universal Lending, LLC et al. |
09-CV-82322; FTC File No. 092 3130 |
11/18/09 |
www.mortgagedaily.com/SettlementFtc062111.asp |
| Aurora Loan Services LLC, Timothy F. Geithner, in his capacity as United States Secretary of the Treasury, Department of the Treasury; Herbert Allison, Jr., in his capacity as Assistant Secretary for Financial Stability, U.S. Department of the Treasury; Edward DeMarco, in his capacity as Acting Director, Federal Housing Finance Agency; Federal National Mortgage Association; Michael J. Williams, in his capacity as President and Chief Executive Officer, Federal National Mortgage Association; Eric Shuppenhauer, in his capacity as Senior Vice President, Federal National Mortgage Association |
Doreen Edwards, Olubukolo, Garry Brewster, Maria and Thomas Vellucci, individually and on behalf of all others similarly situated |
United States District Court for the District of Columbia |
n/a |
The complaint, filed by New York borrowers who were denied loan modifications under HAMP, was dismissed by U.S. District Court Judge Barbara Rothstein, who found that Plaintiffs lacked standing to sue. Plaintiffs’ complaint alleged that they defaulted on their mortgages because their non-agency loans did not qualify for HAMP modifications even though the borrowers were qualified. |
Edwards et al. v. Aurora Loan Services, LLC et al. |
1:09-cv-02100-BJR |
03/04/10 |
www.mortgagedaily.com/LitigationMods062711.asp |
| Bank of America Home Loans and BAC Home Loans Servicing, LP |
Estate of Susannah R. Boswell; Louis Suravitz, as independent administrator, and Louis Suravitz, an individual |
In the County Court at Law #1, of Tarrent County, TX |
n/a |
Plaintiffs’ lawsuit alleges that Bank of America bungled communications, bombarded Suravitz with collection calls and gave him a modification that wound up increasing his monthly payments by $10. |
Estate of Susannah R. Boswell et al. v. Bank of America Home Loans |
2011-002856-1 |
04/15/11 |
www.mortgagedaily.com/LitigationMods062711.asp |
| Carrington Mortgage Services, LLC, C/O CT Corporation System |
State of Ohio, ex rel. Richard Cordray Attorney General and the Ohio Department of Commerce, ex rel. Kimberly A. Zurz, Director |
In the Court of Common Pleas, Franklin County, Ohio |
n/a |
An Assurance of Voluntary Compliance and Settlement Agreement was announced resolving the lawsuit filed by the State of Ohio against Carrington. Carrington must establish a set of minimum mortgage servicing standards that include a single point of contact for modification prospects, specific modification timelines and a temporary suspension of foreclosures after a modification application is completed. Carrington must also implement an internal review process for denied modifications. |
In the Matter of Carrington Mortgage Services, LLC |
09-CV7-11433 |
07/31/09 |
www.mortgagedaily.com/LitigationMods062711.asp |
| CitiMortgage Inc. |
William T. Whiting, on behalf of himself and all others similarly situated |
United States District Court for the Eastern District of Pennsylvania |
n/a |
A class action lawsuit was filed by Berger & Montague P.C. against CitiMortgage. Defendant allegedly “systematically slows or thwarts homeowners’ requests to modify mortgages.” Plaintiffs are borrowers who entered into trial Home Affordable Modification Program (“TARP”) modifications since April 13, 2009, made payments required by TARP and submitted required documentation, but were never approved for a modification. |
William T. Whiting, et al. v. CitiMortgage Inc. |
2:11-cv-02318-ER |
04/01/11 |
www.mortgagedaily.com/LitigationMods062711.asp |
| PNC Bank, N.A. |
Robert B. Whittaker, III and Anna B. Whittaker |
United States District Court for the Eastern District of Virginia |
n/a |
A class action lawsuit was filed alleging that PNC Bank employed an arbitrary and blanket prohibition against subordinating second mortgages to new or modified senior mortgages secured by non-PNC liens. The complaint states claims under the Bank Holding Company Act’s anti-tying provisions. |
Whittaker et al. v. PNC Bank, N.A. |
1:10-cv-01090-AJT |
09/29/10 |
www.mortgagedaily.com/LitigationMods062711.asp |
| Saxon Mortgage Service, Inc. |
Marie Gaudin |
United States District Court for the Northern District of California |
n/a |
Plaintiffs in this HAMP class-action lawsuit allege that borrowers were lured into trial modifications even though the servicer had no intention of completing permanent modifications. |
Gaudin v. Saxon Mortgage Services, Inc. |
3:2011cv01663 |
04/06/11 |
www.mortgagedaily.com/LitigationMods062711.asp |
| SunTrust Mortgage Inc. and SunTrust Banks Inc. |
Lula Mae Renteria and Carol Jones |
United States District Court for the Southern District of California |
n/a |
A class action lawsuit was filed by borrowers who allege that the bank profited from a scheme in which it repeatedly and disingenuously promised mortgagors a permanent loan modification, while collecting payments from those mortgagors who relied on those promises along with excessive fees and costs. |
Renteria et al. v. SunTrust Mortgage, Inc. et al |
3:2011cv00602 |
03/25/11 |
www.mortgagedaily.com/LitigationMods062711.asp |
| Bank of America |
Borrowers who applied for modifications |
United States District Court for the District of Massachusetts |
n/a |
Class action of plaintiffs argue that Bank of America failed to comply with HAMP despite agreeing to do so in April 2009. The suit seeks, among other things, a permanent order requiring BOA to offer permanent modifications to those in the class that had received only temporary modifications. |
In re Bank of Am. HAMP Contract Litig. |
1:10-md-021930RWZ |
10/12/10 |
www.mortgagedaily.com/MctForeclosuresBoaNV052511.asp |
| Bank of America Corp. |
United States of America |
n/a |
n/a |
Complaint filed. Defendant allegedly hindered bank investigation. |
n/a |
n/a |
n/a |
www.mortgagedaily.com/LitigationMods062711.asp |
| Frank G. Debelius |
State of Maryland |
Hartford County Circuit Court in Maryland |
$8,500 |
Debelius was sentenced to 13 months in prison after pleading guilty of posing as a professional with Bay One Mortgage, allegedly collecting $8,500 from Clark and Cheryl Rorie in return for obtaining a $100,000 reduction in principal on their loan–though he did not and they lost their house. |
Maryland v. Frank G. Debelius |
n/a |
n/a |
www.mortgagedaily.com/LitigationCriminal061711.asp |
| Michael Trap and Glenn Steven Rosofsky |
United States |
United States District Court Southern District of California |
$460,249 |
Trap was given a 30-month sentence and ordered to pay $460,249 in restitution to victims of his loan modification scheme. Trap and his co-defendant, Steven Rosofsky admitted that they fraudulently induced more than 300 customers to pay between $2,500 and $3,000 for modification services through Nations Housing Modification Center and Federal Housing Modification Department. |
United States v. Michael Trapp and United States v. Glenn Steven Rosofsky |
3:10-cr-0978BEN and 3:10-cr-0972BEN |
n/a |
www.mortgagedaily.com/LitigationCriminal061711.asp |
| Alex P. Soria |
United States |
United States District Court for the District of Nevada |
$17,000 |
Defendant, a Las Vegas resident, was charged in April for allegedly collecting $17,000 from 15 distressed borrowers for whom he promised to obtain foreclosure relief or loan modifications, even though he wasn’t licensed to do so. |
United States v. Alex P. Soria |
2:11-CR-00156-LDG-RJJ |
04/20/11 |
www.mortgagedaily.com/LitigationForeclosureFirms063011.asp |
| Wells Fargo & Co. |
Karen Miller |
n/a |
n/a |
Karen Miller, along with seven other plaintiffs, have filed suit against Wells Fargo alleging that the bank told her not worry about foreclosure while she was in the modification approval process, however, the bank started a foreclosure anyway. |
n/a |
n/a |
n/a |
www.mortgagedaily.com/LitigationMods062711.asp |
