HUD goes after defunct mortgage modification company

The U.S. Department of Housing and Urban Construction (HUD) charged a now-defunct California industry for allegedly focusing on Hispanic house owners with illegal and discriminatory mortgage modification companies.

HUD talked about that The Dwelling Attorney, primarily based mostly in Redwood Metropolis, California, nonetheless fees from Hispanic debtors for mortgage modification companies sooner than finishing the companies, a violation of California law, whereas “encouraging them to take hold of their mortgage payments, putting them vulnerable to foreclosure.” This constituted a violation of the Shapely Housing Act, the company talked about.

“For many households, homeownership represents the fruits of a dream, and the conclusion of that dream shouldn’t be build in jeopardy by unscrupulous actors and illegal practices,” Jeanine Worden, HUD’s Acting Assistant Secretary for Shapely Housing and Equal Opportunity, talked about in a press birth. “This day’s action reaffirms HUD’s commitment to making sure that no family is saddled with inaccurate mortgage products that threaten their skill to pause of their dwelling on legend of of their nationality.”

The case got here to HUD’s consideration in 2012 when multiple Hispanic house owners filed complaints with HUD alleging they’d been the victims of a mortgage modification rip-off, HUD talked about. The complaint alleges that the house owners heard concerning the mortgage modification service via adverts on a Spanish-language radio set, which claimed that The Dwelling Attorney helped a total bunch of folks successfully alter their mortgages.

When the house owners contacted The Dwelling Attorney, HUD claims its crew allegedly offered inaccurate statements concerning the “utility requirements, procedures and standards for overview for mortgage modification requests, and misrepresented that goodbye as the house owners withheld their mortgage payments and remained in default, their banks would be compelled to switch their mortgage.”

The complaint alleges THL charged charged client fees of roughly $3,500, which non-public been most ceaselessly paid earlier than they performed the work. As neatly as, they non-public been charged a habitual month-to-month fee of $50, HUD talked about. When doable possibilities didn’t qualify on legend of they non-public been most modern on their bills, HUD talked about THL informed them to shatter paying their mortgage.

The Dwelling Attorney looks to now be defunct. The complaint filed by HUD says Louis Liberty, a authorized legitimate in Foster Metropolis, Calif., owned the mortgage modification industry. Liberty’s exact estate license used to be revoked in 2015. He now specializes in suing automobile dealerships for alleged fraud.

The company moreover charged Barney Diamos, who allegedly used to be responsible of coaching and supervising crew, environment hours and rules for the corporate. He allegedly performed a serious feature in advertising and marketing and marketing and marketing THL’s companies to the Hispanic community. He moreover owned a staffing company referred to as Financial system Administration, which offered crew to THL. He and his brother Joe Diamos now escape a exact estate trend company in Northern California, referred to as Dream Staff True Estate Staff.

In the early days of President Joe Biden’s administration, regulators are focusing on alleged depraved actors. Late closing week, the User Finance Protection Bureau went after Nationwide Equities Company, a reverse mortgage company in New Jersey that allegedly despatched misguided mortgage ads to a total bunch of thousands of older debtors.

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