Division of Mortgage Lending Fines Foreclosure Consultant and Obtains Refund for Injured Homeowners

The Nevada Division of Mortgage Lending has reached a settlement with a Reno business engaged in foreclosure consultant services over allegations that its conduct violated the State’s Foreclosure Consultant statute.

The Division has fined IMortgage Lending Services, LLC, for violations of NRS 645F.400, which prohibits charging struggling homeowners up-front fees before providing foreclosure services. 

“It violates the law for foreclosure consultants to get paid before they perform their services,” says Mortgage Lending Commissioner Joseph Waltuch.  “We are committed to taking action against companies that do this.”

IMortgage Lending Services, LLC, has fully complied with the settlement agreement, including refunding $7600 in fees to two homeowners who had paid money before receiving services.

Waltuch adds, “We hope that more companies will cooperate as IMortgage did by ceasing these improper activities and making appropriate refunds to the affected consumers.”

The Division reminds homeowners never to pay money in advance to a ‘foreclosure consultant’. Commissioner Waltuch also suggests that homeowners not pay money in advance to ‘loan modification specialists’, companies that promise to modify or negotiate terms of existing mortgages where the homeowner is struggling financially but has not yet entered the foreclosure process.

 “Loan modification help is available for free, directly from your lender or from a HUD-approved housing counselor,” says Commissioner Waltuch.

For a list of qualified housing counselors, visit http://foreclosurehelp.nv.gov/HousingCounselors.html.  If you think you have been victimized by a foreclosure consultant or loan modification company, act now.  File a complaint with the Division of Mortgage Lending at http://mld.nv.gov/Forms.htm#complaint_forms. 

Financial Institutions Division Supports America Saves Week

The Nevada Financial Institutions Division (FID), in observance of America Saves Week from February 22 to March 2, 2009, is encouraging Nevadans to discover how they can save, invest and safeguard their assets.

America Saves is a nationwide campaign supported by a variety of nonprofit, corporate and government groups.  The goal of America Saves Week is to motivate consumers to save, invest and build wealth.  To learn how to do that, FID encourages Nevadans to attend one of the many financial education classes offered to consumers throughout the State.  Classes are usually free of charge and cover such topics as general financial literacy, homebuyer education, fresh-start checking, and bankruptcy education.  For a list of classes, visit http://foreclosurehelp.nv.gov/Classes.html. 

Consumer Affairs Division Offers Fraud Prevention Tips During America Saves Week

In recognition of America Saves Week, from February 22 to March 1, 2009, the Nevada Consumer Affairs Division is encouraging Nevadans to protect their savings through fraud prevention.

The goal of America Saves Week is to motivate consumers to save, invest and build wealth. Consumer Affairs reminds Nevadans that wealth also comes from protecting your investments by avoiding fraud.

 “Especially in this economic climate, investors of all ages and income levels can – and should – learn how to safeguard their savings from scammers,” said Sharon Jackson, Consumer Affairs Interim Commissioner.

Consumer Affairs offers the following tips to investors to protect themselves from fraud:

·        Investigate before you invest. Get all the documentation, and make sure you read the fine print.

·        Take your time. Don’t succumb to high-pressure sales and marketing tactics.

·        Do not pay cash or wire money for an investment.

·        If it sounds too good to be true, it probably is.

·        Research the licensing and background of anyone offering investments by contacting the Consumer Affairs at http://fyiconsumer.org, the Financial Institutions Division at http://fid.state.nv.us/, and the Nevada Secretary of State Securities Division at http://sos.state.nv.us/securities/general/info.asp. 

·        If you’ve been a victim of fraud, contact Consumer Affairs online at http://fyiconsumer.org or by phone at (702) 486-7355 in Las Vegas or (775) 688-1800 in Carson City.

 “Call us BEFORE you turn over your hard-earned cash,” said Interim Commissioner Jackson. “No matter how much you’ve saved, even if it’s a small amount, you could still be targeted by con artists. Education is the best way to keep your savings secure.”

Consumers are also encouraged to visit the Fight Fraud Website at http://fightfraud.nv.gov/.  The site includes extensive tips on how to prevent fraud and provides downloadable complaint forms to help you respond effectively if you become a victim.  Visit it regularly for the latest fraud alerts.