By MyBankTracker  Updated on Tue Dec 11, 2012

CFPB Halts Operation of Two Mortgage Loan Scams

 

The Consumer Financial Protection Bureau (CFPB) announced today it will halt the operations of two mortgage loan modification scams that have conned homeowners out of more than $10 million.

The organizations involved with the scams — the Gordon Law Firm and the National Legal Help Center — have been cheating thousands of homeowners under the pretense of offerring services to prevent foreclosures and negotiate failing mortgages.

The two operations have been claiming to be affiliated with the government in order to boost their credibility, in addition to charging large illegal fees from their customers.

“It is absolutely unacceptable for unscrupulous con artists to take advantage of our nation’s housing crisis by targeting homeowners looking for help from TARP’s Home Affordable Modification Program,” said Christy Romero, Special Inspector General for TARP, in prepared remarks.

U.S. District Court Judges in California have frozen the two operations’ assets in the meantime.

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