On April 30, 2015, the FTC announced that a Federal Court entered a preliminary injunction against a regional mortgage relief company over claims the company falsely represented to consumers that they could obtain mortgage modifications. The company allegedly represented that it was associated with various federally-approved mortgage relief programs, and could assist consumers who were having difficulty making their mortgage payments. According to the FTC, company employees sent mailings offering mortgage relief to consumers facing foreclosure. The mailings allegedly contained fraudulent government seals and promised modifications that the company could not provide. When consumers signed up for the program, company employees informed consumers that they would submit loan modification applications to the Department of Housing and Urban Development. According to the FTC’s complaint, which the FTC commission unanimously approved, company employees never submitted the applications, falsely informed consumers that the modification was approved, and began collecting mortgage payments from the consumers. As a result, some consumers faced increased fees and penalties and others lost their homes to foreclosure. The preliminary injunction prohibits the mortgage company and its principals from falsely representing that it can obtain mortgage modifications, collecting advanced fees before obtaining a modification, and freezes certain assets of the company.
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