Consumer Finance Insights
July 31, 2015

Co-Conspirators Plead Guilty in Connection with Mortgage Modification Scam

On July 29, the United States Attorney for the Southern District of New York announced that co-conspirators in a mortgage modification scam pled guilty to conspiracy and fraud.  The defendants, through a mortgage modification company, collected fees from residential mortgage holders and promised consumers that the company would either secure them a mortgage modification or return their fees.  The defendants also falsely represented that they were associated with the federal government’s Home Affordable Modification Program.  Most of the funds were diverted to the company’s employees rather than used for loan modification services.  The company provided little or no services to the consumers, and obtained at least $2.3 million from over 500 homeowners around the country.