Noah Savings Mortgage and Liberty Law Firm have had settlement agreements drawn up that will provide refunds to Oregon homeowners and prohibit them from doing further loan modification work in Oregon.
The Oregon Department of Justice investigated allegations that Noah Savings Mortgage violated state law by collecting advance fees for loan modifications aimed at preventing foreclosure sales. The investigation also looked at allegations that Liberty Law Firm solicited to collect advance fees for loan modifications. Both companies cooperated with the investigation.
The settlement with Noah Savings Mortgage resulted in $6,500 in full refunds to two Oregon consumers. The company also must pay $5,000 to the Oregon Department of Justice and cease doing loan modification work in Oregon. The settlement, in which Noah Savings Mortgage admits no wrongdoing, was filed in Linn County, Oregon.
The settlement with Liberty Law Firm prohibits the company from doing modification work in Oregon. If any Oregon consumer complaints arise before August 20, 2010, Liberty Law Firm must pay restitution to those victims and $5,000 to the Department of Justice. Liberty Law Firm admits no wrongdoing; the settlement was filed in Marion County, Oregon.
Oregon Attorney General John Kroger made the announcement.
“This office is committed to stopping abuses in the mortgage industry that harm Oregon consumers,” said Deputy Attorney General Mary Williams.
Senior Assistant Attorney General Thomas K. Elden handled the case for the Oregon Department of Justice.
Oregonians should watch out for loan modifiers who ask for advance fees over $50 and check to see if a loan modifier is registered. Foreclosure consultants and loan modifiers cannot take advance fees in Oregon. Loan modifiers must register with the Oregon Department of Consumer and Business Services through the Division of Finance and Corporate Securities.
The Oregon Department of Justice and the Department of Consumer and Business Services work together to uproot abuses in loan modification.