Mortgage company to pay fine for illegal fees, Cuccinelli says
A mortgage modification company that had been illegally charging customers fees before providing emergency foreclosure help has agreed to refund customers and pay a $5,000 fine, Attorney Gen. Ken Cuccinelli (R) said.
In November, Cuccinelli filed suit against the American Neighborhood Housing Foundation, a Chesapeake-based company that also operated a Richmond office for three years, charging that the fees violated the Virginia Foreclosure Rescue and the Virginia Consumer Protection Act, by guaranteeing the company could halt foreclosures.
In a statement, Cuccinelli said the company has agreed to refund more than $94,000 to 273 customers nationally, as well as pay the fine and $10,000 to cover attorney fees. The company has also agreed to stop charging $1,500 in advance of providing foreclosure services and to stop guaranteeing that it can save people's homes.
"People are very vulnerable in this economy and are desperately seeking help, so it is especially important that we make sure those in the mortgage industry are playing by the rules and not playing on people's desperation," Cuccinelli said in a statement.
Rosalind S. Helderman
| December 20, 2010; 4:16 PM ET
Categories: Ken Cuccinelli
Save & Share: Previous: McDonnell tells FOX Business his proposal will help shore up state pension system
Next: McDonnell: Va. National Guard should follow 'don't ask, don't tell' repeal
Posted by: kayla1025 | December 20, 2010 4:55 PM | Report abuse
Posted by: I_can_see_DCfrommyhouse | December 20, 2010 11:53 PM | Report abuse
Posted by: alicehart123 | December 21, 2010 12:53 AM | Report abuse