Ten companies targeted as part of a nationwide crackdown on loan-modification scams have agreed to pay restitution and comply with Colorado law or not do business in the state.
The loan-modification firms either failed to deliver results to consumers or engaged in deceptive practices, Colorado Attorney General John Suthers said Tuesday. Nine of the companies are based out of state.
The violations included charging an upfront fee for a loan modification, which is illegal in Colorado, said Mike Saccone, a spokesman for Suthers.
“One company used a misleading customer testimonial when in fact that customer was one of the people who had not had any results come of their engagement with the company,” Saccone said.
The companies have agreed to pay back money collected from Colorado consumers who were duped, Saccone said. He wouldn’t disclose how much is expected to be repaid.
The companies are:
• Abbotsford, doing business as and United Financial Services Group.
• Airan2, Airan-Pace, Crose & Fernandez PA.
• American Summit Financial Services and owner Peter Johnson.
• Best Interest Rate Mortgage Co. and owner Michael DiPlacido.
• Financial Solutions Law Group, doing business as Financial Solutions, and Echo Loans and owner Kelly David Christensen.
• Hope 4 Homeowners America and owner Cheryl Barnett.
• Key Mortgage.
• Gabee, doing business as Modification HUB.
• Modify Loans.
• Pier West Capital, doing business as Loan Modification Solutions.
“These companies preyed on Colorado consumers who were looking for help trying to find a way out of foreclosure or those close to going under,” Suthers said.
The Obama administration set up the loan- modification program to allow struggling home owners to reduce their monthly payments, often through a lower interest rate or longer loan terms.
The nationwide crackdown on mortgage-relief fraud has resulted in 118 actions by 26 federal and state agencies, including the 10 taken by Suthers. His office has taken action against 17 loan-modification firms this year.
Andy Vuong: 303-954-1209 or avuong@denverpost.com
