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Colorado AG takes action against companies preying on borrowers

NationalMortgageProfessional.com
Jun 21, 2010

Colorado Attorney General John Suthers has announced that his office has taken action against three firms engaged in fraudulent business practices in Colorado as part of his office’s efforts to crack down on mortgage and foreclosure fraud. “The problem of mortgage brokers falsifying consumers’ earnings or wrongly vouching for their abilities to pay back steep loans has undoubtedly contributed to Colorado’s foreclosure crisis,” Suthers said. “Loan modification and foreclosure rescue firms also have only exacerbated Colorado’s foreclosure crisis. These firms, like fraudulent mortgage brokers, prey on consumers’ hopes of owning their homes. The cases we are announcing today, as part of a nationwide mortgage-fraud sweep, underline our commitment to vigorously pursing the bad actors in Colorado’s mortgage and foreclosure marketplace.” Since the last sweep in November, the Office of the Attorney General has taken legal actions against: ►American Mortgage Consultants, an Aurora, Colo.-based loan modification company, and its owner, Oliver Paul Maldonado, and its principal employee, Santiago Fabian Pineda. American Mortgage Consultants is suspected of using deceptive trade practices to attract consumers to its loan modification business. The firm also is suspected of collecting upfront fees from consumers for loan-modification services, which is illegal. The Office of the Attorney General also has reached assurances of voluntary compliance with: ►An T. Nguyen, vice president of Home Mortgage Solutions Inc., a Greenwood Village, Colo.-based company; and, ►Leonard D. Smith, a branch manager with Home Mortgage Solutions Inc., a Greenwood Village, Colo.-based company. Both Smith and Nguyen are required, under the assurances, to make proper disclosure to their clients concerning home loans and to make full disclose of the terms and interest rates in any advertisement about mortgage products. The Office of the Attorney General’s actions come as part of “Operation Stolen Dreams,” a multistate sweep announced by the U.S. Department of Justice (DOJ) and Federal Trade Commission (FTC). The sweep covers nine states and announces 101 actions taken against loan modification firms. Colorado has been on the top states affected by the foreclosure crisis in 2006, 2007, 2008 and 2009. Suthers encouraged consumers facing foreclosure to contact the Colorado Foreclosure Hotline at 1-877-601-HOPE (4673). The hotline is staffed with U.S. Department of Housing & Urban Development (HUD)-approved non-profit housing counselors who can talk with them about their mortgage.  For more information, visit www.coloradoattorneygeneral.gov/complaint.  
Published
Jun 21, 2010
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