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Lawyers Committee Backs CFPB Actions Against Fraudulent Foreclosure Rescue Firm

NationalMortgageProfessional.com
Aug 03, 2012

The Lawyers Committee for Civil Rights Under Law, as a leader of the Loan Modification Scam Prevention Network, has announced its support of the Consumer Financial Protection Bureau (CFPB) for its enforcement action against the Gordon Law Firm, et al. Though the foreclosure crisis began moer than four years ago, millions of homeowners continue to struggle and remain vulnerable to foreclosure rescue fraud. Through the efforts of homeowners, housing counselors, advocates and Network partners from across the country, the national Loan Modification Scam Database, managed by the Lawyers Committee, has collected more than 24,000 scam complaint reports since its launch in March 2010. These scam complaint reports allege that more than $59 million has been lost to foreclosure rescue fraud. The database currently contains no fewer than 60 complaint reports against the Gordon Law Firm. The Lawyers Committee estimates that the database represents only a small fraction of the harm caused to distressed homeowners by foreclosure rescue scams. “With so many pressing consumer protection issues within its purview, we are delighted that the CFPB’s first civil court case attacks foreclosure rescue fraud,” said Yolanda McGill, Fair Housing and Fair Lending senior counsel for the Lawyers Committee. “The Federal Trade Commission and dozens of other government agencies have been relentlessly pursuing these fraudsters, and the Lawyers’ Committee is also filing impact cases that shut down some of these schemes, but there remain individuals and organizations intent on stealing money from distressed homeowners. We welcome the addition of the CFPB’s enforcement actions and commend them for launching their docket with a foreclosure rescue scam case that highlights the increasing involvement of attorneys in these scams.” The information-sharing facilitated by the Network is crucial to rooting out shadowy operations that are stealing millions of dollars from distressed homeowners trying to save their homes from foreclosure. The broad coalition behind the Network includes dozens of local, state and federal agencies, including the CFPB, that all play a part in collecting the scam details from affected homeowners and using that information to educate the public, and to investigate and pursue civil and criminal actions against scammers. Distressed homeowners and concerned citizens who witness scam activity or think they have been scammed are encouraged to continue to report that information to the Network.  
Published
Aug 03, 2012
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