Foreclosure rescue and loan modification scams are among the most prevalent types of mortgage fraud, and this week, Virginia’s Attorney General has taken aim at two loan mod companies for violating the Virginia Foreclosure Rescue Law. According to WAVY television in Hampton Roads:
State Attorney General Ken Cuccinelli filed two separate lawsuits Monday against two Virginia Beach-based mortgage loan modification companies.
His office accused Nationwide Loan Modification Bureau and Real Estate Resolutions of charging illegal advance fees of up to $1,200 before performing “foreclosure rescue” services for their customers.
In the wake of the national housing crisis, Virginia has taken a more aggressive posture towards regulating mortgage lenders recently, including a requirement that all loan officers undergo a criminal background check before being licensed by the Commonwealth.