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Attorney general cracks down on home loan scam artists
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Attorney general cracks down on home loan scam artists
California Attorney General Jerry Brown today announced a crackdown on home loan modification scams. KPCC’s Shirley Jahad has more.
Shirley Jahad: Hundreds and perhaps thousands of companies have been springing up around Southern California making big promises to help people get better terms on the home loans. An untold number of them are scam artists. They take people’s money up front, and then fail to deliver anything. A lot of them aren’t licensed or registered with the state.
Attorney General Jerry Brown says he’s trying to weed out the bad guys by calling for accountability
Jerry Brown: I've sent letters to 386 of these unlicensed operators and told them: register with the state and post $100,000 bond or get sued. Maybe even criminally.
Jahad: Brown says the problem is ballooning. Two years ago, there were about two dozen complaints filed to his office against loan modification companies. So far this year, there are nearly 900.
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