Idaho AG bars three from mortgage modification business
BOISE, Idaho (Legal Newsline) - Idaho Attorney General Lawrence Wasden announced on Wednesday that the owners of a mortgage modification company have been prohibited from engaging in loan modifications in the state.
HomeModifier, located in Post Falls, Idaho, and owners Randy Allen, Clint Paulsen, and Travis Smith, agreed to a consent judgment preventing them from opening a new mortgage modification business in Idaho because of alleged dishonest practices. They also agreed to pay $8,000 in restitution and court costs.
HomeModifier allegedly collected money from six consumers for modification assistance but never provided any services. The company allegedly negotiated a few modifications for its clients, but did not have proper Idaho Department of Finance certification. The three men also owned APS Northwest Idaho, LLC.
"While I understand that these three men never meant to injure consumers, this case serves as a warning to all modification companies," Wasden said.
Although none of the parties admitted any liability or wrongdoing, the defendants will pay $7,000 in restitution to reimburse the six consumers and pay another $1,000 in costs associated with the case. A civil penalty of $30,000 will be held in abeyance pending each of the owner's compliance with the settlement agreement.
"While this settlement benefits the consumers who filed complaints about HomeModifier, it also protects all of Idaho's consumers," Wasden said. "Preventing the continuance and proliferation of alleged mortgage modification scams in Idaho remains a high priority in these difficult financial times."