ANNAPOLIS, Md. (Legal Newsline) - Two mortgage loan procurement and credit consulting providers will pay $45,000 in restitution to settle a lawsuit with the state of Maryland that accused the companies of providing services without the proper license, Maryland Attorney General Brian Frosh said this week.
Baltimore Home Ownership Program and NowICanBuy along with the owner of the companies, Dwight Williams, reached the settlement agreement with Frosh's office on Monday. The lawsuit also accused the companies of collecting advanced fees and making false representations about its services and the success it has had with consumers, Frosh said.
"The process of buying a home can be overwhelming, but consumers shouldn't have to fear being victimized," Frosh said. "Our office and other state agencies, as well as reputable nonprofit organizations, offer resources to help Marylanders navigate the home-buying process."
Under the terms of the agreement, the companies will pay $45,000 in restitution to the consumers that paid for credit improvement or mortgage loan assistance services prior to May 5, 2014. A $230,000 civil penalty was also issued, but the penalty will be waived if the companies comply with the full terms of the settlement, Frosh said. Additionally, the companies will pay $5,000 in costs to the Attorney General's Office Consumer Protection Division.