SALEM, Ore. (Legal Newsline) - Oregon Attorney General John Kroger announced on Monday that his office has settled with two California loan modification companies accused of taking advantage of Oregonians.
Noah Savings Mortgage, Inc., was charged with collecting advance fees from Oregon residents for loan modifications to prevent foreclosure sales. Liberty Law Firm, Inc., also allegedly solicited the collection of advance fees for their loan modifications.
Under the terms of the settlement, both companies must pay restitution to Oregon consumers and are prohibited from pursuing any other loan modification work in the state.
Noah Savings Mortgage has agreed to pay $6,500 in full refunds to two Oregon consumers and $5,000 to the Oregon Department of Justice. Although the company admits to no wrongdoing, it has agreed to stop providing loan modifications in the state.
Liberty Law Firm, which also admits no wrongdoing, has agreed to cease modification work in Oregon.
Furthermore, if any Oregon consumer complaints are lodged before Aug. 20, the company will pay restitution to those victims and another $5,000 to the Department of Justice.