State issues consumer alerts for two ‘loan mod’ firms

The Washington State Department of Financial Institutions (DFI) is again warning consumers to verify the license of any lending professional, especially those offering loan modification services.

DFI recently issued consumer alerts regarding the US Loan Assistance Center and Saint Judes Home Rescue LLC. Both companies reportedly offered to provide loan modification services to consumers for an up-front fee. In at least one reported case, after fees were paid, all contact with the consumer stopped.

Washington State law requires all individuals and companies providing third-party loan modification services to Washington residents be licensed by DFI. Additionally, the Federal Trade Commission’s Mortgage Assistance Relief Services (MARS) Rule prohibits entities from requiring upfront fees prior to performing loan modification services.

Any suspicious unlicensed activity by a mortgage broker or loan originator can be reported to DFI at 1-877-RING-DFI (746-4334), or online at www.dfi.wa.gov.