State warns homeowners of another ‘loan mod’ scam

The Washington State Department of Financial Institutions has issued a warning to consumers regarding another unlicensed loan modification operation promoted by a California law firm, Kramer & Kaslow, and a professional corporation called “Consolidated Litigation Group.”

In late 2010, these affiliated companies sent mailings to Washington consumers for loan modification services. In early 2011, the advertisements were for forensic loan audits (mortgage loan compliance review).

Fees for loan modification services were reported as $3,000 or more. The “mortgage loan compliance review” was quoted as $2,500, fully refundable if no violations are found.

Washington state law requires third-party loan modification companies to be licensed with the Department of Financial Institutions. To date, none of the companies affiliated with these advertisements are licensed with the department in any capacity.

For more information, contact the Department of Financial Institutions at 1.877.RING DFI (746-4334) or visit the department’s website.