State bars 3 from mortgage modifications
The owners of a North Idaho mortgage modification company are prohibited from engaging in loan modification activities with Idaho consumers, Attorney General Lawrence Wasden said today. Randy Allen, Clint Paulsen, and Travis Smith, who operated HomeModifier in Post Falls, signed a consent judgment that prevents them from opening a new mortgage modification business in Idaho.
HomeModifer and its owners also agreed to pay $7,000 in restitution to reimburse the six consumers who complained to Wasden’s office. The owners also paid $1,000 of the state’s attorney fees and costs. A civil penalty of $30,000 is 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,” said Wasden. “Preventing the continuance and proliferation of alleged mortgage modification scams in Idaho remains a high priority in these difficult financial times.”
The three individuals who operated HomeModifer owned APS Northwest Idaho, LLC. The Attorney General’s Office received complaints from six consumers, including four Idahoans, who paid HomeModifier for modification assistance that they allegedly never received.
Although HomeModifier negotiated a few modifications for its clients, it did so without proper licensing through the Idaho Department of Finance. And, like many modification operations, it soon found itself in financial distress.
“While I understand that these three men never meant to injure consumers, this case serves as a warning to all modification companies,” Wasden said.
Under the terms of the settlement, none of the parties admitted any liability or wrongdoing.
The Attorney General publishes two handbooks for consumers looking for information about home buying, mortgages, foreclosures, and federal loan modification programs. The handbooks are available free at www.ag.idaho.gov or by calling 208-334-2424 or 800-342-4535 in Idaho.