Attorney general vows mortgage fraud crackdown ( another Laughable LIE from the Feds
Attorney General Chris Koster stopped in Springfield on Thursday afternoon, alerting Missourians to mortgage scams while promising swift action against any offenders.
"When they step out of line, they will find the attorney general's office at the door," said Koster, who -- three months into his job -- is waging a "zero tolerance" campaign against mortgage scams across the state.
His office already has filed lawsuits against three companies -- Goldstar Home Mortgage of St. Joseph, Oxford Lending Group of Columbus, Ohio, and U.S. Foreclosure Relief out of California -- accusing them of making deceptive, misleading offers for services such as loan refinancing, credit repair and foreclosure relief.
More lawsuits are to follow, said Koster, noting unscrupulous businesses have sent out tens of thousands of solicitation letters to Missourians.
Their marketing efforts are targeting the vulnerable -- such as senior citizens and those facing foreclosures and financial hardship, he said.
Unlike scammers during the housing boom, the businesses now are exploiting low interest rates and the federal stimulus program that promises to help U.S. homeowners, Koster said.With its foreclosure rate on the rise since 2003, Greene County has seen scammers preying on those who are about to lose their homes, said Bob Horton, executive director of the Urban Neighborhoods Alliance in Springfield.
"We applaud (Koster's) office for doing something like this," Horton said.
At the Springfield press conference, Koster appeared with Doug Ommen, head of the consumer protection division, and showed the soliciting letters from Goldstar, Oxford and an unnamed company.
With bogus headings and official-sounding references to federal agencies and their programs, the letters are designed to look as if they were sent out by the federal government or a consumer's financial institute, Koster said.
Once they lure consumers, such companies prey by charging thousands of dollars in fees and offering little services, Koster said.
On Thursday, he said the priority is to halt misleading, deceptive advertisement."This type of deception should not happen in Missouri," Koster said.
To do so, Koster is asking Missourians to be skeptical of mortgage refinancing, foreclosure relief and credit repair offers and inform his office of such offers.
"Pack them up and send them to our office in Jefferson City," he said.Equipped with 15 lawyers and 25 investigators, his office will examine each deceptive tactic, Koster said.
His office will seek to stop such business conducts, Koster said.If the offenders continue their deceptive practices, Koster said, his office will seek more severe punishments, including shutting down the business and levying monetary penalties.
Crystal L. Cox
Real Estate Broker Owner
www.RealEstateIndustryWhistleblower.com
