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Mortgage loan modification settlements

Published On: Mar 06 2013 06:35:46 AM CST
Updated On: Mar 06 2013 12:35:11 PM CST

The Commonwealth has reached settlements with two mortgage loan modification companies, accused of illegally charging advance fees to clients seeking foreclosure rescue services.

Attorney General Ken Cuccinelli says consumers' payments passed through Rysnglo and Mae Global Financial Management, which were supposed to provide those services.

Cuccinelli says the companies allegedly charged fees of up to $15,000 for loan modifications, which never happened.

The companies will make restitution of $248,000 and pay the state $110,000 in civil penalties, attorney fees and costs.

That settlement must still be approved by a judge.