Two foreclosure relief companies have been ordered to cease and desist operations as a result of offering bogus loan modification assistance, primarily to Hispanic and Spanish-speaking homeowners.
The Mortgage Lending Division of the Nevada Department of Business and Industry issued the order to Majestic Group and Nevada Sky Premier, along with Jose Benjamin Rodriguez, to stop all advertising, offering and providing of any loan modification services to consumers.
Majestic, New Sky and Rodriguez were soliciting homeowners to participate in their "New Start Program," which they claimed would stop foreclosure or deliver a modification of their mortgage.
Little or no work was done on the homeowners’ behalf, and for some, foreclosure proceedings went forward despite their payments to the companies. The companies targeted a significant portion of their marketing to Hispanic homeowners who spoke Spanish.
Besides issuing the cease-and-desist order, the division imposed a fine of $50,000 and ordered that the companies make restitution to two consumers.
Contact reporter Hubble Smith at firstname.lastname@example.org or 702-383-0491.