HUD accuses California's mortgage modification service of discrimination

The California-based company, which was soliciting aid to distressed mortgage borrowers who engaged in discriminatory and illegal practices, alleged the Department of Housing and Urban Development in a press release released Friday.

Employees and owners of The House Lawyer in Redwood City, Calif., Have allegedly broken the law by improperly charging Hispanic borrowers for loan modification services and encouraging clients not to pay their mortgages, putting them at risk of foreclosure were exposed.

The complaint shows that HUD officials will focus equally on fair lending and fair service when the pandemic wears off and forbearance ends.

"Today's action reaffirms HUD's commitment to ensuring that families are not burdened with fraudulent mortgage products that, because of their nationality, endanger the ability to stay in their home," said Jeanine Worden, assistant secretary for fair living and equal opportunities, in a Press release.

THL is charged in HUD's complaint of violating state law and the Fair Housing Act in dealing with Hispanic borrowers through advertising on a Spanish-language radio station.

"THL agents have allegedly provided inaccurate information about application requirements, procedures, and standards for reviewing loan modification applications and misrepresented that their banks would be forced to revise their loans as long as homeowners withhold their mortgage payments and remain in default. " HUD said in its press release.

HUD plans to take its complaint to a U.S. administrative judge unless the parties involved choose to try it in federal court instead. You can seek injunctive relief, legal fees, and civil penalties.

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