Earlier this summer, the Minnesota Department of Commerce (“the Department”) filed charges against a company that it says offered unlicensed mortgage adjustments to Minnesotans. Specifically, the Department, through its commissioner Mike Rothman, claimed that a Utah-based company known as CC Brown Law took approximately $134,000 in payments from Minnesotans without delivering the promised services. CC Brown may have also done business under other names, including Sentry Legal, WT Lee, and JL Martin.
This is not the first time that the Department has filed charges against a mortgage adjustment firm or loan modification company for failing to deliver the services promised to its clients, nor is this the first time that CC Brown Law may have been investigated by other states. The Utah Division of Real Estate allegedly took action against the loan modification firm in 2010, and the state of Maryland allegedly issued a cease and desist letter to CC Brown Law last year.
Federal law enforcement officials raided the Utah offices of CC Brown Law in June and an administrative hearing is expected this month. A finding that the company violated the law could result in financial fines. The amount of the potential fines, if the company is found to have violated the law, is currently unknown.
Minnesota Commerce Commissioner Rothman reminds consumers to be wary of loan modification firms that request advance fees or upfront payments, and encourages consumers to contact the Department if they feel that they have been victims of loan modification fraud. Victims may also contact a Minneapolis loan modification lawyer for help.