WHO: NACA RETURNS $ TO HOMEOWNERS ACROSS THE COUNTRY
WHAT: RECEIVE FINANCIAL RELIEF
WHEN: THURSDAY, JULY 11TH AT 10:30 a.m.
WHERE: NACA OFFICE, 11633 SOUTH HAWTHORNE BLVD SUITE 100, HAWTHORNE, CA
NACA ANNOUNCES UNPRECEDENTED VICTORY OVER LOAN MODIFICATION SCAM COMPANY – VICTIMS TO GET ALL THEIR MONEY BACK
(July 11, 2013 – Los Angeles, CA) — On Thursday July 11, 2013 at NACA’s Los Angeles office (11633 South Hawthorne Blvd, Suite 100, Hawthorne, CA), NACA’s Founder and CEO Bruce Marks will distribute funds recovered in a lawsuit to victims of a mortgage modification scam that affected hundreds of homeowners nationwide. Many live in Southern California, and one of them lives in the Arizona town where recent wildfires occurred. Manfred and Joanna Walker said they’re grateful because they believe their home has now been saved twice. Once, through NACA for recovering the money lost in a scam, and second time by the firefighters who were able to protect their home from the wildfires. The Walkers say, although they need the money NACA will present to them, they plan on donating it to the victims of the wildfires in their town. The Walkers are available for interviews from Arizona.
NACA, the nation’s largest non-profit HUD certified home ownership organization, successfully sued First One Lending Corporation, a fraudulent loan modification company based in southern California, that charged homeowners up to and over $2,500 with false claims it could save peoples’ homes.
This is an unprecedented victory where for the first time the homeowners victimized by a loan modification scam will recover 100 cents on the dollar for all the money they paid. NACA, which provides all of its foreclosure prevention services for free, used the Lanham Act, the federal unfair competition statute, to put First One out of business and make the homeowners whole.
This victory sets the benchmark for government regulators and prosecutors to take action against those who have profited from the foreclosure crisis. “NACA has shown that it is possible and necessary to both put these predators out of business and compensate the homeowners for every penny they have paid these predators,” Marks continued. “No one should ever have to pay to try and save their home. It’s a disgrace that companies like First One engages in such deceitful practices, preying on people desperate to save their homes.”
NACA discovered First One had charged desperate homeowners for foreclosure prevention services they never received. Often times, the company would refer its clients to NACA’s free Home Save Program after First One took its unconscionable fee. NACA sued the company and is now presenting each homeowner referred to NACA with a check for the full amount of money First One took from them.
Several homeowners ripped off in the scam didn’t think they would ever recover their hard earned dollars, and several Los Angeles area victims will tell their story during the ceremony. “I realize now that First One deceived me into believing it was affiliated with NACA so that I would pay First One $1,850, believing First One would obtain a loan modification for me. Although I eventually learned First One is not affiliated with NACA, I learned it too late. I believe that First One should be stopped from deceiving others like it deceived me,” said Mark Arvizu of Chatsworth, CA.
The announcement Thursday at 10:30 a.m. at 11633 South Hawthorne Blvd, Suite 100, Hawthorne, CA, will demonstrate that a non-profit homeownership and advocacy organization can set a higher standard by closing down scam companies and making victims whole despite its more limited authority and resources than government entities with their far greater prosecutorial powers. NACA hopes these actions will set a precedent and result in more aggressive actions by the federal regulators including the Consumer Financial Protection Bureau, Federal Trade Commission and state attorneys general.
NACA, the Neighborhood Assistance Corporation of America, is the nation’s largest HUD certified counseling agency, providing about 30% of the housing counseling in the country, and has more than two million members. NACA is the largest and most effective organization in modifying mortgages and also provides the best mortgage product in the country. NACA has been highlighted in the national news and its CEO, Bruce Marks, was named Bostonian of the Year for 2007 because of his work in getting the major lenders and servicers to modify home loans for borrowers who come through NACA. He has also testified in congress on numerous occasions including on September 12, 2000, being one of the only people to sound the alarm of the pending mortgage crisis. For more information go to www.naca.com