Federal Trade Commission settles charges with 16 companies charged with mortgage relief fraud

Gov’t settles loan-assistance fraud charges

WASHINGTON — Federal officials say they have reached settlements with several companies charged with falsely advertising to help troubled homeowners.

The Federal Trade Commission said Thursday that the settlements will ban the companies from the foreclosure relief business. A total of 16 companies and individuals were accused of hitting customers with hefty fees and making false promises.

The agency also filed an $11.4 million contempt order against Bryan D’Antonio, the operator of three of the companies. He was charged with not obeying a 2001 court order that stemmed from an earlier fraud scheme.

Many of the companies used names that led borrowers into believing they were participating in the Obama administration’s $75 billion mortgage modification effort, known as “Making Home Affordable.”

Among the companies settling charges were: Federal Loan Modification Law Center LLP, Apply2Save Inc., New Hope Modifications and Fedmortgageloans.com.

It also accused six people of creating websites that were designed to impersonate the Treasury Department’s official site for the mortgage modification program. Troubled borrowers trying to reach the government site instead ended up on private loan modification sites.