Nevada Scam Loan Modification Agencies Fined by MLD

The Division of Mortgage Lending continues to diligently enforce mortgage lending laws by disciplining 10 entities for various violations of those laws.

* The Division fined now former mortgage agent Charmaine A. Hicks $2,500 plus administrative costs for failing to cooperate in a Division investigation.

* Henderson-based mortgage broker Evofi One was fined for sharing office space with unaffiliated businesses. The Division issued a fine of $5,000, plus administrative costs.

* Las Vegas-based The Sussex Group, an escrow agency, and its sole shareholder, Barry L. Fulco, were ordered to Cease & Desist operations after the Division discovered that the physical location listed on the application did not match the location provided to clients, after the business vacated a location without disclosing it to the Division, and after the Division was unable to subsequently find a permanent office location for the business. The Sussex Group was ordered to provide a full accounting of all transactions and moneys held in trust and was issued a $30,000 fine, plus administrative costs.

* Las Vegas-based mortgage broker Pinnacle Lending Group has entered into a Stipulated Settlement Agreement with the Division because the company improperly compensated its mortgage agents. This activity resulted in a fine of $10,000 (a portion of which was suspended) and administrative costs.

* Pea Management Group, Inc., dba Escrow Unlimited, entered into a Stipulated Settlement Agreement with the Division because the company did not maintain complete and suitable transaction records. Pea Management has been fined $3,500. The company has corrected the records deficiencies and has also agreed to increase its surety bond.

* The Division has fined Home Plus Financial, Inc., formerly licensed as a mortgage banker, a total of $5,000: $2,500 for failing to submit financial information and $2,500 failing to permit an examination.

* Cedar Mortgage Company, Inc., dba Cedar Mortgage, based in Fallon, Nevada, has entered into a Stipulated Settlement Agreement with the Division. Cedar Mortgage providedmortgage broker services out of an licensed California office. The company agreed to pay a fine of $2,500 and surrender its mortgage broker license.

* The Division has revoked Las Vegas-based OneCap Mortgage Corporation’s mortgage broker’s license because of its failure to abide by the terms of a previous settlement agreement.

* The Division has issued a Cease & Desist Order to Las Vegas-based Homekeepers RSVP, formerly dba Homekeepers, LLC, for performing unlicensed loan modification services. The company is prohibited from advertising for and/or soliciting foreclosure or loan modification consulting business and cannot provide these services to Nevada consumers. The company has also been fined $20,000 and must pay the Division’s investigative costs.

* After investigating numerous complaints, the Division has issued a Cease & Desist Order to Las Vegas Paralegal Services and Maria D. Davila for providing foreclosure and loan modification consulting services without a license from the Division. Ms. Davila and Las Vegas Paralegal Services are prohibited from advertising for and/or soliciting foreclosure or loan modification consulting business and cannot provide these services to Nevada consumers. They have each been fined $10,000 and are required to pay the Division’s investigative costs as well as any attorney’s fees the Division may incur.

“Today’s announcement once again highlights our continuing commitment to protecting Nevada consumers,” said Mortgage Lending Commissioner Joe Waltuch. “Those allowing or participating in inappropriate mortgage-related activity will be held accountable.”

For more information about the Division of Mortgage Lending, visit

How to prepare financial information before you talk to your lender?


Employment $ $ $ $
Overtime ______________________________________________________
Child Support/Alimony ___________________________________________
Pension _______________________________________________________
Interest _______________________________________________________
Public Benefits _________________________________________________ ______________________________________________________________
Trust Payments ________________________________________________
Royalties ______________________________________________________
Rents Received _________________________________________________
Other (List) ____________________________________________________




Payroll Deductions $ $ $ $
Income Tax Withheld ____________________________________
Social Security _________________________________________
Wage Garnishments ____________________________________ Credit Union _______________________________________
Other ________________________________________________
Home Related Expenses
Mortgage or Rent ______________________________________
Second Mortgage ______________________________________
Third Mortgage ________________________________________
Real Estate Taxes ______________________________________
Insurance _____________________________________________
Condo Fees & Assessments ______________________________
Mobile Home Lot Rent ___________________________________
Home Maintenance/ Upkeep ______________________________
Utilities _______________________________________________
Gas __________________________________________________
Electric ___________________
Oil _______________________
Water/Sewer ____________________
Land Line _______________________
Cell ____________________________
Cable TV ________________________
Other __________________________
Eating Out ______________________
Groceries _______________________
Clothing ________________________________
Laundry and Cleaning _____________________
Medical ________________________________
Current Needs _______________________
Prescriptions _______________________
Dental _______________________
Insurance Co-Payments or Premiums
Other _________________________________
Transportation _________________________
Auto Payments ________________________
Car Insurance ________________________
Gas and Maintenance _________________________
Public Transportation _______________________
Life Insurance _________________________
Alimony or Support Paid _________________________
School Expenses _________________________
Student Loan Payments _________________________
Entertainment _________________________
Newspapers/Magazines _________________________
Charity/Church _________________________
Pet Expenses _________________________
Amounts Owed on Debts _________________________
Credit Card__________________________________
Credit Card
Credit Card
Medical Bill
Medical Bill
Other Back Bills (List)
Cosigned Debts
Business Debts (List)
Other Expenses (List)
TOTAL _______________________________________________________

Other Important Debt Issues:

Wage Garnishments Yes______ No______
Pending Court Cases Yes______ No______
Pending Utility Shut-offs Yes _____ No _____
Car Loan Defaults or Repossessions Tax Debts Yes ____ No____
Student Loan Debts Yes_____ No_____

Notes/Anticipated Changes:
Describe Assets and Other Resources:

Savings Yes______ No______ Amount $__________________

Court Cases Pending Against Others Yes______ No__________
Value $______________

Anticipated Tax Refunds Yes______ No____________
Amount $______________

Assets Which Can Be Sold Yes ______ No______ Value $______________

Pension or Retirement Funds Yes______ No______ Value $______________

Other Assets and Notes:


Last Mo. Actual This Mo. Expected This Mo. Actual Adjusted Expected
A. Total Projected Monthly Income
B. Total Projected Monthly Expenses
Excess Income or Shortfall (A minus B)



1. Have you made an effort to arrange a workout on their own? What result?

2. Have you filed bankruptcy? If so when? Current status of case if still pending? If bankruptcy is over, what result?

3. Other issues which came up during this time.

4. Questions and open issues that must be resolved

Strategic Defaults or Walkaways–New Threats to Homeownership

We are hearing new and new words again and our real estate terminology is becoming richer every day. Until only couple years ago, we did not even know what is a short sale or deed in lieu. Now, a new word is becoming familiar every day and it is called strategic default. A strategic default is the decision by a borrower to stop making payments (i.e. default) on a debt despite having the financial ability to make the payments.
This is particularly associated with residential and commercial mortgages, in which case it usually occurs after a substantial drop in the house’s price such that the debt owed is (considerably) greater than the value of the property — the property negative equity or “underwater” — and is expected to remain so for the foreseeable future, such as following the bursting of a real estate bubble. Such borrowers are called “walkaways”.
Even distinguished economists Paul Krugman and Hal Varian have acknowledged that strategic default will be an inevitable result of the collapse of the finance and property bubble of the era following 2006. They also note that this is one of the few ways of freeing people from the burden of mortgage debt
The walkaways are the people who find themselves unable to meet their mortgage payments—and to solve the problem simply move out their belongings at night, drop their house key in the mailbox and disappear. In West Texas, largely because of walkaways, the Federal Government currently has 1,800 repossessed houses on its hands. In seven South Florida counties, walkaways have abandoned 3,000 FHA-homes. The rate of mortgage foreclosures has tripled during the past ten years, to an estimated 3.77 per 1,000 mortgages. Most housing economists agree that the leveling off of home prices in many parts of the U.S. accounts for most of the increase. As long as home prices were rising, a homeowner who could not meet his payments could always sell out—usually at a profit. Now, with prices steady, an overextended homeowner must either sell at a loss or face foreclosure.
WAlkAWAYS are done by homeowners who are financially savvy and had calculated that there is no outcome or light at the end of the tunnel. A strategic default is done by smart and educated people compared to Walkaways who are financially not that savvy and no solid jobs and can move easily. While strategic defaulters calculate and savvy and knows the financial market well. They have good income jobs and mostly both the spouses are working in middle income bracket.
Again, this walkaways and strategic default is a dangerous phenomenon and would nullify all the efforts by federal government in solving this home foreclosure crisis. If it continues, there would be no end in sight and it would engulf all of us. Our situation would not be different than say from Greece or Portugal.

Foreclosures Are Coming Down-Finally something better to read!

The good news is that foreclosure rate is coming down. It is happening all across USA. Nevada is a bit slow to catch up. However, things are improving in Nevada as well. Please read the following article.

Lawsuit Filed Against Wells Fargo For Not Doing Permanent Loan Modification

As we know banks had done temporary loan modification and promised permanent loan modifications if the borrowers at least make three payments and their financial conditions are not substantially changed. Many lenders had done temporary loan modification but somehow were reluctact to do permanent loan modification. Here, we have a copy of the complaint where Wells Fargo and Bank of America were sued.

What About 2nd Mortgages?

JPMorgan Chase this week became the latest big bank to say it is willing to modify second mortgages for some struggling borrowers. It can be termed as baby step as we had seen a continuous neglect by lenders to modify second mortgages. They had frowned upon this idea for long time. As we know, most of the homes in Nevada has a second loan which are called junior liens in legal language and they are subordinate to the first loan.

Most of the homeowners who are behind on their first mortgage payments are also behind on their second mortgage payments. All the modification programs by federal government only has tackled first mortgages . The Home Affordable Modification Program, which is intended to ease mortgage payment reductions, is aimed at several million struggling borrowers. Of 1.4 million trial modifications offered so far, only 170,000 have resulted in adjustments that the program calls “permanent.” In reality, even after modification many borrowers are still overburdened, and further defaults look inevitable.

That ought to focus banks’ attention on their second-lien loans. There may be little or no chance many of them will ever be repaid. But banks have avoided writing down second liens because accounting rules allow them to consider the loans performing so long as borrowers make interest payments. It’s easy to understand why the banks are avoiding the issue. According to Amherst Securities, of $1.05 trillion in outstanding second liens, commercial banks hold $767 billion. Bank of America, Citigroup, JPMorgan Chase and Wells Fargo alone hold $442 billion of them.
A government modification program for second liens, known as 2MP, was first put forward a year ago. But Bank of America, Wells Fargo and now JPMorgan Chase have only recently joined. It is not likely to reach many borrowers since it focuses on only those few who do “permanent” modifications under the federally sponsored program. Assuming around half of distressed homeowners have second mortgages, this would cover some 85,000 second liens, of the millions that are outstanding.

What Are Predatory Lending Practices?

There are many types of predatory lending practice. However, the following are most common:

1. Flipping: It is a process in which a creditor encourages a consumer to refinance a loan several times in a relatively short period of time, each time adding higher points and fees.

2. Packing. It involves adding fees to a new loan for services such as credit insurance or adding the borrower’s old debt into the new loan. this tactic gets its name from the fact that lenders “pack” old debt into new loans, which can make it more difficult for borrowers to repay them.

3. Stripping. It refers to the practice of basing the terms of a loan on a borrower’s equity in his or her home, rather than on the borrower’s ability to repay the debt. Eventually, foreclosure and sale of the property occurs, and the money derived from the equity is stripped from the homeowners and goes to the creditor in repayment.

4. Also, a predatory lending includes when home improvement contractors go door-to-door, seeking to induce people to take out mortgages to pay for home improvements. Most of the times, the consumers can be unaware of the facts that they were subjected to predatory lending