The Department of Housing and Urban Development has filed charges against three California-based home loan modification companies and nine of their employees for allegedly violating the Fair Housing Act.
HUD claims that the three companies — The Home Loan Auditors, Century Law Center and SOE Assistance Center — schemed to get Hispanic homeowners facing foreclosure to pay for home loan audits they never received and modification services that had little effect. The charges will be heard before a U.S. administrative law judge, unless any party in the case asks for it to be heard in a federal district court.
The three companies allegedly took advantage of homeowners' limited proficiency in English. HUD claims they used deceptive marketing practices in Spanish-language ads to mislead homeowners. The complainants in the case ultimately lost their homes to foreclosure.
"HUD will continue to take appropriate action against individuals and companies that victimize unsuspecting homeowners because of where they come from or the language they speak," HUD Assistant Secretary for Fair Housing and Equal Opportunity Gustavo Velasquez said in a Jan. 12 news release.
National Mortgage News was unable to reach the three companies involved in the case.
The administrative judge can award damages to the complainants if the case comes down in their favor. The judge could also provide other forms of relief to deter further discrimination or impose civil penalties. If heard in federal court, the judge can also award punitive damages.
