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Va., mortgage modification firms settle complaints

Wednesday - 3/6/2013, 7:07am  ET

RICHMOND, Va. -- Virginia has reached settlements with two affiliated mortgage loan modification companies accused of illegally charging advance fees to clients seeking foreclosure rescue services.

Attorney General Ken Cuccinelli announced the settlements with Virginia Beach-based Rysnglo (RISE'-en-glow) Financial Management and Los Angeles-based Mae Global Enterprises on Tuesday.

According to the attorney general's complaint, consumers' payments passed through Rysnglo to Mae Global, which was supposed to provide the services. The companies allegedly charged fees of up to $15,000 for loan modifications, which never came through.

The companies will make restitution of $248,200 and pay the state $110,000 in civil penalties, attorney fees and costs.

The settlement requires approval of a Virginia Beach Circuit Court judge.


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