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Attorney General Chris Koster Holds Florida Company Responsible in Mortgage Scam

According to Missouri Attorney General Chris Koster, he is filing suit against a Florida company that took money from distressed Missouri homeowners, but failed to provide and meaningful mortgage-modification service. Koster is joined by the Federal Trade Commission and the State of Iowa.

Since Koster began his campaign against mortgage fraud in April, this is the eighth lawsuit he has filed against a fraudulent mortgage business.

Koster said his office has “instituted a zero tolerance policy for any mortgage modification firm that preys on and cheats desperate homeowners.”

According to Koster, First Universal Lending, LLC, is based out of Palm Beach Gardens, Florida, but transacts business throughout Missouri. He says that the company markets itself as providing services for homeowners who are struggling to pay their mortgages or are faced with foreclosure and promising them lower house payments or interest rates. However, he said they appear to do little or nothing for the majority of its customers.

Additionally, he says, representatives from the company have told some clients to stop making payments on their mortgages while the modifications process was proceeding, which harms the customers’ credit rating and results in higher late fees, penalties, and interest payments and increases the likelihood of foreclosure.

Koster says that the business requires an up-front fee before providing services, which is illegal for mortgage modification companies according to Missouri law.

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