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Despite everything, sub-prime brokers are again emerging but this time as saviours and friends of foreclosure victims.
During the time of boom Jack Soussana arranged for a sizeable number of mortgages and went on to amass a huge fortune. Soussana himself admits that most of his customers have not done well and are now battling to save their homes. But the dangers now closing in on his clients have opened up new opportunities to make more money for Soussana.
In 2008 he and his colleagues sitting in the same office premises kicked off a loan modification firm. He charges $3,495 as initial fees for trying to modify the loans by opening talks with the lender for lowering of payments on the same mortgages that he and his group had sprinkled all across South California.
Sousanna operates the Los Angeles sales office named Federal Loan Modification Law Center. Speaking about the change he said, “We just changed the script and changed the product we were selling. Now, we’re able to help you out because we understand your lender.”
Soussana is also partner of FedMod that deals with high risk lending tools. The manager, Nabile Anz is nicknamed Bill. He once sold $30 million worth of sub-prime and other risky loans each month. Another partner of FedMod named Jeffrey Broughton dealt with dangerous Alt-A mortgages working in conjunction with the now defamed Countrywide.
There are many of the type of FedMod who distributed risky loans during the time of the housing boom but despite the ignominy of the fall they have regrouped, changed their feathers and come back to business making gains out this very collapse they have architected. They are today among the leading scammers.
The fraudsters, expert at the game, make tall promises to borrowers who are cornered and scrambling to keep the houses that are their homes. But all activity ends with the promises and the taking of fees. The New York Times conducted an investigation involving many former employees and clients. Over 650 complaints have been filed with Better Business Bureau as well as the Federal Trade Commission. Legal suits too have been initiated.
One suit filed in the federal court of California alleges that FedMod repeatedly inflated its success rate and asked the help seekers to stop making mortgage payments. Nothing was done to bring about a loan workout. No fees were refunded. The suit targets putting an end to the business of FedMod and seeking compensation for its victims.
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5 Responses
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