State identifies companies authorized to modify loans

By Las Vegas Sun Staff (contact)

Tuesday, Nov. 3, 2009 | 4:18 p.m.

The Nevada Division of Mortgage Lending today released a list of 28 companies authorized to work with consumers in modifying home loans.

On Monday, the agency said it was canceling the authorization to work for about 30 loan modification companies that failed to obtain a minimum $75,000 surety bond.

In addition to passing FBI and other background checks, a credit check, and meeting specific educational requirements, the state requires loan modification providers to post the bonds. The bonds are a provision to protect consumers who may be harmed by loan modification providers.

Homeowners may view a list of companies that remain authorized to provide loan modification and other covered services, via a link on the home page of the Mortgage Lending Division’s Web site. The list will be updated as needed to add or delete the names of those companies, the agency said.

Companies whose authorization to conduct loan modification and other covered services has been canceled have 10 days to close down and cancel their contracts with homeowners. They must also make refunds as provided for in their contracts or transfer the homeowners’ contracts and funds to approved companies or counselors.

"We will not allow those companies who have not met their legal obligations to operate," agency Commissioner Joseph Waltuch said in a statement. "If consumers are going to pay for loan modification assistance, they must be able to trust that there’s recourse if they’ve been harmed in some way."

Waltuch advised homeowners who have been working through such companies that they may need to contact their lenders and revoke any authorizations given to the lenders to discuss their loans with such companies.

For more information about the Division of Mortgage Lending, visit mld.nv.gov/index.htm.