Friday, Jan. 28, 2011 | 2:58 p.m.
CARSON CITY – The state is seeking to levy a $50,000 fine against a Las Vegas couple in the foreclosure and loan modification business, accusing them of mishandling their clients’ money.
The state Division of Mortgage Lending has filed a complaint to revoke the license of Jeff and Gail Strum, operators of US Loan Modification Services, 2461 Professional Court.
The Strums can request a hearing within 20 days to challenge the allegations. They were licensed by the state in January last year as foreclosure and loan modification consultants.
Such consultants promise to help a consumer avoid home foreclosure or aid in getting a loan modified. Under a 2009 law, the consultants are allowed to collect their fees up front and install them in a trust account. They were authorized to take the money out as they performed the service.
An examination of the business found the money the Strums collected wasn't placed in a trust fund in a licensed bank or credit union as required by law. They also failed to keep records for each homeowner.
The couple is accused of co-mingling these funds and using the money for their personal affairs without an explanation of how it was spent.
The Strums had a previous appeal session before a hearing officer, who issued a cease and desist order and directed them to hire a certified public accountant to reconcile the books and records. They failed to comply with that order, according to the complaint by the state.
The complaint said the couple also failed to deposit sufficient money into a trust account to cure any shortfall as a result of the CPA examination.
In addition to the $50,000 fine, the division also wants the couple to pay $4,920 to cover the cost of the examination.
Division Commissioner Joseph Waltuch said the Federal Trade Commission has issued a rule that prohibits consultants and companies from collecting the fee from consumers in advance. He said it will override the 2009 state law on Jan. 31.
Waltuch said there are currently 31 of these firms operating.
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