FHA All Day -- a loan modification operation based in Boca Raton, Fla. -- is facing federal charges for allegedly scamming thousands of distressed homeowners out of millions of dollars.
The company falsely told borrowers that they had already been approved for a mortgage modification and claimed to have a legal team working on its behalf. There actually was only one lawyer working for the firm at any given time since it opened its doors in the fall of 2008 and none at all by the time FHA All Day shut down the following summer.
Borrowers reportedly paid between $2,500 and $2,700 in upfront fees, but few, if any, actually received a lender-approved permanent loan workout. The company's 10 principals, who are accused of bilking consumers out of more than $7 million, face charges tied to mail and wire fraud.