New York to charge loan modifier in suit

New York State’s probe into loan modification businesses includes plans to file civil charges against one loan negotiator, a law enforcement official said.

The suit against Long Island’s largest loan modification company will charge the company, AmeriMod, with false advertising and illegally charging upfront fees.

Fifteen other companies are expected to receive subpoenas, the official said.

Company owner Salvatore Pane told Newsday Tuesday that AmeriMod is following compliance per the law, which changes constantly.

At all times, we’ve cooperated 100 percent and look forward to continuously working to stay in compliance, he said.

The company, which advertises a success rate of above 90 percent, is one of many that have sprung up promising to negotiate better terms on mortgages for troubled homeowners. Some charge thousands of dollars for their services, including upfront fees, which are illegal, the newspaper said.

The economic downturn has bred an industry of scam artists and opportunists preying on vulnerable consumers who are fighting to stay in their homes, Attorney General Andrew Cuomo said in a statement.

Our investigation is aimed at cleaning up this industry and protecting homeowners, he said.