Attorney General's Office sues mortgage services company - WFXG FOX54 Augusta - Your News One Hour Earlier

Attorney General's Office sues mortgage services company

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Arizona Attorney General Tom Horne. (Source: CBS 5 News) Arizona Attorney General Tom Horne. (Source: CBS 5 News)
PHOENIX (CBS5) -

The Arizona Attorney General's Office has filed a consumer fraud lawsuit against a Phoenix-based mortgage company.

The suit against Making All Home Affordable, LLC (MAHA), its owner and manager, Albert Figueroa, and one of its salespersons, Steve Villanueva, was announced by Attorney General Tom Horne's office on Wednesday.

The company is accused of misleading Spanish-speaking consumers into believing that the MAHA program would allow them to obtain principal and interest reductions on their home mortgages.

MAHA ran radio advertisements in Spanish where Figueroa tells listeners that if they met with a representative they could find out if they were eligible for a reduced mortgage.

The lawsuit alleges that when consumers met with MAHA, they were informed of their eligibility, and qualified for reduced principal and interest rates despite having no knowledge of whether the consumer's lender would accept the reduction.

Consumers paid approximately $1,700 for the MAHA program but never received any reductions, according to Horne's office.

Another Arizona business, Diversified Home Solutions, LLC, is also named in the lawsuit.

According to the complaint, Figueroa would obtain a payment from a MAHA client and record a fraudulent Deed of Trust against the client's property for a nonexistent debt that Figueroa claimed was owed to Diversified Home Solutions.

Consumers who believe they are victim of deceptive mortgage practices or any other type of consumer fraud are urged to file a complaint with the state Attorney General's Office.

Copyright 2013 CBS 5 (KPHO Broadcasting Corporation). All rights reserved.

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