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RENO, NV – Hundreds of Nevada families, fighting to save their homes from foreclosure, may have received some bad news Tuesday.

Around thirty Nevada loan modification providers were shut down by the state Tuesday morning for failing to comply with a state law that went into effect on October 1st. For many families in the loan modifying process, this could mean they now end up losing their home.

The change essentially effects anyone in our community who is struggling to make their house payment each month. The state legislature passed the law in order to reduce fraud in our state.

It requires loan modification companies to meet special requirements in order to be licensed, things like a background and a credit check. It also requires those companies to pay a $75,000 dollar surety bond, meant to give their clients assurance they won’t be scammed.

Jason Norris is managing member of MFG Loan Modification Services. He was notified by email that his company could no longer operate.

“This company will be dissolved,” said Norris.

The new state law required MFG to pay its insurance company a nearly $25,000 dollar share of a surety bond, a cost that the small local business couldn’t afford. But without the bond, their operation is no longer legal.

“I’m frustrated because I think it’s a much-needed service for our community. We’re sitting here, trying to do a good thing,” said Norris.

He says since the company began offering loan modifications a year and a half ago, its helped about 100 local families save their homes from foreclosure.

A local mother of four, who wants to be known only as “Rose,” says MFG helped reduce her monthly mortgage rate by nearly $800.00. She says what the company did for her family was a miracle.

“It was the greatest feeling ever. I was crying. It was such a relief to know we could stay in our house and the payments would be so much smaller,” said “Rose,” a homeowner in Cold Springs.

Norris says his company could have helped hundreds, maybe thousands more people like “Rose” if it was allowed to stay open. He says ten local families are already in the process of reducing their mortgage rates. Norris blames fraudulent loan companies for giving all loan companies a bad name.

“I feel like I am doing a disservice to my community. Some of my clients, their graciousness and how they’ve thanked me–it’s amazing. It makes an impact to families,” said Norris.

A spokesperson for the Nevada Division of Mortgage Lending says the law was not meant to weed out the good, law-abiding loan companies, but it was simply meant to protect Nevada homeowners from scams. Unfortunately while they realize the law may be unintentionally hurting good loan companies, the law is there for a reason and no exceptions can be made.

Clients of MFG Loan Modification Services will be passed onto the office of local attorney, David Adkins who can provide services under the Nevada State Bar Association.

List of eligible loan modification companies

List of ineligible loan modification companies:

• 1st Assist LLC




• Alexander Cherie Ltd




• Americas Home Solution




• Boss Loan Modification LLC




• Focus 2000 Financial Corp.




• Home Solutions Center




• House Payment Rescue




• Integrity First Modification Corp

.


• Jaleeter LLC




• Las Vegas Loan Modifications LLC




• MFG Loan Modification Services LLC




• National Foreclosure Advocate




• National Foreclosure Prevention LLC




• Nevada Foreclosure Aid




• Nevada Property Modification




• Note Modification Specialists




• Red Zebra USA LLC




• Residential Loan Modification LLC




• The Millennium Consulting Group, Inc.




• The Mortgage and Debt Relief Center




• Time2React.com LLC




• Uno Processing