The Nevada federal district court recently granted a temporary restraining order against a large group of mortgage loan modification operators, following a complaint from the Federal Trade Commission which alleged that the operators violated the FTC Act and Regulation O by making deceptive representations to consumers and failing to disclose required information regarding the provision of mortgage assistance relief. The TRO prevents the operators from making misrepresentations about their mortgage loan assistance relief services, prohibits them from collecting fees from consumers prior to the execution of a written agreement for relief services, and temporarily freezes the operators' assets.
