Liberty Home Capital states on their website that they are business and marketing consultants which also work on asset and debt restructuring. Although they do not advertise residential loan modification services, the BBB has received complaints from consumers alleging that Liberty Home Capital is soliciting them and offering loan modifications for an Installment fee. The BBB has investigated these reports and it appears that Liberty Home Capital is soliciting for Installment fee loan modifications in violation of SB-94.
On June 7, 2011, the BBB placed a secret shop call to this company to further investigate the claims made by consumers in their complaints. After speaking briefly with an employee, the call was transferred to another employee, who identified himself as a Senior Underwriter for Liberty Home Capital.
The Senior Underwriter confirmed that the company offered home loan modification services, and the explanation of services included changing the current home loan to a 40-year, fixed rate loan with “dramatic savings” to the consumer. He explained that a consumer’s loan modification was based on their “debt load level,” and that based on the consumer’s information, the company would create a “digital financial file” for the consumer. He then explained that consumers would then be approved or denied for “federal funding programs” that allow consumers to pay lower monthly home loan payments.
The Senior Underwriter’s explanation as to why their services were beneficial to the consumer were as follows: “Everyone is qualified for at least some of these federal funding programs, but if you try and do it with your direct loan provider yourself, you are going into a gun fight without bullets. We have the same software as your direct lender, and we therefore can prove to them that you qualify for this modification.” He confirmed that Liberty Home Capital does take Installmentd fees for these services. He explained that a percentage of the funds were taken once a consumer had submitted their information, and an application, for a home loan modification through the company. In the BBB’s secret shop call, this Installment fee totaled $1,814.86, and the total amount the company would charge for the loan modification was $8,418.46.
When the BBB inquired about the fees the company required in Installment, the Senior Underwriter explained that it was payment for the work done by employees to process the consumer’s home loan modification. He stated, “this is a business; we need to keep the lights on.”
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