CFPB Wins $59 Million Judgment Against Mortgage Relief Firms

The Consumer Financial Protection Bureau won a $59 million judgment against a pair of shuttered mortgage relief law firms that the bureau alleged scammed consumers seeking to escape underwater home loans.

The bankruptcy estates of the Mortgage Law Group and the Consumer First Legal Group, along with the firms’ principle members, will pay a combined $59 million in restitution and civil money penalties, according to a Nov. 4 post-trial order by Judge William Conley of the U.S. District Court for the Western District of Washington.

The two firms had argued that some district court orders and the U.S. Supreme Court’s ...