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Mortgage Relief Firms Escape $59 Million CFPB Penalty, For Now

July 26, 2021, 6:08 PM

A pair of shuttered mortgage relief firms and their founding attorneys convinced the Seventh Circuit to vacate a $59 million judgment the CFPB won against them.

The U.S. Court of Appeals for the Seventh Circuit’s Friday ruling overturned a 2019 verdict against the bankruptcy estates of the Mortgage Law Group and the Consumer First Legal Group, as well as the firms’ four principal members, for allegedly scamming consumers seeking to escape underwater home loans.

The Seventh Circuit’s three-judge panel shortened the period under which the violations occurred by several months and overturned the lower court ruling that three of ...

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