Florida Attorney General Bill McCollum filed a lawsuit against four related South Florida mortgage companies this week. McCollum alleges that FHA All Day.Com and owner Jason Vitulano, as well as three other affiliated companies, charge up-front fees for loan modification services, purportedly collecting up to $1 million on a monthly basis.
According to the attorney general’s mortgage fraud task force, the companies were soliciting hundreds of consumers nationwide via the internet and though telemarketing robo-calls, which illegally used President Obama’s voice. Vitulano also allegedly claimed to have an attorney on staff available to assist homeowners, but investigators believe no attorneys are currently working on any of the loan modification files.

The attorney general’s office has received over 300 complaints about Vitulano and his related companies from borrowers who reported that the companies have not performed the promised foreclosure rescue services and that they were unable to contact the companies or get refunds.
McCollum’s lawsuit seeks a permanent injunction prohibiting the defendants from charging up-front fees, restitution on behalf of all victimized consumers, civil penalties of $15,000 for each violation of the Foreclosure Fraud Prevention Act, and reimbursement for fees and costs related to the investigation.
FHA All Day.Com and its affiliated companies Safety Financial Services, Inc., Housing Assistance Law Center, and Housing Assistance Now are currently located in Deerfield Beach, Florida, but were previously located in Boca Raton and Delray Beach.
McCollum said his mortgage fraud task force continues to review the practices of many companies providing foreclosure-related rescue services to ensure compliance with Florida law. The Foreclosure Rescue Fraud Prevention Act was one of the attorney general’s top priorities during the 2008 legislative session and gives his office greater authority to protect homeowners.