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Wednesday, November 17, 2010

Loan Modification Scam Alert: Desktop Loans

The Washington State Department of Financial Institutions (DFI) has received complaints from residents about Desktop Loans, a company claiming to provide loan modification services.

The complaints claim that Desktop Loans is offering loan modification services for $700 to homeowners facing imminent foreclosure. Ultimately, no loan modification services are provided by the company, and the individual is out $700.

Desktop Loans is not licensed to do business in Washington.

View the full consumer alert:

If You Feel You're a Victim
If you feel you have been victimized by these individuals, and you reside in Washington State, you may file a complaint with the Washington State Department of Financial Institutions.

File a complaint by contacting the Consumer Services Division at (360) 902-8703, or by filing a complaint.

Complaint forms are available at

Loan Modification Services Must Be Licensed
DFI has received a number of inquiries regarding the legality of providing this service in Washington. While there is nothing inherently illegal about this business, those providing this service in the State of Washington must be licensed as loan originators, mortgage brokers, or consumer loan companies.

You can verify a license with DFI by calling 1.877.RING DFI (746-4334) or online at

Warning Signs of a Possible Loan Modification Scam
  • Company operates out of state
  • Company is not licensed with DFI
  • Company claims license is not required because attorneys are involved
  • Out of state attorneys are not licensed to practice in Washington
  • Money is required upfront before any paperwork is reviewed or signed
  • Company tells you NOT to contact your lender
  • Company requires direct access to your bank account or credit card
For more information about loan modification services and how to protect yourself, visit