Washington State Department of Financial Institutions

Be Cautious When Using Loan Modification Services

The Washington State Department of Financial Institutions (DFI) advises homeowners who are delinquent on their mortgage to be cautious about using the services of someone offering to help them work with their lender to modify the terms of their home loan.

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.

Be careful when dealing with companies in other states. If you do business with a company outside Washington, and they do not perform as promised, your only ability to seek damages may be a private lawsuit against them.


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