FTC Adds Defendant in Deceptive Mortgage Loan Modification Case


WASHINGTON, D.C. – September 2, 2011 – (RealEstateRama) — The FTC has amended its complaint against U.S. Mortgage Funding, Inc. by adding as a defendant Louis Gendason.  The amended complaint also asks the court to issue a preliminary injunction against Gendason that will reduce the chance of consumer injury and preserve the possibility of consumer redress while the defendants await trial.

The FTC alleges that the defendants in this case falsely promised financially distressed consumers that either they would get loan modifications to make their mortgages much more affordable or the consumers would get a full refund, if the defendants were unsuccessful.  The defendants charged up to $2,600 for their supposed services and typically asked for half of the fee up-front, claiming a success rate of up to 100 percent.

After the FTC filed its original complaint against the defendants in February 2011, Commission staff learned that although Louis Gendason’s name did not appear on corporate records, he, along with other defendants, had been running U.S. Mortgage Funding, Inc. and Lower My Debts.Com, LLC.

The Commission vote approving the amended complaint was 5-0.  The FTC filed the amended complaint in the U.S. District Court for the Southern District of Florida on July 26, 2011.  (File No. 1023146; the staff contact is Jessica D. Gray, Southeast Region, 404-656-1350.)

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them.  To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call  1-877-FTC-HELP (1-877-382-4357).  The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad.  The FTC’s website provides free information on a variety of consumer topics.  Like the FTC on Facebook and follow us on Twitter.

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1-877-FTC-HELP (1-877-382-4357)


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