Loan modification service accused by state of operating without license
| Friday, Nov 13 2009 01:01 PM
Last Updated Friday, Nov 13 2009 01:01 PM
To find out if a company or individual has a real estate license, enter the name on the California Department of Real Estate's license database online at: www2.dre.ca.gov/PublicASP/pplinfo.asp
You can also use the DRE Web site to find out if there is disciplinary action against someone's license, or to file a complaint. Go to: www.dre.ca.gov/cons_home.html
For more information, call the district DRE office that includes Bakersfield, (559) 445-5009.
The California Department of Real Estate has issued an order to "desist and refrain" to the operators of K.N.C. Financiera Inc., a Bakersfield company that was marketing loan modification services even though its leaders did not have real estate licenses, according to the state.
The two principals of the company "at no time" have been licensed by the state "in any capacity," said Tom Pool, the department's assistant commissioner.
Ricardo Melgoza of Bakersfield and Jorge Zepeda of Fresno ran K.N.C., which the Better Business Bureau of Central California rated an F on a scale of A+ to F.
Neither Melgoza nor Zepeda could be reached for comment.
A man who answered the phone at the last known telephone number for the company said the call had reached a private residence and there was no one there by the name of either Melgoza or Zepeda.
Filed Nov. 2, the state's order lists K.N.C.'s address as 1701 Westwind Drive, Suite 101, which is inside the MetroCentre office building. There was no company called K.N.C. listed on the directory in the building's lobby, nor on signage outside office suites.
The state's order said at least five people paid the company amounts ranging from $800 to $1,500 to modify home loans, which is illegal without a real estate license.
Pool declined to comment on whether K.N.C. actually delivered the services it was paid for, or whether the company accepted money upfront.
"All we had to prove was that they took money at all, because you can't do that without a license," he said.
None of the K.N.C. clients listed in the order could be reached for comment.
Senate Bill 94, signed into law last month and effective until Jan. 1, 2013, prohibits any person, including licensed real estate professionals, from collecting upfront fees for performing or attempting to perform loan modification work. It also prohibits anyone from requiring homes be used as collateral for final compensation, or taking a power of attorney from a borrower.
Violation of the law is a misdemeanor.
Individuals who work as real estate agents or brokers without a license are subject to a fine of up to $20,000 and/or up to six months in jail. Corporations can be fined up to $60,000.
