NY AG targets mortgage modification firms

GARDEN CITY — New York's attorney general says consumers do not have to pay upfront fees to companies that promise help in staving off home foreclosures.

Andrew Cuomo says his office plans to sue one Long Island company that allegedly charged such fees.

The companies promise to negotiate lower mortgage rates and other consumer benefits. Their fees are often 1 percent of the mortgage, which can run into thousands of dollars.

Cuomo notes that if consumers have money for the fees, the money could be better spent paying off mortgages. He also says there are programs through HUD that offer consumers free advice for the same services.

Cuomo says investigators are also issuing subpoenas to 14 other companies as part of an ongoing probe.