In brief: Mortgage modifiers barred from practice

Three men who operated a Post Falls mortgage modification business will return $7,000 to clients and pay $1,000 in fees and costs, Idaho Attorney General Lawrence Wasden said Wednesday.

Randy Allen, Clint Paulsen and Travis Smith did not admit any wrongdoing in a consent agreement that will also bar them from further activity related to negotiating new mortgage terms for distressed homeowners.

The three would be subject to a $30,000 civil penalty if they do not comply with the deal.

Wasden’s office received six complaints about HomeModifier, a business the three men owned as APS Northwest Idaho LLC. HomeModifier did not have the proper licenses from the Idaho Department of Finance, Wasden said.

Consumers said they paid for services they never received from the company, which had its own financial difficulties, he said.

“While I understand that these three men never meant to injure consumers, this case serves as a warning to all modification companies,” said Wasden, who made scrutiny of mortgage modifiers a priority after Coeur d’Alene-based Apply 2 Save Inc. victimized hundreds of clients before closing in May 2009.

Bert Caldwell

Red Lion gets help with redevelopment

Red Lion Hotels Corp. has hired a New York investment banking firm to help the Spokane-based chain determine how best to redevelop some of its older properties, Chief Executive Officer Jon Eliassen said Wednesday.

He said the company began working with CSCA Capital Advisers LLC on new strategies six months ago.

Red Lion plans to expand through franchising, Eliassen said, and the company wants all the 43 hotels in its portfolio to meet internal quality standards before asking new properties to meet the benchmarks.

For example, he said, Red Lion last year returned its Astoria, Ore., hotel to the port because the 40-year-old property needed extensive renovations.

He said Red Lion wants to remain in that market and would consider a new lease with the port, but it will look at other options as well.

CSCA, Eliassen said, can access capital resources that would enable Red Lion to make alterations in its other older hotels.

Bert Caldwell

Briefcase

From wire reports

• Las Vegas Sands said Wednesday it plans to pay off more than $1 billion in outstanding debt because of its previously announced amendment to a credit facility. The casino and resort operator led by billionaire Sheldon Adelson says the amendment extends the maturity of nearly 75 percent of its $3.9 billion in term loans and pushes their maturity to 2015 and 2016.

• Mortgage applications rose 13 percent last week as consumers refinanced at the lowest rates in decades. The increase was driven by a 17 percent surge in applications to refinance home loans. Refinancing hit its highest level since May 2009.

• Target Corp. saw its second-quarter net income rise 13.4 percent in the second quarter, helped by cost-cutting, improving credit card business and demand for fashion, which carry fat profit margins. But it struggled with disappointing sales.

• Limited Brands Inc. says its second-quarter net income rose sharply as more Americans shopped at its mall stores – Victoria’s Secret and Bath and Body Works – and it recorded several one-time gains. The company also raised its full-year outlook.