The Loan Modification Scam Prevention Network, led by Fannie Mae, Freddie Mac, the Lawyers’ Committee for Civil Rights Under Law and NeighborWorks America, today announced a national campaign to prevent loan modification scams through public education, complaint reporting and coordination with local, state, and federal enforcement agencies.
As part of the campaign, the Network launched a consumer-friendly Website, www.PreventLoanScams.org, which supports national, state and local law enforcement efforts. The Website serves as a nationwide clearinghouse and destination for loan modification scam information on complaints filed, laws and regulations, and enforcement actions.
The Website includes:
• An electronic complaint form that can be filled out easily by an individual who has been scammed or by counselors or friends helping a victim of fraud;
• Names of individuals and organizations who have been identified by enforcement agencies to have allegedly committed a loan modification scam;
• Information on how to avoid a loan modification scam;
• State-by-state information about rules, regulations and resources available to homeowners; and
• News and information on enforcement efforts.
Homeowners who believe they may have been a victim of a loan modification scam, can also call the Homeowners Hope Hotline at 888-995-HOPE to log a complaint and to receive free foreclosure prevention counseling.
“We’ve joined forces with government agencies and other industry leaders to help fight loan scams across the country,” said Jeff Hayward, Senior Vice President, Fannie Mae. ”This effort links homeowners to free, legitimate counseling and helps to put scammers out of business. The goal of this campaign is to educate homeowners and empower those who have fallen victim to scammers to report and prevent future fraud.”
“By working together we can help the public identify alleged loan modification scam artists, learn how these scams work, and give them a new way to fight mortgage fraud,” said Senior Vice President Hollis McLoughlin, Freddie Mac. “The Network’s new website form will enable citizens to report fraud artists to law enforcement agencies before other borrowers are swindled out of their homes.”
Loan modification scams are schemes in which people take advantage of vulnerable homeowners. Scammers prey on homeowners in distress by guaranteeing to help the homeowner obtain a modification of their mortgage to save their home. Frequently, the borrowers pay money up front but receive no help at all and their home is lost to foreclosure.
“Receiving complaints about loan modification scammers throughout the country is crucial to supporting enforcement efforts,” said Joseph Rich of the Lawyers’ Committee for Civil Rights Under Law. ”By encouraging homeowners to take action and report fraud to the Loan Modification Scam Prevention Network, we hope to help federal, state and local enforcement officials bring actions against scammers.”
“We’re pleased to be a part of this coalition, which complements and supports our ongoing efforts to educate consumers about the warning signs of loan fraud,” said Marietta Rodriguez of NeighborWorks America. “We want homeowners to know they have a place to turn to if they think they are being scammed.”
“It’s a real shame to hear stories from consumers who are already financially struggling and who learn they have paid large amounts of money, unwittingly, to a loan modification scam organization,” said Josh Fuhrman, Vice President for Programs of the Homeownership Preservation Foundation.
Key partners include:
• Treasury Department
• U.S. Department of Housing & Urban Development
• Federal Trade Commission
• Department of Justice
• Federal Bureau of Investigations
• Federal Deposit Insurance Corp
• Office of the Illinois Attorney General
• National Association of Attorneys General
• Conference of State Bank Supervisors
• HOPE NOW Alliance
• National Fair Housing Alliance
• National Urban League
• National Council of La Raza
• National Coalition of Asian Pacific American Community Development
For more information, including additional national and local partners and tips on how to avoid and report scammers, please visit www.PreventLoanScams.org or call the Homeowners Hope Hotline. 888-995-HOPE (4673).
April 10, 2011 – April 23, 2011 Edition
