HUD seeks to stamp out loan mod scams with PreventLoanScams.org online reporting tool

HUD seeks to stamp out loan mod scams with PreventLoanScams.org online reporting tool

February 26, 2010

The U.S. Department of Housing & Urban Development (HUD), in partnership with the Loan Modification Scam Prevention Network, has announced the launch of PreventLoanScams.org. “Troubled homeowners lose time and money when they are tricked by con artists who promise to help but never do,” said John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “This initiative combines the collective energies of public and private enterprises to strengthen the ability of law enforcement to prosecute scammers and protect homeowners.”
The Loan Modification Scam Prevention Network, a national coalition of public and private enterprises, is led by the Lawyers’ Committee for Civil Rights Under Law. Fannie Mae, Freddie Mac, the Homeownership Preservation Foundation, and NeighborWorks America assist the Lawyers’ Committee in leading the coalition’s fight against loan modification scams.
The Network developed PreventLoanScams.org to provide homeowners with a single destination to report alleged scammers. Complaints filed online are added to a national complaint database and forwarded to the appropriate law enforcement agencies for review. The Network estimates that the website will assist approximately 50,000 homeowners affected by scams. Additionally, HUD has directed its local fair housing and housing counseling grantees to begin reporting alleged loan modification scams via the website.
The creation of a national complaint database is a major step in the fight against loan modification scams. Prior to the launch of PreventLoanScams.org, federal, state, and local government agencies could not share complaint data with non-profit organizations. The new system allows for better analysis of trends across jurisdictional lines and will likely lead to an increase in private enforcement action filings.
For more information, visit PreventLoanScams.org or www.hud.gov.

Compliance, Originations, Residential, Marketing, Settlement, Technology

Subscribe to the nmp Daily

Subscribe to the nmp Daily