HUD Steps Up Mod Scam Vigilance

Posted by Orb Staff on March 03, 2010 No Comments
Categories : Mortgage Servicing

The U.S. Department of Housing and Urban Development, in partnership with the Loan Modification Scam Prevention Network, has launched PreventLoanScams.org, a Web site where servicers can report alleged scammers.

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.

Complaints filed on the new PreventLoanScams.org Web site are added to a national complaint database and forwarded to the appropriate law enforcement agencies for review, HUD says. The Loan Modification Scam Prevention Network estimates that the site 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 Web site.

Prior to the Web site's launch, federal, state and local government agencies could not share complaint data with nonprofit organizations. HUD says the new system allows for better analysis of trends across jurisdictional lines and will likely lead to an increase in private enforcement action filings.

SOURCE: Department of Housing and Urban Development

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