Task Force Established to Combat HAMP Scams

Creation of a multi-agency taskrnforce was announced on Thursday designed specifically to deter scam artistsrnpreying on homeowners looking for help under the Home Affordable ModificationrnProgram (HAMP).  The task force willrnoperate under the auspices of the Department of the Treasury, the new ConsumerrnFinancial Protection Bureau (CFBP) and the Office of the Special InspectorrnGeneral for the Troubled Asset Relief Program (SIGTARP.)  </p

SIGTARP, the CFPB, and Treasury willrninvestigate mortgage modification schemes, among other things, in whichrncompanies charge struggling homeowners a fee in exchange for false promises ofrnlowering the homeowner’s mortgage debt or payments through HAMP. </p

Simultaneous with the announcementrnof its creation, the task force issued a consumer fraud alert to protectrnhomeowners from HAMP-related mortgage modification scams.  The alert tells homeowners who are strugglingrnto make their mortgage payments to be aware of con artists that promise to saverntheir homes and lower their mortgage debt or their payments and offers thesernhomeowners specific tips:</p<ul class="unIndentedList"<liNo special assistance is needed tornapply for a HAMP modification and paying a third party does not improve yourrnlikelihood of obtaining one. Beware ofrnpersons claiming to be HAMP experts.rnHomeowners can make application on their own or with the help of a Housingrnand Urban Development (HUD) approved housing counselor. Applying for the program is always free.</li<liNo third party can approve arnmodification; this can only be done by the loan servicer.</li<liNo advance fee is necessary forrnmortgage modification services and in most cases charging in advance for arnmodification is illegal.</li<liHomeowners should verify thernauthenticity of any individual or company that claims tornbe affiliated with HAMP or displays a seal or logo representing the U.S.rngovernment by calling the Homeowner's HOPE^TM Hotline.</li<liBeware of individuals or companiesrnthat offer money-back guarantees or that advise stopping mortgage payments orrnnot contacting the mortgage servicer.</li</ul

The alert stresses that troubledrnhomeowners can avoid scams by working with a HUD-approved housing counselor tornunderstand their options and provides information for contacting both HAMP andrnan approved counselor.</p

 “The goal of our consumer fraud alert is tornempower homeowners with the knowledge of how to recognize and avoid thesernscams,” said Christy Romero, Deputy Special Inspector General forrnSIGTARP.  “These scams prey upon the most vulnerable homeowners as theyrndesperately hold out hope of saving their homes.  SIGTARP, the CFPB, andrnTreasury want to make sure that homeowners know a scam when they see one andrnknow where to turn for help.  SIGTARP will work with the CFPB and Treasuryrnin this joint task force and with other law enforcement partners to shut down thesernscams and to ensure that the perpetrators pay for their crimes.”

All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of MortgageNewsDaily.com is prohibited.