Federal and State Agencies Crack Down on Mortgage Modification and Foreclosure Rescue Scams. The Federal Trade Commission today announced a crackdown on fraud and deception by mortgage modification and home foreclosure rescue companies. The FTC is seeking to halt the proliferation of these mortgage relief scams . At a joint press conference today, Treasury Secretary Timothy Geithner, Attorney General Eric Holder, Department of Housing and Urban Development Secretary Shaun Donovan, and, on behalf of state enforcers, Illinois Attorney General Lisa Madigan, joined FTC Chairman Jon Leibowitz in warning consumers about these types of scams and in encouraging consumers to seek out free, HUD- approved housing counselors for help with their mortgages. The FTC and Attorney General Madigan also announced enforcement actions and initiatives. This brings to 1. FTC in the last year. More than 2. 0 state law enforcers also have taken actions against companies engaged in these types of deception, including 2. Illinois Attorney General Madigan. The FTC also announced today that it has sent warning letters to 7. The FTC identified these companies through a nationwide review of Internet and other advertisements and warned these companies that their ads may violate federal law. State law enforcers also have sent warning letters to companies that are potentially engaging in such illegal practices, including more than 6. Attorney General Madigan. Finally, the FTC joined forces with a wide array of government, non- profit and mortgage industry members to launch a new consumer education campaign to help those in financial trouble avoid becoming the victims of a loan modification or foreclosure rescue scam. The Home Rescue program is designed to help homeowners who are struggling to pay their mortgage. Home Rescue can provide up to one year of mortgage payments, with a.According to the FTC, these schemes typically operate in the following way. First, they use terms like . The federal government took over the firms in. The government of your country plans a roof for you. Sit back and take a breather for the government mortgage help program is aimed at your welfare. The Mortgage Rescue Scheme has closed. Find out what other support you can get. Mortgage payments can be provided in Oregon from the Home Rescue Program. Government grants and subsidies can be used to pay a homeowners mortgage in Oregon. Often, after collecting the fee, these companies do little or nothing to help consumers. In each case described below, the FTC is seeking, or already obtained, a temporary restraining order to halt the defendants. Fed. Mod markets mortgage loan modification and foreclosure relief services to homeowners who are in financial distress, delinquent on their mortgages, or in danger of losing their homes to foreclosure. In radio advertisements, the FTC alleges, Fed. Mod induces homeowners to call its toll- free number by misrepresenting that it is part of or affiliated with the federal government, although it is not. According to the complaint, Fed. Mod often fails to answer or return consumers. The sites were used to entice financially strapped consumers to seek mortgage loan modification services under the guise that the services were associated with, or were actually, the U. S. The FTC alleges that the defendant misled consumers nationwide. A federal district court granted the FTC. The FTC and the defendant stipulated to a preliminary injunction prohibiting him from holding himself out as an agency of any U. S., state, or local government, or as being affiliated with any such agency. Home Assure d/b/a Expert Foreclosure. In this case, the FTC alleges that the defendants promise consumers facing imminent home foreclosure that they can stop the foreclosure, regardless of the amount the consumer owes his or her lender. The defendants are charged with falsely claiming that they have special relationships with lenders, have helped thousands of consumers avoid foreclosure, and will provide a 1. They typically charge consumers an up- front fee of $1,5. FTC alleges, do little or nothing to help them avoid foreclosure and fail to give refunds when foreclosures are not stopped. Hope Now Modifications LLC and New Hope Property LLC d/b/a New Hope Modifications LLC. On March 2. 4, the FTC announced two related cases alleging that the defendants misled consumers about their ability to provide mortgage loan modification and foreclosure relief, and misrepresented that they were affiliated with or part of the HOPE NOW Alliance, the non- profit, HUD- endorsed organization that is a broad- based coalition of credit and home ownership counselors, lenders, and other mortgage market participants. In each case, the court issued a temporary restraining order with an asset freeze and set dates for a preliminary injunction hearing. The New Jersey Attorney General also filed state court actions against both sets of defendants, and those cases are in litigation. The letters inform these companies that their ads may violate federal law. The ads were identified during a nationwide surf of Internet, direct mail, and spam advertisements that focused on ads for mortgage relief targeted at financially distressed homeowners. These advertisements contain potentially deceptive claims, touting guaranteed results, success rates of over 9. Through this initiative, borrowers will receive materials about how to spot and avoid mortgage rescue scams at housing counseling outreach centers, directly from their mortgage companies, and online. Joining the FTC in the effort are The HOPE NOW Alliance, the Homeowners Preservation Foundation, and Neighbor. Works America, which are non- profit organizations that work to help distressed homeowners get free help and counseling through HUD- certified housing counselors, all of whom work directly with borrowers to help them stay in their homes. Several national mortgage companies, including Chase Home Lending, Suntrust Mortgage, and GMAC Mortgage, will be voluntarily sending consumer education information directly to consumers through a variety of methods, including during loan counseling sessions, in monthly statements, in correspondence to delinquent borrowers, and on their Web sites. Freddie Mac also is distributing consumer education materials to its servicing partners. In addition to the New Hope Modifications and Hope Now Modification cases filed last month, the Commission today announced complaints were filed against the following defendants: Fed. Mod . The FTC would like to thank the Attorneys General of California and Idaho, the Better Business Bureau (BBB) of the Southland, the Orange County District Attorney. Loan Rescue – Property Tax Assistance Page 1 of 1 01/15/13 Loan Rescue Program - Past Due Property Tax Assistance The Michigan Homeowner Assistance Nonprofit. This case was filed in the U. S. District Court for the Central District of California. This case was filed in the U. S. District Court for the District of Columbia. The defendants also have been the subject of law enforcement actions or investigations by the Minnesota, North Carolina, and Florida Attorneys General. This case was filed in the U. S. District Court for the Middle District of Florida, Tampa Division. The Commission vote to issue each complaint was 4- 0. NOTE: The Commission authorizes the filing of complaints when it has . The complaints are not a finding or ruling that the defendants actually have violated the law. Copies of the documents related to these cases are available from the FTC. The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC. The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,5. U. S. 0. 92- 3. 07. Fed. Mod); 0. 92- 3. Home Assure, LLC)) (Civ. SAC0. 9 - 4. 01 CJC (MLGx) (Fed. Mod); 1: 0. 9- cv- 0. T2. 3- TBM (Home Assure, LLC)) (FTC- HUD.
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