Task force created to combat mortgage relief scams

A new federal task force was recently created to target scams and con artists preying on struggling homeowners looking for mortgage relief. The task force will investigate and shut down any schemes promising to help borrowers who believe they are applying for the Home Affordable Modification Program.

The Associated Press reported the task force will report to the Treasury Department, Consumer Financial Protection Bureau and the Office of the Special Inspector General for the Troubled Asset Relief Program. The three agencies also issued consumer warnings to homeowners of how they can safely apply to the program online or in person with an approved housing counselor.

The Baltimore Sun reported that the agencies warned third-party lenders cannot modify government originated home loans, or pre-approve any HAMP applications, only the servicer of the loan can make those changes. It is illegal for a lender to charge any fees prior to a loan modification. Consumers should not look to third-party lenders to modify their loans, as it does not improve their chances of being approved, and many scams will create fake U.S. seals or logos to gain consumer trust.

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