Traditional mortgage fraud includes situations in which homebuyers and/or lenders falsify information to obtain a home loan. Homebuyers should never sign mortgage documents that have incomplete or inaccurate information.
Mortgage Rescue and Loan Modification Scams: Many so-called foreclosure rescue companies or foreclosure assistance firms claim they can help struggling homeowners save their home from foreclosure. Some are brazen enough to offer a money-back guarantee. Unfortunately, most of these foreclosure fraudsters take your money and run.
Reverse Mortgage Scams: Reverse mortgages can be useful products, but have been associated with deceptive practices and allegations of high-pressure sales tactics and the risk of being steered into inappropriate loans and annuities.
Civil Division's Consumer Protection BranchThe distressed condition of the national housing market, paired with high unemployment, has created a fertile environment for unscrupulous fraudsters seeking to take advantage of desperate homeowners.
Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Consumer Financial Protection Bureau, U.S. Department of the Treasury.Homeowners struggling to make their mortgage payments should beware of con artists and scams that promise to save their homes and lower their mortgage debt or payments.
Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Consumer Financial Protection Bureau, U.S. Department of the Treasury.
FannieMaeThe best protection against predatory lending and mortgage fraud is to shop around for a mortgage loan. Ask questions and get explanations so that you have a complete understanding of the loan. Be sure you know the total borrowing cost over the life of the loan.
Federal Trade Commission, 2007The Federal Trade Commission, the nation’s consumer protection agency, says that when you’re shopping for a home loan, it’s important to understand all the terms and conditions of a proposed loan. Start with what is in the ad itself. Read what’s between the lines as well as what’s in front of your eyes. Tips on what to look for and where to call.
U.S. Department of Housing and Urban Development (HUD)A brief page explaining reverse mortgages, mortgage calculators, and lenders and counselors authorized to handle these transactions.
Federal Trade Commission, February 2011Learn about consumer rights, warning signs and where to go for help concerning mortgage assistance and foreclosure scams.
Federal Trade Commission, 2009Concise summary of reverse mortgages, explanations, types, features, how to recognize a good deal, and where to report fraud.
U.S. Department of Housing and Urban Development, December 2005Brief flyer explaining fraud and its consequences plus where to report fraud.
U.S. Department of Housing and Urban Development, October 2003Flyer listing tips for consumers, common predatory practices, definition of loan fraud, and information on where to call for help.
Office of Comptroller of the Currency, 2009Brochure explaining the types of modifications scams and where to go for help.
Federal Trade Commission