The Loan Modification Scam Prevention Network was created to strengthen the fight against these scammers and support existing efforts at the national, state and local levels. The lead organizations of the effort include Fannie Mae, Freddie Mac, the Lawyers' Committee for Civil Rights Under Law and NeighborWorks America, among others, with representatives from key governmental agencies, such as the Federal Trade Commission, the U.S. Department of Housing and Urban Development (HUD), U.S. Department of Justice, the U.S. Treasury Department, the Federal Bureau of Investigation, and state Attorneys General offices, as well as leading non-profit organizations from across the country.
This new, broad coalition includes a two-part response. First, NeighborWorks is leading a national media and outreach campaign to educate homeowners and the public on potential scams. (Please visit the NeighborWorks' website on this effort www.loanscamalert.org.) Second, the Lawyers' Committee is leading an effort to increase reporting and prosecution of alleged scammers to support ongoing enforcement efforts at the federal, state and local levels.
The Loan Modification Scam Prevention Network
The Lawyers' Committee, along with our partners, is leading a large-scale mobilization of resources in a comprehensive campaign to enhance and support existing state and local efforts, increase scam reporting, educate homeowners, and work with law enforcement. This comprehensive campaign includes:
•Increased Reporting of Loan Modification Scams and Creation of National Database - Increasing the number of complaints submitted by homeowners is a top priority of the Network. Complaints against alleged scammers can now be submitted via a simple online form (available in hard copy) by homeowners anytime, housing counselors and advocates working with homeowners, at foreclosure prevention events, and through the Homeowners' HOPE Hotline (1-888-995-HOPE). A national database (National Loan Modification Scam Database) has been created to house these complaints, which supports federal, state and local law enforcement efforts and provides a comprehensive picture of the loan modification scam crisis nationwide.
•Support of State and Local Efforts - The Network supports ongoing state and local law enforcement efforts by sharing complaint information, providing access to national data to determine whether alleged scammers are operating across jurisdictions and state lines, working with active coalitions, educating the public and homeowners, and supporting commonsense legal and policy reforms.
•Increased Enforcement Actions - It is anticipated that as a result of the national Loan Modification Scam Database, enforcement activities will increase at the state and local level not only by prosecutors, but also state regulatory agencies. In addition, the Network will coordinate closely with governmental law enforcement and local legal organizations representing victims of scams to file high impact litigation where appropriate.
•Direct Homeowner Contact - Trained volunteers will contact homeowners who have reported scams to conduct a more substantive intake to collect detailed information about scammers and how they operate and transmit this information to appropriate law enforcement agencies.
•Public Education - A strategic public education effort is underway, utilizing both online and offline tools, to use the information in the Database and the experience of leaders on the ground to help homeowners identify and avoid scams and paint the clearest picture of the havoc wrought by loan modification scammers.
For more information go to www.preventloanscams.org
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