A New Horizon Credit Counseling Reports Joint Task Force Created to Battle Mortgage Modification Scams

mortgage modification

U.S. Treasury Issues Fraud Alert to Protect Distressed Homeowners

Fort Lauderdale, Fla. –On December 1, 2011 a new task force was created to combat scams tageting homeowners seeking to apply for the Home Affordable Modification Program (HAMP). The task force is a combined effort of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Consumer Financial Protection Bureau (CFPB), and the U.S. Department of the Treasury. Their mission is to investigate and shut down these scams while providing educational programs. A New Horizon Credit Counseling Services is a nonprofit debt consolidation organization that has been helping consumers since 1978.

“The goal of our consumer fraud alert is to empower homeowners with the knowledge of how to recognize and avoid these scams… These scams prey upon the most vulnerable homeowners as they desperately hold out hope of saving their homes,” said Christy Romero, Deputy Special Inspector General for SIGTARP.

“Treasury is fully committed to working with SIGTARP and the CFPB to shut down mortgage scams that falsely represent themselves as government programs,” said Treasury Assistant Secretary for Financial Stability Tim Massad.  “This new initiative builds on the work we have done with SIGTARP to date and other collaborative efforts throughout the federal government to educate homeowners about scams so they can protect themselves and their homes.”

Stephen Marcus, President of A New Horizon Credit Counseling said, “The consumer must be able recognize companies charging a fee for false promises of lowering the homeowner’s mortgage debt or payments.” A New Horizon regularly provides credit counseling and helps consumers manage their debt so that it can be completely paid off. They advise that if you are thinking about modifying your mortgage you can apply for free to the federal Home Affordable Modification Program (HAMP) on your own.

Marcus added, “The only party that can grant a loan modification is your mortgage servicer, so don’t rely upon promises of third parties, they cannot guarantee or pre-approve results, and never pay an advance fee. In most cases an advance fee is illegal.”

Lastly the Treasury cautions that paying a third party to assist with your HAMP application does not improve your likelihood of receiving a mortgage modification.