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Government boosts efforts to protect homeowners from scamsMaking Home Affordable, a recently launched program, aims to help 7 to 9 million families refinance or modify their mortgages, according to the Treasury. The plan intends to aid individuals to restructure and lower future mortgage payments. However, some financially vulnerable homeowners are looking for answers elsewhere, and could be misled. The FTC recently discovered 71 mortgage foreclosure companies running "suspicious" ads targeting homeowners, the Treasury reports. Such ads are sometimes behind foreclosure or loan scams, designed to swindle those legitimately looking for financial assistance. The government, however, is developing aggressive plans to combat this activity. Earlier this week, the Obama administration officially unveiled its plans to curtail mortgage loan modification fraud and help American homeowners stay informed and safe. "This administration is deeply committed not just to providing at-risk homeowners with assistance but also to cracking down on anyone who seeks to defraud them," Treasury secretary Tim Geithner commented. This week, the Financial Crimes Enforcement Network (FinCEN) has increased its efforts to hunt down questionable foreclosure or loan programs. FinCEN identifies and refers scam lenders to law enforcement authorities using information from groups within the consumer protection community. "If you discriminate against borrowers or prey on vulnerable homeowners with fraudulent mortgage schemes, we will find you, and we will punish you," said attorney general Eric Holder. Many mortgage lenders such as Chase Home Finance and Suntrust Mortgage are also making efforts to protect consumers by passing alerts to customers and advising them on how to avoid scams and seek free, reputable advice.
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