Lawyers' Committee Applauds U.S. Department of Justice's Recent Massive Crackdown on Mortgage Fraud
FOR IMMEDIATE RELEASE: June 21, 2010
WASHINGTON, D.C. - The Lawyers' Committee for Civil Rights Under Law applauds U.S. Attorney General Eric H. Holder Jr. and the U.S. Department of Justice's national initiative, Operation Stolen Dreams, to combat mortgage fraud which netted 500 arrests since March.
As announced by Attorney General Holder during a June 17th press conference, Operation Stolen Dreams yielded 1,215 criminal defendants in cases that uncovered more than $2.3 billion in losses and recovered more than $147 million in civil enforcement actions.
"As the Lawyers' Committee continues to educate and empower homeowners and partner with federal, as well as state and local law enforcement in the fight against loan modification fraud through our Loan Modification Scam Prevention Network (LMSPN), we commend the aggressive efforts of DOJ's Financial Fraud Enforcement Task Force to attack all types of mortgage fraud," said Lawyers' Committee for Civil Rights Under Law Executive Director Barbara Arnwine. "Like many of the fraudulent schemes that are the subject of DOJ enforcement efforts, loan modification fraud and scams often target minority and immigrant communities."
In response to this national crisis, the Lawyers' Committee has joined Fannie Mae, Freddie Mac, NeighborWorks America and the Homeownership Preservation Foundation to create and lead a broad coalition of government and non-government agencies and organizations, the LMSPN, to prevent loan modification and foreclosure rescue scams through public education and by gathering scam complaint reports that are compiled and analyzed in partnership with enforcement officials across the country.
Over 3,800 complaint reports have been compiled into the Lawyers' Committee's national LMSPN Database since its inaugural month (February-March 2010). Currently, the average fee amount allegedly paid by homeowners without receiving the services promised is over $3,000 per homeowner, and the total fee amount paid by all homeowners who have filed complaint reports now exceeds $10 million.
Homeowners should be knowledgeable of available resources:
- Modifying your mortgage can be time consuming and sometimes frustrating, but don't try to buy a quick fix! The best help for loan modifications is FREE.
- Get help you can trust. Get advice on modifying your mortgage or other loans from your local HUD-approved counseling agency or your lender/servicer. Or call 888-995-HOPE (4673) for help.
- Stop Scammers in their tracks! Go to preventloanscams.org for more information and to report scam activity you have seen or experienced to the Loan Modification Scam Prevention Network. With your help we can bring more scammers to justice.
Homeowners should also be aware of how to spot a potential scam:
- A company/person asks for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage.
- A company/person guarantees they can stop a foreclosure or get your loan modified.
- A company/person advises you to stop paying your mortgage company and pay them instead.
- A company pressures you to sign over the deed to your home or sign any paperwork that you haven't had a chance to read, and you don't fully understand.
- A company claims to offer "government-approved" or "official government" loan modifications.
- A company/person you don't know asks you to release personal financial information online or over the phone.
About the Lawyers' Committee
The Lawyers' Committee for Civil Rights Under Law (LCCRUL), a nonpartisan, nonprofit organization, was formed in 1963 at the request of President John F. Kennedy to involve the private bar in providing legal services to address racial discrimination. The principal mission of the Lawyers' Committee is to secure, through the rule of law, equal justice under law, particularly in the areas of fair housing and fair lending, community development, employment discrimination, voting, education and environmental justice. For more information about the LCCRUL, visit www.lawyerscommittee.org.
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