By Krista Franks | 07/15/2011
The Federal Trade Commission will no longer enforce most provisions set forth in the Mortgage Assistance Relief Services Rule, according to a recent statement. The MARS Rule required real estate agents to make several disclosures when assisting distressed homeowners in obtaining short sales from their lenders or servicers. The rule also banned advance fee collection and prohibited false or misleading statements. After the Rule was enacted by Congress, several real estate agents complained that the disclosures often confused homeowners or misled them.
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By Carrie Bay | 07/05/2011
Law enforcement officials say fraudsters and con artists see opportunity in turmoil, and right now, arguably the most tumultuous economic sector is housing. In its first year, the Financial Fraud Enforcement Task Force more than doubled the number of defendants charged with mortgage fraud. Mortgage fraud punishments followed the same trend, with nearly twice as many prison sentences of more than two years. But task force members say it's not enough, especially when the economy hasn't fully recovered.
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By Carrie Bay | 04/19/2011
The Federal Trade Commission (FTC) has mailed 1,410 refund checks totaling $2.3 million to consumers allegedly defrauded by Home Assure LLC, a so-called mortgage foreclosure rescue service. The FTC alleged that the company charged consumers an up-front fee of $1,500 to $2,500, and falsely claimed its "special" relationships with lenders would enable the company to secure favorable loan modifications or stop foreclosure altogether - promises the federal agency says the company did not keep.
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By Heather Hill Cernoch | 04/11/2011
Four fair housing organizations have released their findings of a year-long undercover investigation of 80 loan modification companies, which reveal a host of corrupt practices scammers employ to target homeowners in distress. According to the report, 55 percent of loan modification companies required an upfront fee to start work or a low initial fee to conduct minimal work, such as reviewing loan documents.
Twenty-four percent advised or encouraged homeowners to stop making mortgage payments or stop contacting their lenders.
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By Brittany Dunn | 08/02/2010
Deceptive mortgage relief marketers continue to prey on financially distressed homeowners, but one such company has been stopped in its tracks. Home Assure, LLC, has been charged by the Federal Trade Commission for deceiving consumers with promises that it could save their homes from foreclosure. To settle these charges, the company must refund customers $2.4 million, and it can no longer sell mortgage loan modification or foreclosure relief services.
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By Brittany Dunn | 07/28/2010
As part of an ongoing effort against scams that target financially distressed consumers, the Federal Trade Commission (FTC) has banned several marketers from selling mortgage modification or foreclosure relief services. According to the FTC, the marketers allegedly charged homeowners up-front fees and falsely claimed they could get their mortgage modified or prevent foreclosure on their homes. Settlements regarding these allegations have been met through three separate actions.
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