March 4, 2013
** National Consumer Protection Week Consumer Alert***
Avoid Scams by Seeking Mortgage Assistance through Home Again
Las Vegas, NV – In conjunction with National Consumer Protection Week (NCPW), Nevada Attorney General Catherine Cortez Masto announced today the five most common complaints addressed by her Mortgage Fraud Unit (MFU). The MFU investigates and prosecutes violations of mortgage fraud under NRS 205.372, as well as foreclosure rescue fraud, foreclosure fraud, and any and all other theft related crimes arising out of mortgage related transactions.
The Top 5 Most Common Mortgage Fraud Consumer Complaints by Category in 2012:
- Loan Modification and Other Loss Mitigation Issues – Subject offers to save someone’s home through various methods such as modifying the loan or reducing the principal.
- Documentation Problems – Robo-signing, forged documents, unable to produce note, homes foreclosed through questionable documents, complainant contests foreclosure based on a lack of the original note.
- Customer Service Issues – Lender or servicer are unwilling or are being difficult about working with the homeowner on a loan modification.
- Falsified Loan Documents – Loan documents misrepresented borrowers’ true income/debt.
- Miscellaneous – Subject attempts to purchase home through fraud, subject sells or rents home when not the true owner, fraudulent lien, subject offers to act as a mediator for someone attempting to acquire loan.
“I encourage Nevadans to seek mortgage assistance through Home Again Nevada,” said Masto. “In general, there is no reason to hire a for-profit loan modification company. Homeowners can directly negotiate loan modifications with Home Again Nevada who will connect you with a trained Housing and Urban Development certified counselor for free. Contacting Home Again Nevada will help people from falling victim to scams.”
The AG’s office received 12,476 complaints in 2012. Of those, 788 were mortgage fraud consumer complaints from the following counties: Carson, Clark, Douglas, Elko, Esmeralda, Lyon, Nye, Washoe, and White Pine. In resolving those 2012 MFU complaints, $442,745 was ordered to be put back into the hands of consumers. Since the MFU started in 2010, $1,470,167 worth of restitution has been ordered.
Consumers should be aware of scams related to the National Mortgage Settlement as well as scams connected to loan modification or foreclosure rescue. Consumers who spot either of these scams or others are encouraged to report them to the Attorney General’s Bureau of Consumer Protection Hot Line by calling 702-486-3132.
Background on Home Again:
Home Again is a program launched in January that makes it easier for Nevada homeowners to determine what state or federal assistance may be available to them with a single “one-stop,” free resource. Initiated by Masto, the Home Again Nevada Homeowner Relief Program is designed for:
- Homeowners seeking loan modification
- Borrowers who are current, but “underwater”
- Those who have lost their homes to foreclosure
- Households working toward home ownership
The no-fee service is available for all Nevadans simply by calling toll-free 1-855-HLP-4-NEV (1-855-457-4638) with both English and Spanish-speaking assistance available. The call center is open 7:00 a.m. – 7:00 p.m. Monday through Friday. Information is also available at HomeAgainNevada.gov.
This consumer alert is part of National Consumer Protection Week (NCPW), March 3-9, 2013. Starting Monday, March 4 and running through Friday, March 8, the Nevada Attorney General’s Office will issue daily consumer alerts relevant to Nevadans.
More information about NCPW is also available at ncpw.gov. Consumer Protection information can also be found on the Attorney General’s website (ag.nv.gov), and the Federal Trade Commission’s website (ftc.gov).
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