FTC Resources for Reporters
Cracking Down on Mortgage Relief Scams
Mortgage relief scammers falsely claim that, for a fee, they will negotiate with your mortgage lender or servicer to obtain a loan modification, a short sale, or other relief to avoid foreclosure. Many of them pretend to be affiliated with the government or government housing assistance programs. In the past few years, we’ve brought over 30 cases against marketers of these services, and partnered with state law enforcers to bring hundreds more. In 2010, the FTC issued new regulations banning mortgage foreclosure rescue and loan modification services from collecting fees until homeowners have a written offer from their lender or servicer that is acceptable to them.
The FTC also works to protect consumers from illegal practices of companies in the mortgage lending industry, with emphasis on the subprime market. Our cases have target deceptive or unfair practices by entities throughout the entire mortgage cycle – advertisers of mortgages, mortgage lenders, mortgage brokers, and loan servicers. In 2011, the FTC issued new rules banning advertisers from misrepresenting mortgage terms.
News Releases:
- FTC Action Leads to Court Order Banning Final "U.S. Homeowners Relief" Defendants from Debt and Mortgage Relief Business – 4/06/2012
- FTC Legal Action Halts Alleged Mortgage Relief Scammers Who Lured Homeowners with Bogus Claims – 3/22/2012
- FTC Action Leads to Ban on Alleged Mortgage Relief Scammers Who Harmed Thousands of Consumers – 2/14/2012
- FTC Settlement Requires "U.S. Homeowners Relief" Defendants to Pay Millions, Bans Them from Debt and Mortgage Relief Business – 12/15/2011
- FTC Returns Nearly $108 Million to 450,000 Homeowners Overcharged by Countrywide for Loan Servicing Fees – 7/20/2011
- FTC Issues New Rule Strengthening Consumer Protections Against Deceptive Mortgage Advertisements – 7/19/2011
- FTC Stops Bogus Mortgage Loan Modification Business – 6/21/2011
- FTC Returns $1.5 Million to Consumers from Mortgage Lender Charged With Illegally Discriminating Against Hispanic Borrowers – 4/25/2011
- FTC Settlement Collects $2.2 Million, Bans Marketers From Mortgage Relief Business – 4/11/2011
- FTC Charges Mortgage Relief Operation with Deceiving Distressed Homeowners 3/7/2011 FTC Announces Series of Actions Against Mortgage Relief Operations Charged with Deceiving Distressed Homeowners – 11/19/2010
- Mortgage Lender Will Pay $1.5 Million to Settle FTC Charges That It Discriminated Against Hispanic Borrowers – 9/20/2010
- Mortgage Relief Marketer Will Return $2.4 Million to Consumers to Settle FTC Charges – 7/29/2010
- Deceptive Marketers Banned from Selling Mortgage Relief Services; One Defendant Ordered to Pay $11.5 Million – 7/26/2010
- FTC Settlement Orders Ban More Than A Dozen Marketers from Selling Mortgage Relief Services; Repeat Offender Ordered to Pay $11.4 Million for Contempt – 6/17/2010
- Countrywide Will Pay $108 Million for Overcharging Struggling Homeowners; Loan Servicer Inflated Fees, Mishandled Loans of Borrowers in Bankruptcy – 6/7/2010
- FTC Broadens Case Against Mortgage Relief Scheme; Charges That 'Forensic Audits' Were Unlikely to Help Homeowners – 6/1/2010
- Defendants Banned from Mortgage Foreclosure 'Rescue' Business – 3/22/2010
Business Education:
- Mortgage Lending
- Mortgage Assistance Relief Services Rule: A Compliance Guide for Business
- Mortgage Assistance Relief Services Rule: A Compliance Guide for Lawyers
Consumer Information:
- Mass Joinder Lawsuits: A New Twist on Foreclosure Rescue Scams
- Your Home
- Mortgages/Real Estate Consumer Information
- Recognizing Foreclosure Rescue Scams
- Forensic Mortgage Loan Audit Scams: A New Twist on Foreclosure Rescue Fraud
Congressional testimony:
- Financial Services and Products: The Role of the FTC in Protecting Consumers – 2/4/2010
- Foreclosure Rescue and Loan Modification Scams – 5/6/2009
- Leveraging FTC Resources To Protect Consumers of Financial Services and Promote Competition – 3/31/2009
- Consumer Credit and Debt: The Role of the Federal Trade Commission in Protecting the Public – 3/24/2009
- Consumer Protection and the Credit Crisis – 2/26/2009
