Where there is big money, expect the bad guys to be lurking around - waiting for the perfect opportunity to jump on their pray. Fortunately, treasury chief Geithner agrees with this as well. The chief said the Feds have intensified Housing Scam Crackdown, with several federal agencies teaming up to cub the vice.
Housing and mortgage scams have increased in recent years. In fact, FBI has availed data showing that there has been a 400% increase in mortgage fraud cases compared to five years back.
The Obama administration has rolled out a program to help the troubled homeowners. The administration's $75 billion rescue package for home owners is expected to assist up to 9 million mortgage holders get new or refinanced loans. This has attracted a lot of interest from homeowners and fraudulent companies alike. The Housing Scam Crackdown is geared towards fighting mortgage and foreclosure scams.
"Those who would seek to prey on the most vulnerable also seek to intensify their efforts as well," Tim Geithner said. The treasury secretary warned all those who may be plotting to scam the unsuspecting public by saying "We will aggressively pursue those involved in mortgage rescue scams."
According to Washington insiders, the Department of Justice, the treasury ,the Federal Trade Commission and the Department of Housing and Urban Development will champion the Housing Scam Crackdown. State attorneys are also expected to be involved with the investigations.
Financial institutions have been at the center of Housing Scams in recent years. To that effect, the treasury's financial crimes investigative unit has prepared a checklist which financial institutions can follow to spot fishy loan activity and foreclosure rescue scams.
For the time being, the Federal Trade Commission is reviewing all the online and print advertising by mortgage foreclosure companies nationwide. To date, the Federal Trade Commission has identified 71 distinct companies who are running suspicious advertisements. The Federal Trade Commission has intensified the Housing Scam Crackdown by filing civil cases against all companies offering suspicious loan modification or foreclosure services.
"These companies are kicking people when they're down, charging enormous upfront fees and sabotaging homeowners who could be getting help for free," stated Federal Trade Commission Chairman Jon Leibowitz.
The FBI and the Justice Department will receive more resources to be used for the current Housing Scam Crackdown.
This revelation will provide more relief to millions of homeowners even as banks are more reluctant to offer loans in the current financial situation. The FBI is also investigating more than 2,100 cases related mortgage fraud and loan refinancing.
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