MORTGAGE FRAUD VICTIMS PREVENTION AND ASSISTANCE

Transcription

1 MORTGAGE FRAUD VICTIMS PREVENTION AND ASSISTANCE Chantez Bailey (202)

2 NCPC - Protecting What Matters Most Our Mission Drives Our Work: To be the nation s leader in helping people keep themselves, their families, and their communities safe from crime. 2

3 About the NCPC NCPC ENVISIONS A SAFER AND MORE CARING NATION 3

4 NCPC STRATEGIC GOALS Protect children and youth Partner with government and law enforcement to prevent crime Promote crime prevention and personal safety basics Respond to emerging crime trends 4

5 Mortgage Fraud Prevention The Mortgage Asset Research Institute calls mortgage fraud one of the fastest growing financial crimes in the history of the United States. Source: Understanding Mortgage Fraud, Mortgage Asset Research Institute, available at 5

6 Mortgage Fraud NCPC Findings Only 51% of respondents said they worked with a licensed real estate professional or lawyer. While only 38% validated a license when purchasing a home. Percent of those who researched thoroughly: Mortgage company/lender 24% Realtor 13% Loan Officer 8% Attorney/Lawyer 5% Appraiser 4% Home Inspector 4% Title Company 3% 6

7 Mortgage Fraud NCPC Findings One in five consumers (20%) felt they were being scammed during the home buying process. About half of those scammed claim they were aware of scams and schemes prior to starting the process. 7

8 Mortgage Fraud NCPC Findings Only 61% say they always read contracts carefully, including the fine print, before signing 46% say they are cautious and suspicious 27% are both trusting and cautious 24% say they are trusting and friendly when it comes to the way they deal with people they don t know 8

9 Mortgage Scams NCPC Findings 24% agree that they quickly read through contracts so they can sign on the bottom line and be done with the process 20% agree that they will occasionally over look warning signs or concerns about sales facts if they think it will benefit them in the end 11% agree that they fall for sales messages that sound too good to be true 9

10 Mortgage Fraud NCPC Findings What is happening in the marketplace? 19% said promises were not in written form 16% said promises were made verbally 12% were offered government approved or official government loan modification programs 11% were asked to wire money or write a check before contracts were signed 10% claim that undue pressures/tactics were used to make them act immediately on an offer 10

11 Mortgage Fraud NCPC Findings 9% were asked to pay a fee in advance to work with their lender to modify/ refinance/reinstate their mortgage 7% were required to allow their lender to have direct access to their bank account or credit card for payment purposes 7% were guaranteed by someone that they could stop a foreclosure or modify a loan 11

12 MORTGAGE FRAUD TOOLKIT WHO IS IT FOR? Mortgage Fraud Victim Service Providers Attorneys Law Enforcement Agencies Victim Service Advocates 12

13 NCPC RESOURCES FOR MORTGAGE FRAUD TV Public Service Announcements Radio Public Service Announcements Audio Podcasts Webinar 1-day Virtual Conference Online Video (News Segment) Mortgage Fraud Toolkit for Victim Service Advocates 13

14 MORTGAGE FRAUD TOOLKIT WHAT WILL THE KIT INCLUDE? Useful tips and publications to share with mortgage fraud victims List of credible organizations to refer mortgage fraud victims Step-by-step guide to assist mortgage fraud victims through recovery process List of NCPC Training Sessions Available 14

15 RADIO PSA SCRIPTS 60-second scripts 15

16 ALL SHAPES AND SIZES AVO: It begins with a knock on the door (SFX follow ), a phone call, a flier in the mail, a misleading website or ... Loan modification scams. They come in all shapes and sizes calling themselves loan rescue firms counseling services mortgage consultants. Sometimes posing as a legitimate mortgage company all willing to help you modify your loan and get caught up with your payments. But beware. These are highly trained con artists. They often know who you are, where you live, and because it s public record if you are on the brink of foreclosure. You re not alone however. The and U.S. Department of Justice have partnered to help homeowners identify, and steer clear of, these foreclosure scam artists McGruff: McGruff the Crime Dog here. It only takes a little of your time to become informed. And that s the first step in order to safeguard your finances and protect your home. AVO: Learn more at: www dot NCPC dot org. This message is brought to you by the National Crime Prevention Council and U.S. Department of Justice. We don t have intelligence that supports the knock on the door. 16

17 (Father, mother and son have slight Latino accent) HOMEWORK Father: (light knocking on door) Juan Carlos? You getting ready for bed? Juan: (slightly muffled, behind door) In a minute dad I m studying. Father: OK son. (SFX: kitchen / dishes) Mother: Well it s good he s doing his homework. Father: Hmm. Something we should be doing. Mother: What do you mean? Father: Well you know that guy who called before dinner a few days ago from a so-called mortgage rescue company? Mother: Yea? Father: Well he mailed us all of these papers to sign. (SFX papers) Mother: And? Father: Well, I heard that many of these people who claim they can save homes from foreclosure are not legitimate, and that we should do our homework not rush into this. Look we re behind in our payments, but the last thing we need is to be scammed. McGruff: A wise decision beware of companies that promise to save your home from foreclosure. McGruff the Crime Dog here. It only takes a little of your time to become informed. And that s the first step, in order to safeguard your finances and protect your home. AVO: To learn more, visit www dot NCPC dot org. That s NCPC dot org. This message is brought to you by the and U.S. Department of Justice. 17

18 (William Tell Overture, Finale: first 13 seconds only) * AVO: Here they come! And just in the nick of time! TO THE RESCUE Mortgage rescue firms brokers consultants and lenders. And they re all here, to help you get caught up on payments. Making promises to get you a loan modification (cymbal crash) (BIG VOICE WITH REVERB / ECHO) SAVE YOUR HOME! (Final hit and hold of resolve of opening music intro to silence) (Normal voice / no music) Homeowners if you re struggling, missing payments, receiving delinquency notices from your mortgage company, and are on the brink of foreclosure please do NOT be fooled by foreclosure scam artists. (New music contemporary) The and U.S. Department of Justice want you to be informed. These loan rescue firms don t loan money, rescue anyone or save homes from foreclosure. Sadly, many Americans are losing their homes because of these scam artists. McGruff: McGruff the Crime Dog here. It only takes a little of your time to become informed. And that s the first step, in order to safeguard your finances and protect your home. AVO: Learn more by visiting www dot NCPC dot org. That s NCPC dot org. Brought to you by the National Crime Prevention Council and U.S. Department of Justice. 18

19 OUR DREAM (African American couple) (Music up. Simple pulse) Wife: What can I say? We believed him. Husband: We believed him, because we were desperate and afraid. Wife: So afraid and ashamed of falling behind in our house payments that we we never called our mortgage company to find out about our options and see if we could work things out. Husband: Instead we trusted the loan Wife: loan rescue firm 19

20 OUR DREAM Husband: and believed that they would help us get caught up and work things out with the bank Wife: So. we signed papers without seeking advice and, well Husband: we were scammed. In the worst way possible. Wife: We sent them our money and lost everything we had worked for. Husband: And with it (MUSIC STOPS ABRUPTLY) our dream of owning a home. McGruff: Don t let this happen to you. McGruff the crime dog here. It only takes a little of your time to become informed. And that s the first step, in order to safeguard your finances and protect your home. AVO: To learn more, visit www dot NCPC dot org. That s NCPC dot org. Brought to you by the and U.S. Department of Justice. 20

21 Questions and Answers 21

22 For more information 2001 Jefferson Davis Highway Suite 901 Arlington, VA fax Website: 22