Saying that there are too many firms taking advantage of financially vulnerable individuals, the Obama administration today announced it would redouble its efforts to combat fraudulent practices among companies offering to help consumers avoid foreclosure.
The initiative will include additional criminal and civil prosecutions and an effort to alert financial institutions about fraudulent schemes and suspicious companies.
The program will be a joint effort of the Housing and Urban Development, Justice, and Treasury Departments, the Federal Trade Commission and the attorneys general of the states.
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The Treasury Department is alerting financial institutions of emerging schemes in this area. The Justice Department will increase prosecutions both against companies that are targeting practitioners of loan modification or foreclosure rescue scams and against financial institutions that practice discrimination in their lending practice.
The Department of Housing and Urban Development is doing a widespread education effort to alert consumers about how to be on the lookout for fraudulent practices. The Federal Trade Commission has issued five enforcement actions against companies and sent out 71 warning letters.
More then 150 enforcement actions have already been brought by state officials.
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