SIGTARP, CFPB, Treasury Issue Fraud Alert for Servicemembers

The ""Office of the Special Inspector General for the Troubled Asset Relief Program"":http://www.sigtarp.gov/Pages/home.aspx (SIGTARP), along with the ""Consumer Financial Protection Bureau"":http://www.consumerfinance.gov/ (CFPB) and the ""Treasury"":http://www.treasury.gov/Pages/default.aspx issued a fraud alert Thursday warning the armed services community about scams targeting homeowners seeking mortgage assistance.

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The alert specifically warned about scammers attempting to exploit the Home Affordable Modification Program (HAMP), which can provide mortgage relief for struggling homeowners through modified payments.

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One concern is that some people are fraudulently representing their services by advertising high success rates in getting modifications or by asking for payments upfront in exchange for a mortgage modification. Servicemembers were reminded that free help is always available through the U.S. Department of Housing and Urban Development (HUD).

SIGTARP, CFPB, and Treasury formed a taskforce in December 2011 to investigate and put an end to HAMP mortgage modification scams and to provide education and awareness to homeowners.

""Members of the armed services community often face unique financial challenges and are at particular risk for this type of scam,"" said Special Inspector General Christy Romero. ""We want to empower servicemembers and their families with information so that they can easily recognize and avoid these scams and also provide them with resources on where to turn for additional information and assistance. SIGTARP will continue to work with the CFPB and Treasury and our other partners in law enforcement to shut down these scams and to ensure that their perpetrators are held accountable for their crimes.""

The consumer fraud alert can be found ""at this link"":http://www.sigtarp.gov/documents/consumer_fraud_alert.pdf. A list of resources for service members can be found ""here"":http://www.sigtarp.gov/documents/military_mortgage_fraud_alert.pdf.