A Warning to Investors: Mortgage Fraud and Investment Schemes
BBB Warns Homeowners: 'Mass Joinder' Lawsuit Mailings May Be Latest Advance Fee Mortgage Modification Scheme
The Better Business Bureau (BBB) warns homeowners to steer clear of mailings asking them to join national "mass joinder" lawsuits to force their mortgage companies to cut their loan payments. The mailings are a new twist on schemes to obtain up-front payments of $5,000 or more from homeowners struggling to pay their mortgages.
FINRA Warns Senior Investors About Reversing Fortunes With Reverse Mortgages
The Financial Industry Regulatory Authority (FINRA) issued an Investor Alert urging homeowners over the age of 60 to carefully weigh all of their options before tapping into their home equity through reverse mortgages to obtain additional income for their retirement years. A reverse mortgage is an interest-bearing loan secured by the equity
FTC Returns Nearly $108 Million to 450,000 Homeowners Overcharged by Countrywide for Loan Servicing Fees
The Federal Trade Commission is mailing 450,177 refund checks worth almost $108 million to homeowners who were allegedly overcharged by Countrywide Home Loans, Inc. As part of the FTC's efforts to protect financially distressed homeowners, the FTC reached a settlement with Countrywide last year over allegations that the company collected excessive fees from borrowers who were struggling to keep their homes.
Mortgage Fraud Scam: 'Dream Homes' Turns into Nightmare
The company had all the trappings of success - its top officials lived lavish lifestyles, kept a fleet of chauffeur-driven cars, and donated generously to charities. And it used slick marketing to sell its "Dream Homes Program," which promised to pay homeowners' mortgages in return for an up-front fee that would be invested in profitable business ventures. But the dream turned into a $70 million nightmare for more than a thousand investors - among the latest victims of mortgage fraud.