News has been plentiful over the past few years on difficulties that homeowners have experienced in seeking loan modifications under the Home Affordable Modification Program. This blog has discussed issues that homeowners had due to so-called "dual tracking" problems among the nation's mortgage lenders during the modification process. Those stories highlighted issues where the banks seemed to have one department pursuing foreclosure proceedings, while a separate division was working on a HAMP modification.
News stories of the foreclosure crisis and programs involving loan modifications are somewhat commonplace in today's economy. Unfortunately, news of those two issues has not gone unnoticed by scammers. Sources say that an epidemic of foreclosure and loan modification scams has swept across the country. A government official who monitors fraud under the Troubled Asset Relief Program says loan modification fraud has "devastating consequences" for distressed homeowners.
The Congressional Oversight Panel released its fourth housing report regarding the Obama administration's Home Affordable Modification Program (HAMP). The report indicates that the Treasury Department has failed to properly analyze the program.