Local, state and national government agencies, nonprofits and financial institutions have formed an alliance that aims to help homeowners protect themselves from loan modification fraud.
The "Loan Modification Scam Alert" campaign in Los Angeles this week is the first of a number of other events that will be announced in major cities around the country. Partners include some of the country's largest organizations. Neighborhood Reinvestment Corp., a nonprofit that does business as NeigborWorks America, will coordinate the efforts with partner organizations such as the Department of Housing and Urban Development, the Federal Trade Commission, the Treasury Department, Fannie Mae, Freddie Mac and the Lawyers' Committee for Civil Rights Under Law.
"More and more homeowners are being deceived by scam artists who prey on their fears," said Eileen Fitzgerald, NeighborWorks' chief operating officer. "Knowledge is the best defense."