FTC Resources for Reporters
Mortgage Relief Scams and Mortgage Advertising and Servicing
Mortgage relief scammers falsely claim that, for a fee (typically hundreds or thousands of dollars paid up-front), they will negotiate with consumers’ mortgage lenders or servicers to obtain a loan modification or other relief to avoid delinquency or foreclosure. Many of them pretend to be affiliated with the government or government housing assistance programs. Some falsely claim to be offering legal services or “audits” of consumers’ loan paperwork to help them negotiate a resolution with their lenders. Unfortunately, these operations often fail to obtain the relief they promise, and they sometimes fail to take even minimal steps to help consumers.
Over the past few years, the FTC has filed over 35 cases against marketers of mortgage relief services, and the agency has partnered with state law enforcers to bring hundreds more. Additionally, in 2010, the FTC issued the Mortgage Assistance Relief Services (or “MARS”) Rule – which bans mortgage relief providers from collecting fees until they have obtained a loan modification or other relief for a consumer. The Rule also prohibits providers from misrepresenting material aspects of their services and requires that they disclose key information to consumers.
Mortgage advertising and servicing. The FTC also works to protect consumers from illegal practices in the mortgage lending industry, with emphasis on the subprime market. Our cases have targeted deceptive and unfair practices by entities who work with consumers throughout the mortgage cycle – including advertisers, lenders, and loan servicers. In 2011, the FTC also issued the Mortgage Acts and Practices (or “MAP”) Rule – which bans advertisers from misrepresenting mortgage terms.
News Releases:
- FTC Cracks Down on Phony Mortgage Relief Schemes – 10/09/2012
- FTC Sends Refunds to Consumers Allegedly Deceived by First Universal Lending Mortgage Loan Modification Scheme – 08/09/2012
- FTC Action Halts Dominican Mortgage Assistance Scam That Allegedly Defrauded Spanish-Speaking U.S. Homeowners of more than $2 Million – 07/30/2012
- FTC Halts Two Operations That Deceived Consumers Looking for Help with Their Debts – 07/03/2012
- FTC Wins $2.6 Million Court Judgment Against Operation That Made Exaggerated Claims for Mortgage and Foreclosure-Relief Services – 07/2/2012
- FTC Action Halts Alleged "Forensic Audit" Scam that Targeted Consumers in Danger of Losing Their Homes – 06/13/2012
- FTC Action Leads to Court Order Banning Final "U.S. Homeowners Relief" Defendants from Debt and Mortgage Relief Business – 04/06/2012
- FTC Legal Action Halts Alleged Mortgage Relief Scammers Who Lured Homeowners with Bogus Claims – 03/22/2012
- FTC Action Leads to Ban on Alleged Mortgage Relief Scammers Who Harmed Thousands of Consumers – 02/14/2012
- FTC Settlement Requires "U.S. Homeowners Relief" Defendants to Pay Millions, Bans Them from Debt and Mortgage Relief Business – 12/15/2011
- Last Remaining Defendants in "Hope Now" Scheme Settle FTC Charges; Order Puts Them Out of the Mortgage Relief Business – 11/16/2011
- At FTC’s Request, Court Shuts Down Deceptive Mortgage and Debt Relief Operation – 10/4/2011
- FTC Settlement Bans Alleged Spammer from Sending Unsolicited Text Messages – 09/29/2011
- FTC Asks Court To Halt Defendant from Impersonating Federal Agencies While Steering Consumers to Mortgage, Tax, and Debt Relief Services – 09/22/2011
- FTC Halts Mortgage Relief Schemes: Marketers Falsely Claimed to Be Affiliated with Federal Assistance Programs, Agency Alleges; Operators in One Case Required to Pay $1.8 Million – 08/25/2011
- FTC Returns Nearly $108 Million to 450,000 Homeowners Overcharged by Countrywide for Loan Servicing Fees – 07/20/2011
- FTC Issues New Rule Strengthening Consumer Protections Against Deceptive Mortgage Advertisements – 07/19/2011
- FTC Stops Bogus Mortgage Loan Modification Business: Defendants Ordered to Pay Almost $19 Million to Settle FTC Charges – 06/21/2011
- FTC Settlement Collects $2.2 Million, Bans Marketers From Mortgage Relief Business – 04/11/2011
- FTC Announces Series of Actions Against Mortgage Relief Operations Charged with Deceiving Distressed Homeowners – 11/19/2010
- Mortgage Relief Marketer Will Return $2.4 Million to Consumers to Settle FTC Charges – 07/29/2010
- Deceptive Marketers Banned from Selling Mortgage Relief Services; One Defendant Ordered to Pay $11.5 Million – 07/26/2010
- FTC Settlement Orders Ban More Than A Dozen Marketers from Selling Mortgage Relief Services; Repeat Offender Ordered to Pay $11.4 Million for Contempt – 06/17/2010
- Countrywide Will Pay $108 Million for Overcharging Struggling Homeowners; Loan Servicer Inflated Fees, Mishandled Loans of Borrowers in Bankruptcy – 06/7/2010
- Defendants Banned from Mortgage Foreclosure 'Rescue' Business – 03/22/2010
- FTC Submits Comments on Proposed Guidance to Help Consumers Avoid Reverse Mortgage Deception – 03/19/2010
- Federal and State Agencies Target Mortgage Relief Scams: FTC Leads “Operation Stolen Hope” to Stop Fraud and Help Troubled Homeowners – 11/24/2009
- FTC Announces New Enforcement Actions In Continuing Crackdown On Mortgage Relief Services Scams – 09/17/2009
- FTC Action Stops Foreclosure 'Rescue' Operation – 08/24/2009
- Federal and State Agencies Target Mortgage Foreclosure Rescue and Loan Modification Scams: FTC Leads “Operation Loan Lies” to Stop Fraud and Help Distressed Homeowners – 07/15/2009
- FTC Charges Seven Credit Repair Companies with Deceiving Consumers Throughout the U.S. – 03/17/2009
- Mortgage Foreclosure "Rescue" Operators Settle with FTC – 01/8/2009
- Three Home Loan Advertisers Settle FTC Charges; Failed to Disclose Key Loan Terms in Ads – 01/8/2009
- Bear Stearns and EMC Mortgage to Pay $28 Million to Settle FTC Charges of Unlawful Mortgage Servicing and Debt Collection Practices – 09/9/2008
- FTC Warns Mortgage Advertisers and Media That Ads May Be Deceptive – 09/11/2007
- FTC, Subprime Mortgage Servicer Agree to Modified Settlement – 08/2/2007
Business Education:
- Mortgage Lending
- Mortgage Assistance Relief Services Rule: A Compliance Guide for Business
- Mortgage Assistance Relief Services Rule: A Compliance Guide for Lawyers
Consumer Information:
- Mass Joinder Lawsuits: A New Twist on Foreclosure Rescue Scams
- Your Home
- Mortgages/Real Estate Consumer Information
- Recognizing Foreclosure Rescue Scams
- Forensic Mortgage Loan Audit Scams: A New Twist on Foreclosure Rescue Fraud
Congressional testimony:
- Financial Services and Products: The Role of the FTC in Protecting Consumers – 02/4/2010
- Foreclosure Rescue and Loan Modification Scams – 05/6/2009
- Leveraging FTC Resources To Protect Consumers of Financial Services and Promote Competition – 03/31/2009
- Consumer Credit and Debt: The Role of the Federal Trade Commission in Protecting the Public – 03/24/2009
- Consumer Protection and the Credit Crisis – 02/26/2009
- Improving Consumer Protections In Subprime Lending – 04/29/2008
- Foreclosure Rescue Fraud – 02/13/2008