In conjunction with National Consumer Protection Week (NCPW),
Nevada Attorney General Catherine Cortez Masto announced the five most common
complaints addressed by her Mortgage Fraud Unit (MFU). The MFU investigates and
prosecutes violations of mortgage fraud under NRS 205.372, as well as
foreclosure rescue fraud, foreclosure fraud and any and all other theft related
crimes arising out of mortgage related transactions.
The top five most
common mortgage fraud consumer complaints by category in 2012 are:
1.
Loan Modification and Other Loss Mitigation Issues –
Subject offers to save someone’s home through various methods such as modifying
the loan or reducing the principal.
2.
Documentation Problems – Robo-signing, forged
documents, unable to produce note, homes foreclosed through questionable
documents, complainant contests foreclosure based on a lack of the original
note.
3.
Customer Service Issues – Lender or servicer is
unwilling or is being difficult about working with the homeowner on a loan
modification.
4.
Falsified Loan Documents – Loan documents
misrepresented borrowers’ true income/debt.
5.
Miscellaneous – Subject attempts to purchase
home through fraud, subject sells or rents home when not the true owner,
fraudulent lien, subject offers to act as a mediator for someone attempting to
acquire loan.
“I encourage Nevadans to seek mortgage assistance through Home
Again Nevada,” Masto said. “In general, there is no reason to hire a for-profit
loan modification company. Homeowners can directly negotiate loan modifications
with Home Again Nevada who will connect you with a trained Housing and Urban
Development certified counselor for free. Contacting Home Again Nevada will
help people from falling victim to scams.”
The AG’s office received 12,476 complaints in 2012. Of those,
788 were mortgage fraud consumer complaints from the following counties:
Carson, Clark, Douglas, Elko,
Esmeralda, Lyon, Nye, Washoe
and White Pine. In resolving those 2012 MFU complaints, $442,745 was ordered to
be put back into the hands of consumers. Since the MFU started in 2010,
$1,470,167 worth of restitution has been ordered.