Moore, Koster, Six Discuss Efforts to Prevent Mortgage Fraud
Congress, Attorneys General, FBI, HUD working together to protect consumers
During a press conference Monday, Congressman Dennis Moore (KS-03), Missouri Attorney General Chris Koster and Kansas Attorney General Steve Six gathered to discuss the recent rise in fraudulent mortgage modification schemes and information that consumers should know to protect themselves from these types of scams.
"There are a number of great people and resources out there to help homeowners work with their lenders so they can meet their mortgage obligations," Moore said. "As a former District Attorney, however, I know all too well that there are also people out there who will exploit weakness and prey on the fear of others. We often think of robberies taking place with a knife or a gun, but these thieves instead come with a smile, a handshake and a ballpoint pen."
Given the recent increase in mortgage related scams and fraud reported to Attorneys General in Kansas and Missouri, both offices have focused their efforts on protecting consumers from these deceptive practices, now and in the future.
Six spoke about his office's efforts to raise consumer awareness, saying: "The Kansas Attorney General's Office has stepped up efforts to investigate and prosecute fraudulent companies, educate consumers about their rights as homeowners and help families stay in their homes."
"This Attorney General's office will have zero tolerance for any mortgage broker or refinancing lender that uses deception to lure consumers into doing business with them," said Koster, highlighting his office's commitment to prosecute those who use deceptive and fraudulent practices.
Representatives from the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development were on hand to share the work their agencies are doing to prevent mortgage foreclosure fraud.
"The Financial Services Committee is also working to address this issue with some comprehensive reforms to improve the mortgage process," said Congressman Emanuel Cleaver, II (MO-05), in a statement. Cleaver, who was scheduled to participate but unable to attend, continued: "In the meantime, Congressman Moore and I are working to ensure that local, state and federal law enforcement agencies, like the state Attorneys General and the FBI represented here today, have all the resources and tools they need to prosecute these horrible thieves, swindlers and snake-oil salesmen."
Moore and Cleaver are both cosponsors of H.R. 1748, the Fight Fraud Act, which would strengthen the accountability standards for financial, mortgage lending and securities agents and institutions, and; provide additional funds for the Department of Justice, FBI, HUD's Inspector General, and other federal agencies so they can hire the investigators they need to examine and prosecute fraudulent activity.
Moore concluded with a call for increased vigilance: "Everyone should be on high alert for these fraudulent schemes and contact local law enforcement immediately of any suspicious offers to help for a fee. It is imperative that we protect ourselves and our neighbors and put those people preying on the victims of this housing crisis behind bars!"