Other LanguagesIn part because of the work of state attorneys general in cracking down on fraud in the mortgage industry, more mortgage providers are offering loan modification programs for their customers to help them keep their homes. But we’re worried that some businesses that claim to help are mostly looking to make a buck.
The Department of Financial Institutions also has concerns and issued this warning to consumers today.
“DFI is concerned that homeowners in desperate situations may pay substantial fees for loan modification services and not take advantage of the HUD-approved counseling services offered for free by numerous non-profits,” DFI Director Scott Jarvis said. “The non-profit providers can often negotiate better deals because they have formed working relationships with many of the lenders.”
Organizations that offer loan modification services services must be licensed as loan originators, mortgage brokers, or consumer loan companies. Verify a license at www.dfi.wa.gov or by calling 1-877-RING-DFI.
On a related note, the Attorney General's Office has seen a spike in inquiries about private lawyers who offer to sue your lender to force a loan modification. Again, if you haven't already done so, you should contact first contact your lender and a housing counselor to explore your options.