National Mortgage Settlement Scams

Consumer Alert

BILL SCHUETTE

ATTORNEY GENERAL

The Attorney General provides Consumer Alerts to inform the public of unfair, misleading, or deceptive business practices, and to provide information and guidance on other issues of concern.  Consumer alerts are not legal advice, legal authority, or a binding legal opinion from the Department of Attorney General.

NATIONAL MORTGAGE SETTLEMENT SCAMS

Don't Pay to get Relief under the Settlement

Michigan Attorney General Bill Schuette and other participating state Attorneys General entered into a settlement with the five leading bank mortgage servicers: Bank of America, Citi, Chase, Wells Fargo, and GMAC/Ally.  Under the settlement, the servicers will spend at least $19 billion to provide different forms of consumer relief, including principal balance reductions, interest rate reductions, short sales, and deeds in lieu of foreclosure.

Borrowers will not immediately know if they are eligible for relief. 

• A settlement administrator has been selected to manage the claims process for cash payments.  Initial claims notices will start being mailed in September, 2012.

• Mortgage servicers have started identifying homeowners eligible for the immediate cash payments, principal reductions, and refinancing.  Those eligible will be contacted by their servicer. 

• This settlement will be executed over the next three years.

Scammers are already trying to use the national mortgage settlement to swindle consumers. The attorneys general have received reports of thieves calling borrowers claiming to be one of the major banks involved in this settlement and offering a cash payment to consumers if they simply provide the bank routing number to access their bank account.  Other scams have offered to get people money under the settlement quickly if the consumer pays an up-front fee. 

Remember these important points if you are contacted:

• DO NOT PROVIDE PERSONAL OR FINANCIAL INFORMATION TO SOMEONE WHO CALLS OR E-MAILS YOU.  Regardless of whom they claim to be, people who call or e-mail you seeking personal or financial information should be treated as potential thieves who may be trying to steal your identity.  Do NOT provide people who call or e-mail you with any personal information.

• HELP IS FREE.  Don't pay anyone for this assistance.

• The banks will be contacting consumers who are eligible for relief. To be sure it's really the bank that is calling you, consider the following

1.   Does the caller identify themselves as representing your loan servicer? Or do they ask you to provide the name of your loan servicer? If they ask you for the name of your servicer, they may be a scammer.

2.   Does the caller offer to provide your personal information to assist you in identifying your account? Or do they ask you to provide that? If the caller is from your loan servicer, they will be able to tell YOU your personal information because they will have it. You should never provide your personal information (including bank account numbers, social security numbers, etc.) to an unsolicited caller.

3.   Does the caller offer to speed your settlement relief for a fee? They are definitely a scammer! Neither the banks nor Attorney General Schuette will charge a fee to speed up payments or other relief.

4.    If you think the caller may be legitimate, ask for their contact information, tell them you are going to call your bank's hotline and confirm, then call them back. Chances are if they're a scammer, they won't want you to check on them and they won't provide their contact information. 

5.    If you want to check with the bank, the contact information for the 5 participating banks is:

§  Ally/GMAC: 800-766-4622

§  Bank of America: 877-488-7814 (available M-F 7am - 9pm CT and Saturdays  8am - 5pm CT)

§  Citi: 866-272-4749

§  JPMorgan Chase: 866-372-6901

§  Wells Fargo: 800-288-3212 (Available M-F 7 a.m. to 7 p.m. CT)

If you are a Michigan resident and are solicited by someone offering to help you get relief under this settlement for a fee, go to our website at Michigan.gov/ag, click on the "Complaints" tab, and file a complaint.

Additional information about the National Mortgage Settlement is available on our website ? www.michigan.gov/mortgagesettlement  and at www.nationalmortgagesettlement.com.