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05/26/10

New Financial Regulations may do little to Stop Loan Scams


According to The Grio, a leading online publication for African American news, the new Consumer Financial Protection Bureau will have little impact over mortgage rescue scams. While the new agency will have the ability to enforce and regulate new rules concerning mortgage lenders, it will have little influence over scam artists who target communities of color and the elderly.

The Grio urges homeowners to "speak up" and use resources like www.PreventLoanScams.org  to increase "our ability to defend our communities from abuses." The new Consumer Financial Protection Bureau cannot stop loan scams alone. Working with enforcement agencies and certified housing counselors can help to prevent more homeowners from being scammed.

Communities of color have been hit especially hard by the foreclosure crisis.  As a result, minorities are being targeted by loan modification scammers at alarming rates.  Educating these communities about the issue and how to report a scam is vital to eradicating this crisis.  The Lawyers' Committee for Civil Rights Under Law and the Loan Modification Scam Prevention Network will continue to work with enforcement officials to put these scammers out of business.  Articles like the one in The Grio are important to our success.

For more information please read the Grio article, "Financial reform may do little to squash mortgage scams"