Thursday, February 22, 2007

Homeowners Are the Target of Fraudulent Mortgage Offers

As a homeowner's your clients and customers are probably received tons of offers trying to tempt them to restructure your finances utilizing unrealistic programs that do not fit in with their long−term financial goals.

In fact, the Federal Reserve Board has just released a warning about a recent wave of deceptive promotional offers aimed at homeowners.

Through direct mail advertising, consumers are being offered special "cash grant or equity disbursement" programs which claim to be linked to the Community Reinvestment Act (CRA) and, in some cases, even endorsed by the Federal Reserve.

The Federal Reserve Board cautions homeowners that "no such federal programs exist". In fact, the Federal Reserve Board does not "endorse or sponsor" any mortgage programs, and the CRA does not "entitle individuals to any grants or loans".

Enacted in 1977, the CRA is a federal law designed to address unfair "redlining" practices in low−income neighborhoods, encouraging financial institutions to address the financial needs of the community as a whole.

This year, as millions of loans reset and payments increase, homeowners can expect more and more of these unrealistic and even bogus offers in the months to come.

Your Trusted Advisor For Life!
Jeffrey Stanton

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