BOISE – As consumers look for ways to save in the face of increasing living expenses, they may be more vulnerable to scams. Home loan modification can be an avenue for some seeking to spend less on a monthly mortgage payments, however the Department of Finance is cautioning Idahoans to be aware of re-emerging mortgage loan modification scams.
At least two Idaho consumers, both of whom have filed complaints with the department, claim to have lost several thousand dollars as a result of being solicited by and contracting with unlicensed mortgage loan modification companies.
In December 2021, the department issued a Cease-and-Desist order against American Integrity Partners, Inc. for unlicensed mortgage loan modification activities, including charging a fee of $3,000 for false promises of securing more desirable loan terms. Homeowners should know how to recognize a fraudulent loan modification offer. Red flags of a fraudulent loan modification offer may include but are not limited to:
Unlicensed people or companies soliciting a consumer
It is not common for a mortgage servicer to contact a borrower and proactively offer assistance. Individuals offering these services are required to be licensed with the department. Licensed companies are listed on the department’s website at https://www.finance.idaho.gov.
Making a demand for payment…
