Financial reform may do little to squash mortgage scams
Posted on May 25, 2010
By Monique Morris, NAACP Vice President for Economic Programs
Originally Posted at TheGrio.Com
While Congress was pushing through the nation’s toughest financial regulatory reform bill in decades last week, nine men were charged with nearly 100 counts of scamming more than $2 million from up-front fees charged to families across the nation.
Though the watchdog component of the new bill, the Consumer Financial Protection Bureau, will have an ability to develop and enforce new rules governing mortgage lending, it may end up doing little to protect consumers from mortgage-related scams, particularly those aimed at foreclosure rescue.
In 2009, 2.8 million foreclosure notice were delivered to American property owners, with one million properties in the pipeline and five million properties in serious delinquency. According to RealtyTrac, one in 389 housing units received a foreclosure filing in April 2010, while many lending institutions streamlined processes to work through backlogs, resulting the repossession of a record 92,432 properties in April.