Task force set up to investigate mortgage scams

WASHINGTON - The U.S. Treasury Department announced on Thursday that it will be part of a newly formed task force aimed at shutting down mortgage scams masquerading as government help plans.

Treasury, together with the Office of the Special Inspector general for the Troubled Asset Relief Program (SIGTARP) and Consumer Financial Protection Bureau (CFPB) will try to head off some obvious schemes aimed at struggling homeowners.

Among other activities, they are to investigate offers by companies charging a fee in exchange for false promises to lower a homeowner's debt or monthly payments through the foreclosure program called Home Affordable Modification Program, or HAMP.

Treasury said a "fraud alert" will be provided to homeowners eligible for mortgage modifications that will advise how to contact the task force if a scam is suspected.

Government efforts to provide relief for homeowners facing the risk of foreclosure have faced substantial criticism and the housing industry remains under heavy pressure stemming from falling prices and high rates of unemployment.

The task force announcement came hours before Treasury Secretary Timothy Geithner was scheduled to briefly speak with reporters at the CFPB's offices on Thursday afternoon.

(Reporting by Glenn Somerville, editing by Diane Craft)