National Campaign Empowers Homeowners to Combat Loan Modification Scams

A network of local, state and national partners announces new resources for
at-risk homeowners to recognize scams, report them and find legitimate help

LOS ANGELES, Oct. 26 /PRNewswire/ -- Today in Los Angeles, a partnership of
local, state and national government agencies, nonprofit organizations and
financial institutions gathered at City Hall to launch a national public
education campaign designed to help homeowners protect themselves against loan
modification scams, find trusted help and report illegal activity to
authorities. This was the first of several kickoff events scheduled to
announce the "Loan Modification Scam Alert" campaign rollout in major cities
across the country.

(Logo: http://www.newscom.com/cgi-bin/prnh/20091026/CG98307LOGO )

The national foreclosure rate has reached an all-time high of 7.97 percent,
and millions more foreclosures are expected in coming years. "As the
foreclosure rate grows, more and more homeowners are being deceived by scam
artists who prey on their fears," said Eileen Fitzgerald, Chief Operating
Officer of NeighborWorks America. "This campaign is based on the belief that
knowledge is the best defense, which is why the campaign equips homeowners
with the tools they need to minimize their risk and stop scammers in their
tracks."

Los Angeles is one of several metropolitan areas in California to consistently
rank among cities with the highest foreclosure rates. It has the highest
number of homes in foreclosure in the nation. "Too many residents in Los
Angeles, like homeowners nationwide, are losing thousands of dollars and their
homes to scam artists who make big promises and then do little or nothing to
help them save their homes," said Los Angeles Mayor Antonio Villaraigosa.
"Anyone can be a victim and the people of Los Angeles need to know what
resources are available to them. They need to know that legal aid groups,
financial institutions, and HUD-certified counselors are offering free
services to anyone seeking help."

In April, Mayor Villaraigosa announced a path breaking city ordinance to
increase protections for Angelenos against fraudulent mortgage loan
modifications. This measure - the first of its kind in the United States -
fills a critical gap in the regulation of mortgage consultants and grants
rights to homeowners at risk of foreclosure. The ordinance protects
homeowners, imposes harsher penalties on scam artists, and informs Angelenos
of their rights as residents of Los Angeles.

In addition to remarks from Mayor Villaraigosa and Ms. Fitzgerald of
NeighborWorks, the kickoff event featured representatives from LA City
Council, the local faith-based community, the Federal Trade Commission and Los
Angeles Neighborhood Housing Services, Inc. Also present were local
homeowners who shared their personal experiences with loan modification scams
to inform other homeowners in their community about this activity.

NeighborWorks America will coordinate the nationwide effort through its 235
community-based affiliates and other local, state and national partner
organizations, including the Department of Housing and Urban Development
(HUD), the Federal Trade Commission, the U.S. Department of the Treasury,
Fannie Mae, Freddie Mac and the Lawyers' Committee for Civil Rights Under Law.

Together, the partners aim to reach thousands of distressed homeowners in
hundreds of communities at high risk for fraud activity. The campaign will
target all audiences, but its resources are focused sharpest on those groups
that have already seen high levels of scam activity, including seniors,
Hispanics, African Americans and Asian Americans.

As part of the campaign, information, resources and reporting capabilities are
now available around the clock at www.LoanScamAlert.org and by calling
1-888-995-HOPE (4673). Community groups may also visit the Web site to access
campaign materials available for download and distribution in their area.

Through real-life scam stories, collateral materials, print advertising, local
radio PSAs, events, word of mouth and social media activity, the campaign will
educate the public about the warning signs of a loan modification scam.
"Borrowers must avoid any individual or firm that asks for a fee in advance,
guarantees a loan modification or tells you to pay them instead of paying the
mortgage. Only a lender can guarantee a loan modification and they do not
charge," said Lori Gay, president and chief executive officer of campaign
partner Los Angeles Neighborhood Housing Services, Inc., one of the 235
organizations in the NeighborWorks network.

Homeowners are also urged to report scam activity at once to the proper
authorities through the campaign Web site and hotline. "We want to stress how
crucial it is for people to learn the signs of a scam and quickly report any
encounter that just doesn't ring true," said Tom Syta, assistant director of
the FTC's Western Region. "Scammers are out there trying to take advantage of
people in a tough spot. The campaign is making it easier for homeowners in
distress to fight back, and help us shut scam artists down."

The partnership has designated November as "National Loan Modification Scam
Awareness Month" and will promote a variety of special events and initiatives
throughout the month. In the coming weeks, the campaign will also travel to
Miami (Oct. 29) and Columbus (mid-November). For more information about the
campaign visit www.LoanScamAlert.org.

A Webcast of the Los Angeles event will be available on-demand anytime after
noon PST on Oct. 26 at:
http://media.xfactorcom.com/loanmodificationscamalert/20091026/.

About NeighborWorks America
NeighborWorks America is a national nonprofit organization created by Congress
to provide financial support, technical assistance and training for
community-based revitalization efforts. NeighborWorks includes a national
network of 235 community-based organizations in 50 states, which strives to
create healthy communities through the work of thousands of residents,
business people, government officials and other partners.

SOURCE NeighborWorks America

Amanda Sobanet, +1-202-828-5077, office, +1-202-246-0439, cell,
amanda.sobanet@fleishman.com, or Jason Werden, +1-202-828-9726, office,
+1-301-346-7523, cell, jason.werden@fleishman.com, both of Fleishman-Hillard,
for NeighborWorks America