Mortgage settlement scams hit Virginia

By: Times-Dispatch Staff | From staff reports
Published: February 17, 2012

Virginians need to be cautious about scam phone calls or emails that have surfaced since the recent $25 billion mortgage settlement among 49 state attorneys general and the federal government with five of the nation's largest lenders.

Virginia Attorney General Ken Cuccinelli said Thursday that there have been numerous reports of Virginia residents receiving scam phone calls in which the caller claims to possess a list of consumers who are eligible for money from the mortgage settlement.

The caller requests the consumer's bank account number and says he will directly deposit settlement money into the consumer's bank account.

It is unclear if these scammers are posing as bank associates or as a third-party company claiming to be working with the settlement.

Mortgage borrowers should contact their mortgage servicers directly to obtain more information about specific loan modification programs and whether they qualify under terms of this settlement.

"I cannot stress this enough: Never give out your bank account information — or any personal information for that matter — to someone who calls you," Cuccinelli said in a statement.

"Instead, call a known number for your financial institution, so you are sure you are reaching a legitimate contact."

The toll-free numbers for the settling servicers are Bank of America, (877) 488-7814; Citigroup, (866) 272-4749; JPMorgan Chase, (866) 372-6901; GMAC, (800) 766-4622; and Wells Fargo, (800) 288-3212.

Those who have had multiple changes of address and are worried that the settlement administrator will not be able to locate them should go to ag.virginia.gov and click on "Mortgage Servicing Settlement Agreement" under "Hot Topics" and complete the "Address Update Form." The attorney general's office will collect the information and forward it to the settlement administrator.

The settlement applies to people in Virginia who went through improper or fraudulent foreclosure from Jan. 1, 2008, through Dec. 31, 2011, and whose loans were serviced immediately prior to foreclosure by one of the settling servicers.

For details on the proposed agreement, go to NationalMortgageSettlement.com.