BBB Warns Homeowners: Changes to Mortgage Rules Bring Out Scams

December 01, 2011

Starting today, some homeowners who are “under water” with their mortgages can refinance under the Home Affordable Refinance Program (HARP), but the Better Business Bureau is warning consumers that banks and mortgage companies aren’t the only ones gearing up for the rush of applications.

  • Deal directly with your lender first, and never make payments to anyone other than your lender.
  • Don’t pay upfront fees to anyone who promises to provide counseling, takes care of the paperwork for you, or stops the foreclosure process.
  • Be wary of anyone who tells you not to contact your lender, a lawyer or a credit counselor, or who asks for payment by cashier’s check or wire transfer.
  • Never sign over your deed to anyone, or allow yourself to be pressured into signing something you don’t understand.
  • Be especially careful of look-alike and sound-alike websites.
  • Find out if you qualify here or by calling the Homeowner’s HOPE Hotline at 1-888-995-HOPE (4673) to speak to a HUD-approved housing counselor for free (assistance is available in English and Spanish, and in other languages by appointment).
  • Report scams to BBB at

The changes to the HARP program were announced by President Obama in October to allow homeowners to refinance at lower interest rates, even if their home is currently worth less than their mortgage. The new HARP rules apply to homeowners who are current on their payments and whose loans are backed by either FannieMae or FreddieMac. Some lenders will begin accepting applications as early as today, although many will take a few weeks or even a few months to roll out the program. More than one million borrowers are expected to apply for the program, according to the Federal Housing Finance Agency, which oversees the two major mortgage lending programs.

Check out businesses and charities before you buy, donate or invest at Additional mortgage and credit-related tips are available at

If you have credit problems, find a credit counseling agency in your area by calling 800-388-2227 (en Espanol 800-682-9832).

About BBB
As the leader in advancing marketplace trust, Better Business Bureau is an unbiased non-profit organization that sets and upholds high standards for fair and honest business behavior. Every year, more than 87 million consumers rely on BBB.