Consumer Tip

PRESS  RELEASE: Missouri’s Community Banks Offer Tips to Help Consumers Guard Against Loan Scams

The Missouri Independent Bankers Association (MIBA), its national affiliate, the Independent Community Bank of America (ICBA), and member banks like Bank of New Madrid are arming consumers with information to help protect themselves against loan scams.
 
“Many Americans are being targeted by scams that promise to help them avoid foreclosure or refinance their existing mortgage to a lower rate,” said R. David Crader, MIBA President and Chairman of the Board of The Bank of Missouri, Perryville, MO.  “It’s essential to be aware and proactive in resisting fraudulent refinance schemes leading to even more financial exposure.”
 
Consumers who are having financial troubles should contact their mortgage lender immediately.  By doing so, they are less likely to be taken in by loan scams, which are almost always unsolicited phone calls, e-mails or letters.  Knowing the warning signs is key. MIBA and community banks across the state encourage consumers to be wary of any company that does the following:
 

• Guarantees to stop the foreclosure process—no matter what your circumstances.
  
• Instructs you to not contact your lender, lawyer or credit or housing counselor.
  
• Collects a fee before providing you with any services.
• Accepts payment only by cashier’s check or wire transfer.
  
• Encourages you to lease your home so you can buy it back over time.
  
• Tells you to make your mortgage payments directly to them, rather than your lender.
  
• Tells you to transfer your property deed or title to them.
  
• Offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale.
  
• Offers to fill out paperwork for you.
  

Pressures you to sign paperwork you haven’t had a chance to read thoroughly or that you don’t understand.
 
If consumers think they have been the victim of a loan scam, they should contact their state attorney general’s office to file a complaint and learn the next steps to repair any damage incurred as a result of the scam. For additional tips, consumers can also check the following resources:

Federal Deposit Insurance Corporation:

Federal Reserve

Office of the Comptroller of the Currency
 
Any community bank customer who is having problems with a mortgage should visit a local community bank for more information about legitimate programs and loan options available to them.
 
To find a community bank near you, search the MIBA website at www.miba.net, click on “Bank Members” for an alphabetical listing by city.