NCUA writes on foreclosure rescue scams

April 30, 2009 – NCUA has sent a Regulatory Alert to credit unions warning them to be on the lookout for loan modification and foreclosure rescue scams and to report suspected scams on suspicious activity reports.

The Alert, 09-RA-05, includes a link to the advisory that was posted online earlier this month by the Financial Crimes Enforcement Network. NCUA notes that these scams, which prey on homeowners having a hard time keeping up with their loans, can result in losses of money, equity and even homes.

NCUA notes that credit unions could be contacted by those perpetrating the scams or by members who have been victimized. “Credit unions are reminded of the requirement to implement appropriate risk-based policies, procedures and processes to aid in the identification of potentially suspicious transactions,” the alert states. This includes conducting “appropriate member due diligence on a risk-assessed basis.”