Mortgage Fraud Update: Telemarketers Play Nasty

Mortgage fraud doesn’t just happen within the loan process; mortgage fraud can occur even before a consumer has made their loan application.

Telemarketers for a mortgage company in Wisconsin played nasty when they solicited unwitting homeowners to refinance their mortgages. The State Attorney General for Wisconsin announced his office has filed suit against the mortgage company, First American Funding CO., LLC of Columbus, WI, for egregious violations of the Do Not Call laws and for misleading practices.

The suit alleges that telemarketers for the company represented themselves as representing the existing mortgage company for the homeowners. When homeowners returned these calls they discovered a sales pitch to refinance with the new company, First American. The suit further alleges that First American representatives called consumers whose names were registered on the state’s Do Not Call List. Fines and penalties for such actions can quickly add up to a hefty sum.

If you feel you have been the victim of similarly nasty telemarketing or direct marketing fraud and misrepresentation, please contact your State Attorney General’s office. The only way to clean up the mortgage business is for consumers and ethical mortgage professionals to team up and report violators to the appropriate authorities.

Special thanks to the Milwaukee Wisconsin Journal Sentinel (www.jsonline.com) for its timely reporting of this serious mortgage fraud.

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This entry was posted on Tuesday, March 29th, 2011 at 3:09 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Mortgage Fraud Update: Telemarketers Play Nasty”

  1. Emily says:

    That’s outrageous! The way loans and whole banks get sold around these days, I frequently encounter borrowers who don’t know for sure the name of their current mortgage company and could be taken in because they want to be cooperative. In fact, I tell people at closing to be responsive to their mortgage company.

    It’s common sense to know who you’re talking to before you start talking about your private finances, but a lot of people need reinforcment for their common sense. This is a good reminder!

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