FDIC embarks on foreclosure prevention plan

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In an effort to help borrowers avoid foreclosure through loan modification, the Federal Deposit Insurance Corp. this week initiated its own foreclosure prevention plan.

Dubbed the Foreclosure Prevention Initiative, the agency notified commercial and savings financial institutions it supervises that its goal was to stop foreclosure rescue scams that promise false hope to consumers at risk of losing their homes.

The program specifically includes:

  • Outreach events for bankers and consumers
  • Telephone and Internet referral service directing consumers to the FDIC’s Call Center at 1-877-275-3342 or www.FDIC.gov, which directs consumers to legitimate counselors, mortgage assistants, and state and federal law enforcement agencies.
  • An information tool kit that is available at http://www.fdic.gov/foreclosureprevention.