Hillsborough County Consumer Protection Agency 8900 N. Armenia Avenue, Suite #226 Tampa, FL 33604

Hillsborough CountyHillsborough County

Consumer Protection AgencyConsumer Protection Agency8900 N. Armenia Avenue, Suite #2268900 N. Armenia Avenue, Suite #226

Tampa, FL 33604Tampa, FL 33604

(813) 903-3430(813) 903-3430www.hillsboroughcounty.org/consumerprotectionwww.hillsboroughcounty.org/consumerprotection

Who Are We?Who Are We? The Hillsborough County The Hillsborough County

Consumer Protection Consumer Protection Agency was established in Agency was established in 1994.1994.

In 2000, a reorganization In 2000, a reorganization plan was approved to plan was approved to rebuild the agency and rebuild the agency and increase its size. increase its size.

New OrdinanceNew Ordinance

In 2006, Commissioners In 2006, Commissioners approved a new approved a new Consumer Protection Consumer Protection Ordinance giving the Ordinance giving the agency additional agency additional enforcement tools.enforcement tools.

Florida CPA’sFlorida CPA’s1.1. Pinellas County Office of Consumer ProtectionPinellas County Office of Consumer Protection

Clearwater, FLClearwater, FL

2.2. Broward County Consumer Affairs DivisionBroward County Consumer Affairs Division Fort Lauderdale, FLFort Lauderdale, FL

3.3. Miami-Dade County Consumer Services Miami-Dade County Consumer Services DepartmentDepartment

Miami, FLMiami, FL

4.4. Pasco County Consumer Affairs DivisionPasco County Consumer Affairs Division New Port Richey, FLNew Port Richey, FL

5.5. Orange County Consumer Fraud UnitOrange County Consumer Fraud Unit Orlando, FLOrlando, FL

6.6. Palm Beach County Division of Consumer AffairsPalm Beach County Division of Consumer Affairs West Palm Beach, FLWest Palm Beach, FL

MissionMission To enforce consumer protection To enforce consumer protection

laws laws To protect and educate To protect and educate

Hillsborough County Consumers, Hillsborough County Consumers, in the marketplace and business in the marketplace and business community, against economic community, against economic losses resulting from losses resulting from

• UnfairUnfair• deceptive or deceptive or • illegal business practices.illegal business practices.

Who Do We Serve?Who Do We Serve? All residents and visitors All residents and visitors

of Hillsborough County.of Hillsborough County. Anyone who may have Anyone who may have

experienced a problem experienced a problem with a company or with a company or business in Hillsborough business in Hillsborough CountyCounty

JurisdictionJurisdiction

Advise, Information & Advise, Information & AssistanceAssistance

Clearinghouse of Clearinghouse of information for consumers.information for consumers.

Consumers can call us or Consumers can call us or visit our website at: visit our website at: www.hillsboroughcounty.org/consumerprotectiowww.hillsboroughcounty.org/consumerprotectionn

ComplaintsComplaints CPA intakes approximately CPA intakes approximately

100 formal and many 100 formal and many informal complaints per informal complaints per month.month.

The topics and issues of The topics and issues of these complaints vary these complaints vary greatly in terms of severity greatly in terms of severity and complexity.and complexity.

Frequent ComplaintsFrequent Complaints Failure to performFailure to perform Quality of workmanshipQuality of workmanship Lease agreements & security depositsLease agreements & security deposits

Landlord/tenant issues involving the health, Landlord/tenant issues involving the health, safety and condition of the property should safety and condition of the property should be referred to the County’s Housing & be referred to the County’s Housing & Community Code Enforcement department.Community Code Enforcement department.

Billing & credit disputesBilling & credit disputes WarranteesWarrantees Criminal theft & fraudCriminal theft & fraud Unlicensed activityUnlicensed activity AdvertisingAdvertising

InvestigationsInvestigations Consumers are asked to submit Consumers are asked to submit

their complaint in writing their complaint in writing Provide supporting documentationProvide supporting documentation Include a timeline of events and Include a timeline of events and

steps taken to resolve the steps taken to resolve the complaint.complaint.

Complaints are evaluated by the Complaints are evaluated by the Chief Investigator to determine if Chief Investigator to determine if there is reasonable grounds to there is reasonable grounds to open an inquiry.open an inquiry.

InvestigationsInvestigations Investigator assigned the complaint Investigator assigned the complaint

begins a background investigation.begins a background investigation. Investigator will make contact with Investigator will make contact with

consumer within 5 days of receipt consumer within 5 days of receipt of complaint.of complaint.

Investigator makes initial contact Investigator makes initial contact with the business by sending a with the business by sending a letter notifying them of the letter notifying them of the compliant and requesting a compliant and requesting a response within 10 days.response within 10 days.

MediationMediation Mediation is handled throughMediation is handled through

Telephone contactTelephone contact Certified lettersCertified letters Field visitsField visits Informal office meetingsInformal office meetings

Agency is committed to making Agency is committed to making consumer whole.consumer whole.

When appropriate, referrals are When appropriate, referrals are made to other agencies.made to other agencies.

Criminal InvestigationsCriminal Investigations Criminal conduct involving Criminal conduct involving

theft, fraud and some theft, fraud and some unlicensed activity may lead to unlicensed activity may lead to arrest and criminal prosecution.arrest and criminal prosecution.

Criminal cases are referred to Criminal cases are referred to the appropriate prosecuting the appropriate prosecuting agency.agency. State Attorney’s OfficeState Attorney’s Office Statewide ProsecutorStatewide Prosecutor U.S. Attorney GeneralU.S. Attorney General

StatisticsStatistics Last year, the agency Last year, the agency

recovered in excess of $1.6 recovered in excess of $1.6 Million on behalf of Million on behalf of consumers.consumers.

Recovery includes:Recovery includes: Cash recoveryCash recovery Cash savingsCash savings Service recoveryService recovery

Citation AuthorityCitation Authority Investigators are now able to Investigators are now able to

directly issue citations that will directly issue citations that will be processed by the county be processed by the county court system.court system.

Repeat violators and gross Repeat violators and gross conduct can warrant a citation.conduct can warrant a citation.

Violators can receive a Violators can receive a financial penalty of up to $500, financial penalty of up to $500, and a court appearance.and a court appearance.

Outreach & EducationOutreach & Education

Goal is to educate the Goal is to educate the public on being a good public on being a good consumerconsumer

Education is the first line Education is the first line of defense in protecting of defense in protecting consumers from consumers from victimization.victimization.

Outreach & EducationOutreach & Education Community Education Community Education

ProgramsPrograms Civic Groups & OrganizationsCivic Groups & Organizations Senior Groups & OrganizationsSenior Groups & Organizations Hispanic Groups & Hispanic Groups & OrganizationsOrganizations

High School StudentsHigh School Students

Outreach & EducationOutreach & Education CPA participates in CPA participates in

Community Health, Financial Community Health, Financial and Safety Fairs and Safety Fairs

Active Volunteer Program Active Volunteer Program with 8 Senior volunteerswith 8 Senior volunteers who who enhance our efforts.enhance our efforts.

Legal AdvocacyLegal Advocacy

Twice a month (2Twice a month (2ndnd and 4 and 4thth Friday Friday of each month) we schedule of each month) we schedule appointments to meet senior appointments to meet senior consumers in both the Sun City consumers in both the Sun City Center and Plant City areas.Center and Plant City areas.

The agency teams up with the HC The agency teams up with the HC State Attorney’s Office to provide State Attorney’s Office to provide assistance to seniors that want to assistance to seniors that want to speak with someone in person.speak with someone in person.

SCAMS, SCAMS,

SCHEMESSCHEMES

&&

SCOUNDRELSSCOUNDRELS

Identity Theft – No. 1Identity Theft – No. 1

ID TheftID TheftPhishingPhishingVishingVishingSmishingSmishingSynthetic ID TheftSynthetic ID TheftMedical ID TheftMedical ID Theft

Synthetic ID Fraud Synthetic ID Fraud vs. vs.

True-Name ID FraudTrue-Name ID Fraud Synthetic ID FraudSynthetic ID Fraud

Combine fake & real Combine fake & real consumer consumer informationinformation

Or all false Or all false information to open information to open an accountan account

SS#’s and/or names SS#’s and/or names might be changed to might be changed to create new identitiescreate new identities

True-Name ID FraudTrue-Name ID Fraud Consumer’s real Consumer’s real

identifying identifying information is used information is used without modificationwithout modification

The fraudster poses The fraudster poses as the actual as the actual consumerconsumer

Synthetic ID FraudSynthetic ID Fraud Mainly hurts creditorsMainly hurts creditors Consumers end up paying for the Consumers end up paying for the

fraud losses through fees and higher fraud losses through fees and higher interest rates.interest rates.

Creates subfiles at the credit bureaus. Creates subfiles at the credit bureaus. Additional credit report information tied Additional credit report information tied

to a real consumer’s SS#, but someone to a real consumer’s SS#, but someone else’s name.else’s name.

The negative information gets entered The negative information gets entered under a subfile that is linked to, but under a subfile that is linked to, but doesn’t belong to you.doesn’t belong to you.

Medical ID TheftMedical ID Theft

Medical ID TheftMedical ID Theft Medical consequencesMedical consequences

the medical information and records of the medical information and records of the thief become the thief become intermingledintermingled with with your records.your records.

The financial consequencesThe financial consequences unpaid billsunpaid bills serious blemishes on credit reports serious blemishes on credit reports and harassing calls from collection and harassing calls from collection

agencies.agencies.

Victims of Medical ID TheftVictims of Medical ID Theft As medical-record-keeping systems As medical-record-keeping systems

evolve toward electronically based evolve toward electronically based interconnected systems, the interconnected systems, the potential for catastrophic errors is on potential for catastrophic errors is on the rise.the rise.

Victims find it difficult to get their Victims find it difficult to get their health care and insurance records health care and insurance records corrected.corrected.

Victims are many times forced to Victims are many times forced to sue their health care providers.sue their health care providers.

How Does It Happen?How Does It Happen? There is a huge black market for There is a huge black market for

medical records.medical records. Medical records sell for $50 each Medical records sell for $50 each

on the street verses Social Security on the street verses Social Security numbers that go for $1 or $2.numbers that go for $1 or $2.

Health care provider employees Health care provider employees are many times paid by criminals are many times paid by criminals or criminal organizations to obtain or criminal organizations to obtain medical information in bulk.medical information in bulk.

How Does It Happen?How Does It Happen? Stolen records are then sold to Stolen records are then sold to

individuals without insurance who individuals without insurance who are in need of are in need of elective surgeries elective surgeries or other expensive treatments.or other expensive treatments.

The World Privacy Forum The World Privacy Forum estimates that as many as estimates that as many as 250,000 to 500,000 consumers 250,000 to 500,000 consumers have been victims of medical ID have been victims of medical ID theft as of mid-2006.theft as of mid-2006.

Prescription For DisasterPrescription For Disaster Less than half of the health Less than half of the health

care facilities encrypt their care facilities encrypt their data before transmission.data before transmission.

This lack of data security is This lack of data security is potentially disastrous potentially disastrous

HIPPA protections are riddled HIPPA protections are riddled with loopholes.with loopholes.

Protection TipsProtection Tips View your medical records.View your medical records.

HIPPA requires health care providers to HIPPA requires health care providers to either supply you with the requested either supply you with the requested records within 30 days or ask for more time.records within 30 days or ask for more time.

World Privacy Forum’s website World Privacy Forum’s website www.worldprivacyforum.orgwww.worldprivacyforum.org Contains several sample letters to use to Contains several sample letters to use to

request copies of your medical records.request copies of your medical records. Steps you can take to try to get your Steps you can take to try to get your

records corrected and amended.records corrected and amended. Keep a medical journalKeep a medical journal

SECURITY FREEZE LAW

What does a security freeze mean?

Your file cannot be shared with potential creditors.

If your credit files are frozen, even someone who has your name and Social Security number probably would not be able to obtain credit in your name.

How do I place a freeze?

Write to each credit bureau.Credit bureaus charge $10 to place or

remove a security freeze, unless you are age 65 or older or a victim of ID Theft.

Victims will be expected to provide– A copy of the police report– Investigative report or complaint to a law

enforcement agency

When will the freeze take effect?

5 business days from receipt of your letter.

You will receive a confirmation letter in 10 days with a PIN or password.

Keep your PIN or password in a safe place.

Can I lift the freeze?

Yes.There is no charge for seniors over 65

or victims.Everyone else will be charged $10 for

a temporary lift.Credit bureaus must lift the freeze no

later than 3 business days from receipt of your request.

Can I order my own credit report if it is frozen?

Yes. Consumers can continue to receive their

free annual credit reports. There is only one Federal website,

www.annualcreditreport.com By phone call toll free at

1-877-322-8228. Do not contact the credit bureaus directly.

Security Freeze

If a creditor requests your file, they will see a message or code indicating the file is frozen.

They will not be able to obtain your score. You must freeze with all three credit

bureaus. The freeze will NOT lower your credit

score.

Exceptions

Certain entities still have access–Existing creditors–Collection agencies–Offers of credit–Government agencies

Predatory LendingPredatory Lendingoror

Loan FraudLoan Fraud

Florida, A Mortgage FraudFlorida, A Mortgage Fraud“HOT SPOT”“HOT SPOT”

Florida No. 1 for mortgage fraud in Florida No. 1 for mortgage fraud in 2007 for 22007 for 2ndnd straight year. straight year.

Predatory Lending or Mortgage Predatory Lending or Mortgage Fraud has risen to epidemic Fraud has risen to epidemic proportions in the U.S. proportions in the U.S.

Financial Institutions are sustaining Financial Institutions are sustaining multibillion-dollar losses. multibillion-dollar losses.

Consumer’s homes, are on the line. Consumer’s homes, are on the line.

20% of Mortgage Fraud Cases20% of Mortgage Fraud Cases

For-Profit Mortgage FraudFor-Profit Mortgage Fraud Property FlippingProperty Flipping

The property is bought, falsely appraised at The property is bought, falsely appraised at a higher value and quickly sold, sometimes a higher value and quickly sold, sometimes several times in rapid succession. several times in rapid succession.

Eventually, the mortgage goes into default.Eventually, the mortgage goes into default. The profits disappear with the criminal.The profits disappear with the criminal.

Straw buyersStraw buyers The identity of the borrower is concealed by The identity of the borrower is concealed by

using the name and credit history of a using the name and credit history of a willing accomplice.willing accomplice.

For-Profit Mortgage FraudFor-Profit Mortgage Fraud Fake/Stolen IdentityFake/Stolen Identity

Stolen identities - along with credit histories - Stolen identities - along with credit histories - are used on a loan application.are used on a loan application.

Inflated appraisalsInflated appraisals An appraiser agrees to inflate the property of An appraiser agrees to inflate the property of

the house.the house. Equity skimmingEquity skimming

An investor uses a straw buyer to get a An investor uses a straw buyer to get a mortgage.mortgage.

Prior to closing, the straw buyer signs the Prior to closing, the straw buyer signs the property over to the investor, who in turn rents property over to the investor, who in turn rents the property out without making any mortgage the property out without making any mortgage payments.payments.

The Home Repair ScamThe Home Repair Scam

The Home Repair ScamThe Home Repair Scam Use high pressure sales Use high pressure sales

tactics to sell home tactics to sell home improvements improvements

They just happen to know They just happen to know someone who will finance the someone who will finance the project.project.

Credit problems will not be a Credit problems will not be a problem for them.problem for them.

RED FLAGSRED FLAGS A lender or investor tells A lender or investor tells

the victim they are the the victim they are the only chance of getting a only chance of getting a loan. loan.

The victim is asked to sign The victim is asked to sign a sales contract or loan a sales contract or loan documents that are blank documents that are blank or that contain information or that contain information which is not true.which is not true.

RED FLAGSRED FLAGSThe cost or loan terms The cost or loan terms are not what the victim are not what the victim agreed to.agreed to.

The victim is told that The victim is told that refinancing can solve refinancing can solve their credit or money their credit or money problems.problems.

Mortgage FraudMortgage FraudCRIMINAL INVESTIGATIONCRIMINAL INVESTIGATION

Beginning in 2003 a scheme was Beginning in 2003 a scheme was devised to solicit mostly minority devised to solicit mostly minority consumers in poor and depressed consumers in poor and depressed residential areas promising to fix up residential areas promising to fix up their home for no money down.their home for no money down.

The defendants and their criminal The defendants and their criminal enterprise submitted loan applications enterprise submitted loan applications containing false, forged and counterfeit containing false, forged and counterfeit supporting documents without the supporting documents without the consumers’ knowledge.consumers’ knowledge.


Once the loans were funded , the Once the loans were funded , the loans were closed at title companies loans were closed at title companies without the presence of the without the presence of the consumers.consumers.

The funds were manipulated and The funds were manipulated and distributed by the defendants with distributed by the defendants with the title companies assistance and the title companies assistance and cooperation.cooperation.

Notary fraud and forgeries were Notary fraud and forgeries were common in the closing of the loans.common in the closing of the loans.


Of the 21 home improvement Of the 21 home improvement related loans, all of the construction related loans, all of the construction funds were deposited directly into funds were deposited directly into the defendants bank accounts.the defendants bank accounts.

Little to no work was done on the Little to no work was done on the victims’ houses.victims’ houses.

Some work that had been done was Some work that had been done was shoddy, incomplete and done by shoddy, incomplete and done by unlicensed contractors.unlicensed contractors.


The victims were left with large The victims were left with large loan balances due and none of loan balances due and none of the home improvement projects the home improvement projects completed as promised.completed as promised.

Numerous fees were charged to Numerous fees were charged to the consumers during the the consumers during the closing process and pocketed by closing process and pocketed by the defendants and others.the defendants and others.


It was commonplace and routine for It was commonplace and routine for each of the loans to contain each of the loans to contain fraudulent documents created or fraudulent documents created or altered by defendants.altered by defendants. Employment historyEmployment history Income verificationIncome verification Altered or phony W-2’sAltered or phony W-2’s Check stubsCheck stubs Credit reportsCredit reports Rental history verification checksRental history verification checks


After a lengthy 3 year After a lengthy 3 year investigation, six defendants were investigation, six defendants were charged with charged with Racketeering Racketeering Conspiracy to Commit Racketeering Conspiracy to Commit Racketeering

by fraudulently obtaining mortgages by fraudulently obtaining mortgages in the names of victims solicited for in the names of victims solicited for home improvement projects.home improvement projects.

Defendants were also responsible Defendants were also responsible for obtaining fraudulent loans on for obtaining fraudulent loans on their own personal properties.their own personal properties.


The 150 page arrest affidavit The 150 page arrest affidavit detailed the fraudulent activity in detailed the fraudulent activity in 31 residential mortgage loans 31 residential mortgage loans totaling nearly $3 million.totaling nearly $3 million.

The majority of the loans were The majority of the loans were submitted through and funded by submitted through and funded by ARGENT MORTGAGE COMPANYARGENT MORTGAGE COMPANY One of the nation’s largest wholesale One of the nation’s largest wholesale

“sub-prime” mortgage companies.“sub-prime” mortgage companies.


Two defendants were former high Two defendants were former high ranking employees of ARGENT’S ranking employees of ARGENT’S White Plains, NY office.White Plains, NY office.

The two approved fraudulent The two approved fraudulent documents and loan packages documents and loan packages submitted by brokers.submitted by brokers.

They received tens of thousands They received tens of thousands of dollars in bribes or kickbacks. of dollars in bribes or kickbacks.

ARGENT INSIDERSARGENT INSIDERSOrson Benn & Samuel GreenOrson Benn & Samuel Green

DefendantsDefendantsScott Almeida, Frank Giffone & Scott Almeida, Frank Giffone &

Adrienne WhiteAdrienne White


In addition to ARGENT, In addition to ARGENT, fraudulent loans were also fraudulent loans were also approved byapproved by Pinnacle Mortgage CompanyPinnacle Mortgage CompanyDecision One Mortgage Decision One Mortgage CompanyCompany

Mortgage Lenders Network Mortgage Lenders Network USAUSA


The other four defendants are all former The other four defendants are all former owners, principals or employees of owners, principals or employees of Hillsborough County Mortgage broker Hillsborough County Mortgage broker companiescompanies Advanced Mortgage SolutionsAdvanced Mortgage Solutions Consumer Lending ResourcesConsumer Lending Resources First Commerce Home FundingFirst Commerce Home Funding

In addition to the mortgage brokerage In addition to the mortgage brokerage businesses, the defendants operated two businesses, the defendants operated two phony home improvement companiesphony home improvement companies Premier Quality RenovationsPremier Quality Renovations Florida Beautiful ConstructionFlorida Beautiful Construction


In total, approximately 180 loans were In total, approximately 180 loans were submitted by various mortgage broker submitted by various mortgage broker businesses through ARGENT MORTGAGE businesses through ARGENT MORTGAGE COMPANY totaling nearly $18 million.COMPANY totaling nearly $18 million.

At least 129 of those loans were funded in At least 129 of those loans were funded in the amount of approximately $13 million.the amount of approximately $13 million.

The investigation is ongoing and additional The investigation is ongoing and additional charges are anticipated against other charges are anticipated against other associates related to the six defendants associates related to the six defendants and their criminal enterprise.and their criminal enterprise.

Subprime LendersSubprime Lenders

Subprime LendersSubprime Lenders Offer credit to individuals who Offer credit to individuals who

otherwise might never be able to otherwise might never be able to build home equity.build home equity.

Not all subprime loans are Not all subprime loans are predatory.predatory.

But virtually every predatory loan But virtually every predatory loan we have seen is a subprime loan.we have seen is a subprime loan.

Subprime LoansSubprime Loans Buyer Beware Market!Buyer Beware Market! What constitutes subprime?What constitutes subprime?

The credit score used to separate prime The credit score used to separate prime from subprime varies with the lender from subprime varies with the lender and loan.and loan.

Typically, below 600 is subprimeTypically, below 600 is subprime FICO score from 600 to 650 gray areaFICO score from 600 to 650 gray area

Consumers with scores in the mid-600 Consumers with scores in the mid-600 range were many times steered into range were many times steered into subprime loans when they qualified subprime loans when they qualified for prime.for prime.

Easy PreyEasy Prey Shady lenders targeted Shady lenders targeted

people with poor credit who people with poor credit who had few other options.had few other options.

Many times put elderly Many times put elderly consumers with good credit consumers with good credit into subprime loans.into subprime loans.

Foreclosure “Rescue” ScamForeclosure “Rescue” Scam The “rescuer” identifies distressed The “rescuer” identifies distressed

homeowners through public foreclosure homeowners through public foreclosure notices in newspapers or at government notices in newspapers or at government offices.offices.

The “rescuer” then contacts the The “rescuer” then contacts the homeowner by phone, personal visit, card homeowner by phone, personal visit, card or flyer left at the door, or advertising.or flyer left at the door, or advertising. ““Stop foreclosure with just one phone call.”Stop foreclosure with just one phone call.” ““I’d like to $ buy $ your house”I’d like to $ buy $ your house” ““You have options”You have options” ““Do you need instant debt relief and CASH?”Do you need instant debt relief and CASH?”

How to Spot a How to Spot a “Rescue Scam”“Rescue Scam”

Call itself a “mortgage Call itself a “mortgage consultant,” “foreclosure consultant,” “foreclosure service,” or something similar.service,” or something similar.

Contact or advertises to people Contact or advertises to people whose homes are listed for whose homes are listed for foreclosure, including anyone foreclosure, including anyone who sends flyers or solicits door-who sends flyers or solicits door-to-door or by phone.to-door or by phone.

How to Spot a How to Spot a “Rescue Scam”“Rescue Scam”

Collects a fee before providing Collects a fee before providing services.services.

The victim is instructed to make The victim is instructed to make their mortgage payments their mortgage payments directly to the rescuer instead of directly to the rescuer instead of the lender.the lender.

The victim is instructed to The victim is instructed to transfer their deed or title to the transfer their deed or title to the individual or company.individual or company.

Initial VisitInitial Visit Offer a “fresh start.”Offer a “fresh start.” Has “testimonials”Has “testimonials” Instructs homeowner to Instructs homeowner to

cease contact with the cease contact with the lender and/or lawyerslender and/or lawyers

They will handle all They will handle all negotiationsnegotiations

ResultResultOnce it is too late… the Once it is too late… the “rescuer” takes the home “rescuer” takes the home or drains the equityor drains the equity

Many homeowners are Many homeowners are then evicted by their then evicted by their “rescuer”“rescuer”

Reverse MortgagesReverse Mortgages A special type of home loan that allows A special type of home loan that allows

homeowners who are 62 and older to homeowners who are 62 and older to borrow against their home equity without borrow against their home equity without having to repay the money untilhaving to repay the money until the home is sold the home is sold or the borrower passes away or the borrower passes away or moves out permanentlyor moves out permanently

These loans are popular options for seniors These loans are popular options for seniors because they offer a cash source which can because they offer a cash source which can help meet unexpected medical expenses, help meet unexpected medical expenses, supplement social security and more.supplement social security and more.

Reverse MortgagesReverse Mortgages Can serve a purpose when financed Can serve a purpose when financed

through legitimate lenders.through legitimate lenders. Homeowners who take out a reverse Homeowners who take out a reverse

mortgage can receive payments in mortgage can receive payments in A lump sumA lump sum One a monthly basisOne a monthly basis Or on an occasional bases as a line of creditOr on an occasional bases as a line of credit

Homeowners whose circumstances Homeowners whose circumstances change can restructure their payment change can restructure their payment options.options.

Reverse Mortgage ScamsReverse Mortgage Scams Deceptive practices and allegations of high Deceptive practices and allegations of high

pressure sales tactics are being more pressure sales tactics are being more frequently encountered as senior citizens are frequently encountered as senior citizens are being taken advantage of under the guise of being taken advantage of under the guise of a helpful and legitimate reverse mortgage.a helpful and legitimate reverse mortgage.

Borrowers also run the risk of being steered Borrowers also run the risk of being steered into inappropriate loans and annuities by into inappropriate loans and annuities by sales agents and insurance brokers who sales agents and insurance brokers who could be working together without disclosing could be working together without disclosing that relationship to the borrower.that relationship to the borrower.

Predatory Loan Predatory Loan Red FlagsRed Flags

Balloon PaymentBalloon Payment Borrowers with a balloon payment have a Borrowers with a balloon payment have a

46% greater chance of foreclosure.46% greater chance of foreclosure. Too-large loanToo-large loan Excessive FeesExcessive Fees Useless ServicesUseless Services Credit card that taps your home equityCredit card that taps your home equity High Interest RateHigh Interest Rate

Red FlagsRed Flags Payday loanPayday loan Major Asset as collateralMajor Asset as collateral Mandatory arbitration clauseMandatory arbitration clause Prepayment PenaltiesPrepayment Penalties Balance Transfer FeesBalance Transfer Fees Lender solicitationLender solicitation Teaser RatesTeaser Rates

Shop and compare lenders and Shop and compare lenders and costs. costs. www.bankrate.comwww.bankrate.com

Do not let anyone persuade them Do not let anyone persuade them to make a false statement on to make a false statement on their application, such as:their application, such as: Overstating their incomeOverstating their income The source of their down paymentThe source of their down payment Failing to disclose the nature and Failing to disclose the nature and

amount of their debtsamount of their debts Length of their employmentLength of their employment

Consumer TipsConsumer Tips

TipsTips Be suspicious if anyone Be suspicious if anyone

tries to steer them to tries to steer them to just one lender.just one lender.

Don’t let anyone Don’t let anyone convince them to borrow convince them to borrow more money than they more money than they know they can afford to know they can afford to repay.repay.

TipsTips Never sign a blank document or Never sign a blank document or

a document containing blanks.a document containing blanks. If information is inserted by If information is inserted by

someone else after you have someone else after you have signed, you may still be bound signed, you may still be bound to the terms of the contract.to the terms of the contract. Insert “N/A” (not applicable) orInsert “N/A” (not applicable) or Cross through any blanks.Cross through any blanks.

TipsTips Read everything carefully Read everything carefully

and ask questions.and ask questions. Do not sign anything they Do not sign anything they

don’t understand.don’t understand. Be suspicious if the cost of Be suspicious if the cost of

a home improvement goes a home improvement goes up if they don’t accept the up if they don’t accept the contractor’s financing.contractor’s financing.

TipTipNever take an Never take an unsecured debt like unsecured debt like credit card debt and credit card debt and pay it off by securing pay it off by securing your home.your home.

LicensingLicensing Ask to see a copy of the contractor’s Ask to see a copy of the contractor’s

proficiency license.proficiency license. All contractors are regulated by the All contractors are regulated by the

State Department of Business & State Department of Business & Professional Regulations (DPBR).Professional Regulations (DPBR).

You may call them at (850) 487-1395 in You may call them at (850) 487-1395 in Tallahassee or on the Web at Tallahassee or on the Web at www.MyFloridaLicense.comwww.MyFloridaLicense.com or by mail at or by mail at Construction Industry Licensing Board, Construction Industry Licensing Board, 1940 N. Monroe St. , Tallahassee, FL 1940 N. Monroe St. , Tallahassee, FL 32399-103932399-1039

LicensingLicensing Visit the Hillsborough County website Visit the Hillsborough County website

at at www.hillsboroughcounty.orgwww.hillsboroughcounty.org Click on Contractor Licensing ReportsClick on Contractor Licensing Reports You can then search by license You can then search by license

number, name, firm name or number, name, firm name or complaint.complaint.

Call HC Contractor Licensing Call HC Contractor Licensing Services at (813) 635-7308Services at (813) 635-7308

Verify InsuranceVerify Insurance You may also contact your local You may also contact your local

Building Dept.Building Dept. City of Tampa (813) 259-1770City of Tampa (813) 259-1770 Hillsborough County (813) 272-5600Hillsborough County (813) 272-5600

Ask to see Certificates of Insurance Ask to see Certificates of Insurance for General Liability, Worker’s for General Liability, Worker’s Compensation, and Automobile Compensation, and Automobile InsuranceInsurance This is crucial!This is crucial! If your contractor damages your If your contractor damages your

property or experiences injuries on the property or experiences injuries on the job, you could be held liable.job, you could be held liable.

Avoiding ForeclosureAvoiding Foreclosure Communicate with your lender!Communicate with your lender!

If you seem like a good risk the lender will If you seem like a good risk the lender will offer to help keep your mortgage afloat.offer to help keep your mortgage afloat.

If you seem like a bad risk, the lender may If you seem like a bad risk, the lender may cut its losses by taking steps to foreclose and cut its losses by taking steps to foreclose and evict you as quickly as possible.evict you as quickly as possible.

Repayment PlanRepayment Plan If you suffer a short-term financial setback, If you suffer a short-term financial setback,

your lender may provide some breathing your lender may provide some breathing room by agreeing to let you pay off your room by agreeing to let you pay off your missed payment in two installments of the missed payment in two installments of the next two months.next two months.

Avoiding ForeclosureAvoiding Foreclosure Loan ModificationLoan Modification

Mortgage Servicers can adjust the Mortgage Servicers can adjust the terms of your loanterms of your loanLengthening the amortization scheduleLengthening the amortization scheduleLowering interest rateLowering interest rateRolling the delinquent amount into the Rolling the delinquent amount into the loan and reamortizing the new balanceloan and reamortizing the new balance

This will help you bring the loan This will help you bring the loan current.current.

Avoiding ForeclosureAvoiding Foreclosure Short SaleShort Sale

The lender allows you to sell the The lender allows you to sell the house for less than the outstanding house for less than the outstanding loan amount.loan amount.

The lender takes the proceeds and The lender takes the proceeds and forgives any remaining debt.forgives any remaining debt.

Short RefinanceShort Refinance The lender forgives some of your The lender forgives some of your

debt and refinances the rest into a debt and refinances the rest into a new loan.new loan.

HUD Approved LendersHUD Approved Lenders HUD-approved housing counseling HUD-approved housing counseling

agencies are available for free to provide agencies are available for free to provide information, counseling and free referral information, counseling and free referral to a list of HUD-approved lenders.to a list of HUD-approved lenders.

HUD 1-800-569-4287HUD 1-800-569-4287 HUD’s reverse mortgage websiteHUD’s reverse mortgage website

http://www.hud.gov/buying/rvrsmort.cfmhttp://www.hud.gov/buying/rvrsmort.cfm Don’t use estate planning service or any Don’t use estate planning service or any

service that charges a fee just for service that charges a fee just for referring a borrower to a lender.referring a borrower to a lender.

CONSUMER EDUCATIONCONSUMER EDUCATION

IS VITAL IN REDUCING IS VITAL IN REDUCING VICTIMIZATIONVICTIMIZATION

OFOF FINANCIAL CRIME. FINANCIAL CRIME.

Consumer Protection Consumer Protection AgencyAgency

THANKS YOU THANKS YOU FOR ALLOWING US FOR ALLOWING US TO BRING YOU THIS TO BRING YOU THIS

IMPORTANT INFORMATIONIMPORTANT INFORMATION

Hillsborough County Consumer Protection Agency 8900 N. Armenia Avenue, Suite #226 Tampa, FL 33604

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Transcript of Hillsborough County Consumer Protection Agency 8900 N. Armenia Avenue, Suite #226 Tampa, FL 33604