1. State of Nevada Office of the Attorney General Foreclosure Rescue

2. What is Foreclosure Rescue Fraud? Phantom Help Phantom Help Foreclosure Rescue Consultant charges outrageous fees either for phone calls and paperwork the consumer could have done/him herself. Foreclosure Rescue Consultant charges outrageous fees either for phone calls and paperwork the consumer could have done/him herself. Homeowner is left without enough assistance to actually save the home and with little or no time left to prevent this grievous loss by the time s/he realizes it. Homeowner is left without enough assistance to actually save the home and with little or no time left to prevent this grievous loss by the time s/he realizes it. The consultant essentially abandons the homeowner to a fate that might well have been prevented with better intervention. The consultant essentially abandons the homeowner to a fate that might well have been prevented with better intervention.

3. What is Foreclosure Rescue Fraud? Bailout Bailout In this scam, the homeowner is deceived into signing over the title with the belief that he will be able to remain in the house as a renter and eventually buy it back over time. The terms of these scams are so onerous that the buy-back may be impossible, the homeowner losses possession and the “rescuer” walks off with most or all of the equity. In this scam, the homeowner is deceived into signing over the title with the belief that he will be able to remain in the house as a renter and eventually buy it back over time. The terms of these scams are so onerous that the buy-back may be impossible, the homeowner losses possession and the “rescuer” walks off with most or all of the equity.

4. What is Foreclosure Rescue Fraud? Bait-and-Switch: Bait-and-Switch: In this scam, the homeowners think they are signing documents to bring the mortgage current, but instead actually surrender their ownership. They usually don’t even know they have been scammed until they are evicted. In this scam, the homeowners think they are signing documents to bring the mortgage current, but instead actually surrender their ownership. They usually don’t even know they have been scammed until they are evicted.

5. How has the State of Nevada Responded to the Problem of Foreclosure Rescue Fraud? 2007 Legislation Session witnessed the passage of AB 440. AB440: 1. Creates a statutory definition of a foreclosure consultant 2. Requires that a foreclosure consultant perform their contracted duties before receiving payment in addition to other prohibited activities 3. Creates an administrative penalty for foreclosure consultants who violated these provisions enforced by the Nevada Mortgage Lending Division. 4. Creates a statutory definition of foreclosure purchaser 5. Subjects foreclosure purchaser to administrative monetary penalty for violations of these provisions 6. Provides for a private right of action from a foreclosure consultant who violates these provisions 7. Provides actual and punitive damages to victims for violations plus reasonable attorney fees. NRS 645F.300-NRS 645F.450

6. NRS 645F.400 A foreclosure consultant cannot: A foreclosure consultant cannot: claim, demand, charge, collect or receive any compensation until after he has fully performed each covered service that he contracted to perform or represented he would perform. Any charge for services must also be fully disclosed to a homeowner. A foreclosure consultant cannot demand compensation for services in the form of any assignment of a Homeowner’s wages, a lien on real or personal property, assignment of a homeowner’s equity, or other interest in a residence in foreclosure.

7. The Nevada Attorney General Where fraud is involved criminal statutes may be utilized to punish the “rescuers.” However, the State usually is not able to help individual homeowners save their homes.

8. Criminal Statutes Deceptive Trade Theft Obtaining Money Under False Pretenses Racketeering Other Charges depending on circumstances

9. Nevada Attorney General’s Mortgage Fraud TASK FORCE

10. Nevada Foreclosure Snapshot Nevada is #1 in the nation for its foreclosure rate Nevada is #1 in the nation for its foreclosure rate 3.4% of households entered foreclosure in 2007 3.4% of households entered foreclosure in 2007 66,316 foreclosure filings – a 200% increase from 2006 66,316 foreclosure filings – a 200% increase from 2006 Statewide problem, but Las Vegas is hardest hit area Statewide problem, but Las Vegas is hardest hit area

11. New Legislation AB 440 passed by 2007 Legislature AB 440 passed by 2007 Legislature Criminal penalties for mortgage fraud Criminal penalties for mortgage fraud Up to 20 years in jail Up to 20 years in jail $50,000 fine $50,000 fine Allows homeowners to seek to rescind a foreclosure reconveyance if transaction is fraudulent Allows homeowners to seek to rescind a foreclosure reconveyance if transaction is fraudulent

12. New Legislation AB 440 passed by 2007 Legislature AB 440 passed by 2007 Legislature Makes it an unfair lending practice for a lender to make a loan without determining of borrower can repay it Makes it an unfair lending practice for a lender to make a loan without determining of borrower can repay it Foreclosure consultants can’t collect payment for services rendered until all services are performed Foreclosure consultants can’t collect payment for services rendered until all services are performed Prohibits foreclosure consultants from taking wage assignments, liens or equity as compensation Prohibits foreclosure consultants from taking wage assignments, liens or equity as compensation

13. WHY?

14. Meet happy couple in their new house!

15. Now, house is in foreclosure

16. Enter Matt Marlon I can help you! I’ll take care of paying off your mortgage and I'll pay you some cash too. Just sign here.

18. Try and find me now!

19. Metro Police FBI Secretary of State Attorney General Dept of Business & Industry

20. Open up lines of communication Open up lines of communication Share information Share information Ensure prosecution Ensure prosecution

21. Strike Force Partners Attorney General’s Office Attorney General’s Office Bureau of Consumer Protection Bureau of Consumer Protection Bureau of Criminal Justice Bureau of Criminal Justice Secretary of State Secretary of State Department of Business & Industry Department of Business & Industry Mortgage Lending Division Mortgage Lending Division

22. Most Common Cases 1. Phantom Help 2. The Bailout 3. The Bait & Switch 4. Straw Buyers

23. Being Proactive Member of the FBI Mortgage Fraud Task Force Member of the FBI Mortgage Fraud Task Force Assigned an investigator and attorney Assigned an investigator and attorney Foreclosure Information Seminars Foreclosure Information Seminars Co-Hosted by State Treasurer and possibly Senator Reid Co-Hosted by State Treasurer and possibly Senator Reid

24. Any Questions?

25. If you suspect your client is a victim of foreclosure fraud: File a complaint form with the Nevada Attorney General File a complaint form with the Nevada Attorney General Report to Nevada Mortgage Lending Division, Dept. of Business & Industry. Report to Nevada Mortgage Lending Division, Dept. of Business & Industry. (702) 486 0780(775) 684 7060

26. Mortgage Fraud Resources Southern Nevada Mortgage Task Force (702) 584-5555 (Federal, State, Metro task force) Southern Nevada Mortgage Task Force (702) 584-5555 (Federal, State, Metro task force) http://fightfraud.nv.gov http://fightfraud.nv.gov http://fightfraud.nv.gov http://www.ftc.gov http://www.ftc.gov http://www.ftc.gov

27. Additional Resources http://foreclosurehelp.nv.gov http://www.995hope.org

28. Nevada Attorney General Bureau of Consumer Protection 702 486 3194 775 684 1180 http://ag.state.nv.us