A top administrator of the Troubled Asset Relief Program (TARP) said recent
changes to the program could lead to increased fraud."Frequent changes to the programs provide opportunities for experienced
criminal elements to prey on desperate homeowners," the program's Inspector
General Neil Barofsky wrote in a quarterly report issued Tuesday.Barkofsky pointed out that the program has already spawned several scams in
which borrowers are fraudulently persuaded to pay upfront fees for
nonexistent modifications.He complained that the Treasury Department isn't requiring appraisals in
advance of principle reductions, making it easier for lenders to
fraudulently qualify for incentive payments."No program of this type and scale can be considered well designed without
robust protections of taxpayer funds against the predation of criminals,"
the report said.Source: Associated Press, Christopher S. Rugaber (04/20/2010)
changes to the program could lead to increased fraud."Frequent changes to the programs provide opportunities for experienced
criminal elements to prey on desperate homeowners," the program's Inspector
General Neil Barofsky wrote in a quarterly report issued Tuesday.Barkofsky pointed out that the program has already spawned several scams in
which borrowers are fraudulently persuaded to pay upfront fees for
nonexistent modifications.He complained that the Treasury Department isn't requiring appraisals in
advance of principle reductions, making it easier for lenders to
fraudulently qualify for incentive payments."No program of this type and scale can be considered well designed without
robust protections of taxpayer funds against the predation of criminals,"
the report said.Source: Associated Press, Christopher S. Rugaber (04/20/2010)
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