Herb Kohl: “Today I rise to briefly discuss my amendment No. 4988, which is cosponsored by Senators Collins, Lincoln and Mikulski.…”

“Today I rise to briefly discuss my amendment No. 4988, which is cosponsored by Senators Collins, Lincoln and Mikulski. In February, I held a revealing hearing in the Aging Committee that uncovered the ways scam artists prey on homeowners in financial and emotional distress. These scams are a consequence of the mortgage crisis that is plaguing our country--and my amendment attacks this growing problem. For most people, their home is their greatest asset. When a homeowner falls behind in their mortgage payments, it is a great emotional strain. Scam artists prey on an owner's desperation and give them a false sense of security, claiming they can help 'save their home.' The types of scams vary, but the end result is that the homeowner is left in a more desperate situation than before. There are three types of prevalent scams. The first is 'phantom help,' where the 'rescuer' claims that they will call the homeowner's lender and renegotiate the loan for a fee. Often the homeowner will pay the fee--but the 'rescuer' will abandon the homeowner without any intervention.”