Home Buyer Beware - Mortgage Closing Phishing Scam

Are you closing on a home purchase soon?  While many transactions are secure, it is important to confirm with your title company any requested changes related to your closing funds.  It does not hurt to ask and be right - always know where your wire is going and title companies will not "change" wire account information at the last minute via email.  Realtor and mortgage industry friends, please feel free to share. 

Until Next Time,

Craig Turley

CMC, Certified Mortgage Consultant®

Article courtesy MPA Magazine, the FTC, and NAR:

(from MPA Mag)

The Federal Trade Commission and the National Association of Realtors have issued a warning originators might want to pass on to their buyers.

According to the FTC and the NAR, there’s a mortgage-closing phishing scam going around that could leave buyers without a down payment. The scam involved hackers breaking into the email accounts of real estate professionals and consumers to access information about home buyers’ closing dates.

Once the hacker has the closing date, he’ll send an email to the buyer posing as the real estate professional or title company, according to the NAR. The scammer will say there’s been a “last-minute change” to the wiring instruction for closing funds and instruct the buyer to send the funds to a different account. That account, of course, really belongs to the hacker.

According to the FTC, buyers who fall prey to this scam could find their bank account cleaned out in “a matter of minutes” – and it’s unlikely they’ll ever see that money again.

“If you’re buying a home and get an email with money-wiring instructions, STOP,” the FTC stated in a bulletin on the scam. “Email is not a secure way to send financial information, and your real estate professional or title company should know that.”

“Buyers should be wary of sending financial information over email, downloading attachments, or responding to email requests to wire money in a real estate transaction,” said NAR President Tom Salamone.

The FTC’s top tips to avoid phishing scams

Here’s what the FTC has to say about avoiding falling prey to scams like this one:

• Don’t email financial information. It’s not secure.
• If you’re giving your financial information on the web, make sure the site is secure. Look for a URL that begins with https (the “s” stands for secure). And instead of clicking a link in an email to go to an organization’s site, look up the real URL and type in the web address yourself.
• Be cautious about opening attachments and downloading files from emails, regardless of who sends them. These files can contain malware that can weaken your computer’s security.
• Keep your operating system, browser, and security software up to date.

Stop Unwanted Mail! (and phone calls and email)

The recycle bin.  

This is where 99.5% of all my mail ends up.  Aside from eligible checks I am eligible to receive from class action lawsuit settlements, I have no use for old fashion mail.  

My bank statements, investment accounts, and travel reward card statements are all via email; or I can log on to the corresponding website and review while watching a baseball game.  Some call this multi tasking.

Utility bills?  I get notified through my bill pay when the bill is due.  No paper necessary.

 

In fact, a local credit union is paying me $200 to receive electronic statements (along with two other simple requirements).  I like "free" money.

So go green and save the earth....or at least your sanity.  

Opt out.

Here is how you can do it:

(via FTC)

Consumer Reporting Companies

If you decide that you don't want to receive prescreened offers of credit and insurance, you have two choices: You can opt out of receiving them for five years or opt out of receiving them permanently.

To opt out for five years: Call toll-free 1-888-5-OPT-OUT (1-888-567-8688) or visit www.optoutprescreen.com. The phone number and website are operated by the major consumer reporting companies.

To opt out permanently: You may begin the permanent Opt-Out process online at www.optoutprescreen.com. To complete your request, you must return the signed Permanent Opt-Out Election form, which will be provided after you initiate your online request.

When you call or visit the website, you'll be asked to provide certain personal information, including your home telephone number, name, Social Security number, and date of birth. The information you provide is confidential and will be used only to process your request to opt out.

If you don't have access to the Internet, you may send a written request to permanently opt out to each of the major consumer reporting companies. Make sure your request includes your home telephone number, name, Social Security number, and date of birth.

Experian
Opt Out
P.O. Box 919
Allen, TX 75013

TransUnion
Name Removal Option
P.O. Box 505
Woodlyn, PA 19094

Equifax, Inc.
Options
P.O. Box 740123
Atlanta, GA 30374

Innovis Consumer Assistance

P.O. Box 495

Pittsburgh, PA 15230

Mail

The Direct Marketing Association's (DMA) Mail Preference Service (MPS) lets you opt out of receiving unsolicited commercial mail from many national companies for five years. When you register with this service, your name will be put on a "delete" file and made available to direct-mail marketers and organizations. This will reduce most of your unsolicited mail. However, your registration will not stop mailings from organizations that do not use the DMA's Mail Preference Service. To register with DMA's Mail Preference Service, go to www.dmachoice.org, or mail your request with a $1 processing fee to:

DMAchoice
Direct Marketing Association
P.O. Box 643
Carmel, NY 10512

Email

The DMA also has an Email Preference Service (eMPS) to help you reduce unsolicited commercial emails. To opt out of receiving unsolicited commercial email from DMA members, visit www.dmachoice.org. Registration is free and good for six years.

So end the need to go to your mailbox on a daily basis to clear out all the junk mail.  This will make you happy and probably increase your mail man's route efficiency.  

Until Next Time,

Craig Turley
NMLS #80917

Craig Turley is a mortgage and finance consultant.  He has 20 years professional business, finance, and management experience as an entrepreneur and corporate executive.  Craig is a 1993 graduate of the University of Arizona with a degree in Business Administration, emphasis finance. 

 

FHA Annual Insurance Premium Reduction on the Horizon?

Are you currently paying FHA mortgage insurance?  If the answer is yes, combined with low rates to start the year, the time could be now to evaluate a refinance of your current FHA mortgage.  Contact me now to consider your options.

(Excerpt from MPA)
U.S. President Barack Obama is set to announce a 50 basis point reduction of Federal Housing Administration (FHA) mortgage insurance premiums to 0.85% in a speech to be delivered Thursday in suburban Phoenix, according toBloomberg.

Since the crisis, FHA fees have skyrocketed. The annual insurance premium paid by most FHA borrowers has risen to 1.35%, up from 0.55%  in 2010 — or more than $300 a month on a $300,000 mortgage. The higher premiums helped beef up the agency’s cash cushion when its finances took a hit after the housing bust.

Until Next Time,

Craig Turley
NMLS 80912