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June 22, 2009 

California Department of Real Estate News Release 

The California Real Estate Commissioner, Jeff Davi, announced today the issuance of a Consumer Alert by the California Department of Real Estate (DRE) warning consumers about loan modification scams and informing consumers of what they can do to protect themselves. The alert has been posted on DRE’s Web site at: http://www.dre.ca.gov/pdf_docs/FraudWarningsCaDRE03_2009.pdf  and is also available in Spanish.

Loan modification scams are worrisome and widespread. July 2008, the DRE had fewer than 10 complaints involving loan modification companies; today the department has 750 pending investigations. In addition, since last October the DRE has filed over 200 Desist and Refrain Orders and Accusations involving loan modification scams and the list of offenders continues to grow. A list of the companies and persons the DRE has filed an action against can be viewed at http://www.dre.ca.gov/cons_drs.asp.