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Protecting your home from mortgage scams
In this article:
- Why mortgage fraud can be difficult to recognize
- Common mortgage-related scams
- How to protect yourself from mortgage scams
- What to do if you suspect a mortgage scam
- How Finance of America protects its borrowers
- The best fraud defense is taking your time
- Frequently asked questions about mortgage fraud
When most people picture a mortgage scammer, they imagine a stranger in a hoodie, hunching over a keyboard in a dimly lit room. But modern fraud often looks very different. Today’s fraudsters operate more like a business with call centers, scripts, and metrics to meet. They test what works, refine their tactics and use technology to make their communications more convincing. They are methodical, not just lucky.
Artificial intelligence has made that work easier. Fraudsters can create convincing messages, impersonate trusted institutions, and sound like people you already know. The traditional signs of credibility—clean emails, professional websites, and confident callers—aren’t as reliable as they used to be. That is precisely why understanding how modern mortgage fraud works matters so much.
The stakes are high: According to the most recent FBI reports, Americans over 60 years of age reported losing $7.7 billion to fraud in 2025, up 37% from 2024.
Your home represents more than shelter. It embodies decades of stability, investment, and family history. That’s why fraudsters target it. The good news is that recognizing mortgage fraud does not require being a cybersecurity expert—it starts by understanding what signs to watch for and being willing to slow down when something doesn’t feel right.
Why mortgage fraud can be difficult to recognize
There was a time in the recent past when spotting a scam felt fairly straightforward. The telltale signs were there: misspelled words scattered throughout an email, a website that looked hastily built, or a caller who knew almost nothing about you made it easier to recognize that something was wrong.
Today, those red flags aren’t as reliable.
Fraudsters now have access to enormous amounts of information. They may know where you bank, who services your mortgage, or the names of people and companies you trust. They may spoof a familiar phone number or send a message that appears to come from a legitimate email account. AI may make those deceptions even harder to spot, helping fraudsters produce polished emails, realistic websites, and convincing voice impersonations.
That combination of data and technology can be incredibly effective. In one recent incident I’m aware of, a fraudster contacted employees while impersonating a real member of the company’s IT help desk. The caller used the employee’s actual name, spoofed a local phone number, and directed people to a website that also appeared to be local. To the people receiving those calls, the interaction did not look like a scam.
The specific words matter less than the underlying tactic. Fraudsters understand how our brains work under time pressure. When you’re asked to act quickly, you’re less likely to pause and verify. That is why I encourage people to pay less attention to whether a communication looks professional and more attention to what the person on the other end is asking them to do.
They might say things like:
- “There is a problem with your account.”
- “Your eligibility is about to expire.”
- “A payment needs to be made today.”
- “Wiring instructions have changed.”
Any time you see those types of messages, be wary. The most useful warning sign of modern mortgage scams isn’t a typo or an unfamiliar logo. Instead, keep an eye out for any event that changes a process you thought you understood.
Common mortgage-related scams
Mortgage fraudsters do not follow a set script. While the details can vary, understanding the most common approaches can help you notice when things are not what they seem.
Mortgage relief and loan modification scams
A homeowner who is worried about making mortgage payments can be an attractive target for scammers promising an immediate solution. Fraudsters may claim they can guarantee a lower payment, modify a loan, or help you avoid foreclosure—sometimes in exchange for an upfront fee.
Signs to watch for:
- Guarantees that your mortgage payment will be reduced, or your loan will be modified.
- Demands for money before assistance is provided.
- Instructions to stop communicating with your mortgage company or servicer.
- Requests to send your mortgage payment somewhere other than where you normally send it.
Fake mortgage lender or servicer communications
Some scams succeed because the criminal pretends to be an organization the homeowner already knows. You might receive an unexpected call, email, or letter claiming there is a problem with your mortgage or that your loan has been transferred to a new servicer.
These impersonations can be harder to spot because a criminal who has compromised an email account or obtained personal information may be able to make the communication look remarkably authentic.
Signs to watch for:
- An unexpected message claiming there is a problem with your mortgage—even if it comes from an email address you recognize.
- A sudden notice that your loan or payment arrangements have changed.
- Requests for passwords, Social Security numbers, or other sensitive information.
- Contact information that differs from the information on your mortgage statement or other records you already have.
Payment and wire fraud
A criminal may compromise or imitate the email account of someone involved in a legitimate transaction and then provide new payment or wiring instructions. Because the message may appear in the middle of an otherwise legitimate process, the request may not seem suspicious.
Signs to watch for:
- A change in wiring or payment instructions for closing funds.
- Requests to send money directly to an individual.
- Requests for any payments through gift cards, cryptocurrency, payment apps, or other unexpected methods.
- Pressure to make the payment immediately.
If payment instructions change unexpectedly, stop and contact the company using a phone number you have independently verified. Do not rely on the phone number or contact information provided in the message telling you about the change.
Government impersonation scams
Fraudsters may also pose as government agencies or claim to have access to government-backed mortgage assistance. Official-looking language, logos, or terminology can make these offers seem credible.
Signs to watch for:
- Claims that you have been selected for a special government program.
- Pressure to act before an offer or eligibility period supposedly expires.
- Requests for payment to receive government assistance.
- Communications designed to look official that direct you somewhere other than a verified government source.
Title, deed, and foreclosure rescue schemes
Some of the most consequential schemes involve convincing a homeowner to surrender control over the property itself. A scammer may promise to prevent foreclosure or “save” a home if the homeowner temporarily transfers the deed, signs over title, or grants someone power of attorney.
Signs to watch for:
- Requests to sign over your deed or temporarily transfer title.
- Promises that another person or company will “save” your home.
- Pressure to sign loan documents you do not understand, or that contain blank spaces.
- Requests to grant power of attorney as part of a supposed rescue.
- Attempts to discourage you from having an attorney or another trusted person review documents.
Reverse mortgage imposter scams
Some scams target homeowners who have or are considering a reverse mortgage. Fraudsters may use the term “reverse mortgage” to lend credibility to an offer that has little or nothing to do with a legitimate reverse mortgage. A scammer might use it to promote an investment, home repair, or another financial product, or attempt to influence how a homeowner uses reverse mortgage loan proceeds.
Signs to watch for:
- Using a reverse mortgage as a condition for purchasing another product or service.
- Promises of immediate approval or claims that required steps may be skipped.
- Pressure to take proceeds in a particular form or use them for a particular purpose.
- Discouraging conversations with family members, housing counselors, attorneys, or other trusted resources.
→ Learn what to expect in the reverse mortgage application process
How to protect yourself from mortgage scams
The more sophisticated mortgage scams become, the less useful it is to rely on whether something looks legitimate. A better defense is to be prepared with a process to follow when something changes, or you are unsure.
I think of that approach in three simple steps:
- Pause: If someone contacts you unexpectedly or asks you to act quickly, stop. Do not let a sense of urgency dictate your next move.
- Verify: Contact the organization yourself using information you already trust, such as the phone number on an existing mortgage statement or an independently verified website. Do not use the phone number or link in the message you are trying to verify.
- Protect: Make it harder for scammers to compromise your information—use unique passwords and multifactor authentication, review financial and mortgage statements regularly, and be cautious with unexpected links and attachments.
Be especially cautious if someone tries to make you feel embarrassed or foolish for asking questions or wanting to verify the information. Legitimate mortgage lenders should be happy to provide more information.
What to do if you suspect a mortgage scam
If you think you may have responded to a fraudulent message, shared personal information, or sent money to a scammer, act quickly. The first 24 hours are crucial, particularly when money has been transferred. In some circumstances, a bank or financial institution may still be able to stop or recall a transaction during that window.
Here are the steps to take after a suspected mortgage scam:
- Contact your financial institution: Use a phone number you independently know to be legitimate and explain what happened. If you sent money, ask immediately whether the transaction can be stopped, recalled, or flagged.
- Secure your accounts: Create new, stronger passwords for any accounts that may have been affected and enable multifactor authentication. If you believe a criminal has gained access to your email, start there—a compromised email account may give someone access to password resets and other sensitive communications.
- Preserve the evidence: Keep emails, text messages, voicemails, phone numbers, receipts, payment information, and other communications related to the suspected fraud. Do not delete messages simply because you know they were fraudulent.
- Report what happened: Report the suspected fraud to the police and or the FBI at ic3.gov. If your identity or credit may have been compromised, consider placing a fraud alert or credit freeze at the three main credit bureaus: Experian, Equifax, and/or Transunion. The freeze is free and can be set up online.
- Tell someone you trust: Scammers benefit when people stay quiet. A family member, friend, attorney, financial professional, or other trusted person may help you think through what happened and identify additional accounts or information that need to be protected.
One last thing: Do not let embarrassment keep you from reporting the fraud. These scams are designed to be convincing, and sophisticated fraud succeeds against people of every age and background.
How Finance of America protects its borrowers
At Finance of America, protecting our customers means more than protecting systems and information. It also means helping the people we serve understand what to expect when they interact with us and giving them a trusted way to ask questions when something does not seem right.
If someone calls or emails you to change something during the application process, verify it. Contact Finance of America directly at 1-800-841-5166 or through contact information you already have, rather than through the methods provided in the message you are questioning. Ask whether the request came from us before sending money, sharing personal information, or taking another significant action.
There are other safeguards built into how we work with borrowers, including:
- Secure ways to share documents: Borrowers upload requested documents through our secure borrower portal or through a secure link provided by their loan officer. Approved fax and mailing options are also available when needed.
- Verification before sensitive information is shared: We take steps to verify who we are communicating with before sharing sensitive information and use approved methods for securely delivering documents and collecting electronic signatures.
- Training to recognize warning signs: Fraud prevention isn’t limited to technology. Our team members are trained to pay attention to circumstances or behaviors that could indicate someone is being targeted by fraud. When something raises concern, employees have a process for escalating it to the appropriate teams for further review.
The best fraud defense is taking your time
Mortgage scams will continue to evolve. The technology will change, the messages will become more convincing, and criminals will keep looking for opportunities to insert themselves wherever money is moving.
But the most important protections aren’t complicated: Slow down when something changes. Ask questions. Verify unexpected requests through a source you already trust.
In an era when fraud has become professional, caution has become wisdom. Asking questions, verifying information, and taking time to think are not signs of distrust in legitimate institutions. They are acknowledgements of what is truly at stake: your home, your security, and your family’s stability. And that is always worth the extra time.
Frequently asked questions about mortgage fraud
Is it illegal for a mortgage relief company to charge an upfront fee?
Generally, yes. The Federal Trade Commission prohibits mortgage assistance relief companies from collecting a fee until they have obtained a written offer of mortgage relief from a lender or servicer. The company must also disclose specific information, including the total cost. A demand for any upfront payment is a red flag.
What are mortgage phishing scams?
Mortgage phishing scams use fraudulent emails, text messages, calls, or websites to trick homeowners into sharing sensitive information or sending money. Scammers may impersonate a mortgage lender, loan officer, real estate agent, or another trusted organization and claim there is a problem with your account or an urgent action you need to take. Be cautious of unexpected requests for passwords, Social Security numbers, financial information, payments, or other sensitive information.
What is home title fraud?
Home title fraud occurs when someone uses stolen personal information or fraudulent documents to impersonate a property owner or improperly transfer an interest in a property. Because these schemes may involve both identity theft and real estate or mortgage fraud, homeowners should pay attention to unexpected documents, notices, or changes involving their property or mortgage.
Where should I report suspected reverse mortgage scams?
Depending on what occurred, suspected reverse mortgage scams may be reported to local law enforcement and the FBI’s Internet Crime Complaint Center (IC3). If personal information or credit may have been compromised, you may also need to contact your financial institutions and the major credit bureaus.
What is mortgage-related identity theft?
Mortgage-related identity theft occurs when a fraudster uses stolen personal information to impersonate a homeowner, lender, servicer, or another trusted party, or to gain access to accounts and sensitive communications. Be cautious about unexpected requests for passwords, Social Security numbers, or other personal details, even when the request appears to come from a familiar organization.
To learn more, please visit the Consumer Financial Protection Bureau’s (CFPB) Reverse Mortgage: A Discussion Guide.
About the author
, Chief Information Security Officer at Finance of America, brings more than 30 years of IT experience, including over 20 years leading cybersecurity teams in highly regulated industries. His expertise includes enterprise security, Zero Trust architecture, cyber resilience, AI security and automation, and technology risk governance.
Disclaimer
This article is intended for general informational and educational purposes only and should not be construed as financial or tax advice. For tax advice, please consult a tax professional. For more information about whether a reverse mortgage fits into your retirement strategy, you should consult your financial advisor.
