As the Obama administration continued to hammer out details of its foreclosure prevention program with major banks, the Treasury Department on Monday unveiled a coordinated plan to thwart loan modification fraud schemes that are cropping up around the country.

The Treasury is acting along with the Federal Trade Commission (FTC), the Department of Housing and Urban Development (HUD), the Justice Department and state officials to prosecute or disable businesses that claim to be able to secure loan modifications from lenders for up-front fees. In statements to the press, officials from the agencies urged borrowers to contact their lenders directly or seek help from free credit counseling services or from state agencies.

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