In FinCEN's recently released guidance (Fin-2009-A001) they listed red flags to watch out for that may warrant the filing of a SAR in connection with foreclosure prevention/loan modification scams. One of the red flags states: "A homeowner says he/she paid someone to assist in getting help from the right Federal affordable housing program."

What is this Federal Affordable Housing Program? Is it a known scam or something? I want to be able to explain this when we go over it with the loan officers.

The point isn't that a particular federal program is involved. The point is that someone wants to charge a fee to help the target get help from the correct program. It's a red flag.