“These predators are now preying on good, hard-working people who have been victimized by this economy,” said Attorney General Peter Kilmartin.

“As many Rhode Islanders struggle to make ends meet, they become more and more vulnerable,” said Richard Godfrey, executive director of Rhode Island Housing, a partner in the local Loan Modification Scam Alert Campaign.

“Loan-modification scammers prey on homeowners in their time of need, knowing they will often take drastic measures to save their home. It’s important to let Rhode Island homeowners know that free help is available.”

The local campaign has 10 tips to help homeowners seeking foreclosure-prevention assistance this year:

• Contact your lender as soon as you begin having trouble paying your mortgage.

• Determine your options by speaking to your lender’s loss-mitigation department.

• Be patient but persistent with your lender because getting a loan modification takes time.

• Call a local HUD-approved counseling agency. HUD-approved counseling agencies provide loan-modification assistance services for free. Visit www.hud.gov for a list of local HUD-approved counseling agencies.

• Meet with a counselor at a HUD-approved counseling agency. Trained counselors are available to provide assistance in several languages.

• Beware of loan-modification scams. Some companies and individuals are out to take advantage of homeowners seeking modifications.

• Avoid anyone who asks for a fee prior to providing any loan-modification service, including companies, individuals and even some lawyers.

• Avoid anyone who guarantees to get your loan modified or stop a foreclosure, because nobody has the power to make this promise.

• Avoid companies that tell you to stop paying your mortgage and to pay them instead. This is a sure sign of a scam.

Report loan modification or foreclosure scams at any time by visiting www.LoanScamAlert.org

For more than a year, the insurer has been preparing the offer on the bonds, whose values have soared despite rising foreclosures on the underlying loans. An index of top-rated subprime securities has rallied more than 50 percent since the depths of that market in April 2009, according to Amherst Securities Group.

The New York Fed would make a profit of about $1.5 billion on the portfolio, AIG said.

“It shows you how far we have come from the fall of 2008,” said Jesse Litvak, a managing director at Jefferies & Co. in Stamford, Connecticut.

“I also think that this is far from being final, and I imagine a lot of others are scrambling to see what the value of this portfolio could really be worth.”

Many investors have resorted to taking on more risk across mortgage, corporate and emerging market bonds to meet desired returns — opening debate over whether the rally in prices has gone too far. A deteriorating housing market and more onerous foreclosure procedures may result in greater-than-expected losses on the bonds, some investors have said.

An investigation of loan servicing at banks may produce a settlement that could prolong foreclosures, reducing cash flow to bonds. But changes sought by states attorneys’ general may be too difficult to apply.

At Chase Mortgage, 15-year fixed loans and 5-year ARMs decreased under their home purchase program. 30-year fixed loans and 7-year ARMs decreased under their refinance program.

5-year ARMs, 30-year fixed rates, interest only and 5-year ARMs interest only all decreased at Bank of America under their purchase program. Under their refinance program, 30-year fixed rates, 5-year ARMs and 5-year ARMs interest only all decreased.

It appears that only 10-year fixed rates decreased today at US Bank. The only other changes seen for their 3 and 5-year ARMs.

Wells Fargo Home Purchase Rates:

30-year fixed: 4.875%%
30-year fixed FHA: 4.750%
15-year fixed 4.250%
5-year ARM: 3.375%
5-year ARM FHA 3.750%

Wells Fargo Refinance Rates:

30-year fixed: 4.875%
30-year fixed FHA: 4.750%
15-year fixed 4.250%
5-year ARM: 3.500%
5-year ARM FHA 3.750

Chase Mortgage Home Purchase Rates:

30-year fixed 4.875%
15-year fixed: 4.000%
7/1 ARM 3.750%
5/1 ARM 3.125%

Chase Refinance:

30-year fixed 4.875%
15-year fixed: 4.125%
7/1 ARM 3.750%
5/1 ARM 3.250%

Bank of America Home Loan Purchase Rates:

30-year fixed 4.750%
5-year ARM 3.000%
30-year fixed rate, interest only 5.125%
5-year ARM, interest only 3.375%

Bank of America Refinance Rates

30-year fixed 4.750% decrease
5-year ARM 3.125% decrease
30-year fixed rate, interest only 5.375%
5-year ARM, interest only 3.500%

US Bank Fixed Rates

30-year fixed 4.625%-4.875%
20-year fixed 4.375%-4.750%
15-year fixed 3.875%-4.250%
10-year fixed 3.750%-3.875%
FHA 30-year fixed 4.750%
FHA 15-year fixed 4.250%

US Bank ARMS

3-year ARM 2.500% – 3.125%
5-year ARM 3.000% – 3.375%