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02/15/11

FTC's Mortgage Assistance Relief Services Advance Fee Ban Takes Effect

 

As of January 31, 2011, under the FTC's Mortgage Assistance Relief Services (MARS) Rule, companies that offer to help homeowners get their loans modified or sell them other types of mortgage assistance relief services are no longer allowed to charge up-front fees.  Under the rule, a mortgage assistance relief company may not collect a fee until the consumer has signed a written agreement with the lender that includes the relief obtained by the company. 

Attorneys are generally exempt from the rule if they provide mortgage assistance relief services as part of the practice of law, are licensed in the state where the consumer or dwelling is located, and comply with state laws and regulations governing attorney conduct related to the rule.

To read more about this rule, click here

For further resources on mortgage assistance relief, please see these resources: