Wednesday, September 21, 2016
ADVANCE FEES FOR LOAN MODIFICATION SERVICES
"Enacted in 2008, the Foreclosure Prevention and Responsible Lending Act is a comprehensive law that addresses various issues relating to the foreclosure crisis, including predatory subprime lending, the foreclosure process, foreclosure prevention, mortgage fraud, and loan modification scams. The law prohibits the upfront payment of fees by consumers to distressed property consultants. In December 2009, parts of the law were amended to limit exemptions from the scope of the law. Licensed attorneys who provide distressed property consulting services in the course of their legal practice are still exempt, but licensed attorneys who provide those services outside of their legal practice are not."