FTC Rule Bans Up-Front Fees for Modifications

FTC Rule Bans Up-Front Fees for Modifications

DS News just informed me, that "The Federal Trade Commission has proposed a new rule that would prohibit third parties, including loan modification specialists and loss mitigation attorneys, from collecting payment for foreclosure prevention services until after they obtain a documented offer from a lender or servicer for a modification or other form of mortgage relief."

I think this is great news. You know I'm against anyone paying anyone for a loan modifification, since it's something anyone can do on their on. However, if they choose to be lazy, than ayone taking on the task should only be paid for accomplishing a loan mod, not just faxing over income and asset documentation.

I'll be keeping my eye on this one.