If you have clients receiving loan modifications, this one’s for you: loan modification negotiators cannot require any fee before all services have been completed.

Business and Professional Code §10085.6, Civil Code §2944.7

Amended by S.B. No. 980

Effective: immediately

Existing law prohibits any attorney or Department of Real Estate licensee from receiving up-front fees or compensation for negotiating a modification of a trust deed secured by a one-to-four unit residence.

This prohibition has been extended through January 1, 2017.

Related article:

Attorneys and DRE licensees prohibited from collecting advance fees