No up-front fees for mortgage loan modifications

Posted by Carrie B. Reyes | Dec 26, 2012 | New Laws, Real Estate | 0

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

About The Author

Carrie B. Reyes

is the Senior Editor at firsttuesday. Carrie obtained a Master of Arts degree in Theology, Philosophy and Ethics from Boston University. Carrie has worked at firsttuesday for 12 years and is the lead contributor for all real estate market analysis and economic content. When she’s not covering the latest real estate story, Carrie enjoys volunteering at her local animal rescue.