The FTC recently issued a news release on Mortgage Assistance Relief Services, MARS, proclaiming:
FTC Issues Final Rule to Protect Struggling Homeowners from Mortgage Relief Scams
The ruling was a mere 54 pages published in the Federal Register and can be found here should you care to read the whole thing. Personally, I passed, thank you very much.
The news release explains the ruling and it does it in only one page.
In essence, it addressed the fact that there were some scammers taking advantage of peoples foreclosure plight.
It prohibits charging any advance fees until the homeowner is completely satisfied with the written offer of mortgage relief from the lender.
The mortgage relief companies must disclose that:
- they are not associated with the government, and their services have not been approved by the government or the consumer’s lender;
- the lender may not agree to change the consumer’s loan; and
- if companies tell consumers to stop paying their mortgage, they must also tell them that they could lose their home and damage their credit rating.
The rule prohibits the mortgage relief companies from making false or misleading claims.
But, perhaps the most interesting part is who the ruling does NOT apply to. The list includes attorneys and:
The Final Rule applies only to entities within the FTC’s jurisdiction under the Federal Trade Commission Act, which excludes, among others, banks, savings and loans, federal credit unions, common carriers, and entities engaged in the business of insurance.
See it here.
Hat Tip: Ron Ballard
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