Tag Archives: FTC

The Federal Trade Commission (FTC) will enact a ban on advance fees charged for loan modification and mortgage assistance rescue services starting January 31, to prevent providers of such services from collecting upfront fees from homeowners without successfully securing a loan modification. The new rule, however, exempts fees charged in advance for loan modification products, such as software systems that produce modification documentation like the technology offered by loss mitigation software provider the Loan Post, Inc.

A new Federal Trade Commission (FTC) rule bans providers of foreclosure rescue and loan modification services from collecting fees until homeowners have a written offer from their lender or servicer that they decide is acceptable. The rule also requires mortgage relief companies to provide their clients with a document describing the key changes to the mortgage that would result if the consumer accepts the offer. They must also remind consumers of their right to reject the offer without any charge.