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varga197
181 Posts |
 Posted - 07/16/2008 : 4:08:28 PM
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I see lots of loan modification companies, here and elsewhere. Does one has to be licensed to do loan mods? I know the risk of being sued and I think most of these companies affiliated themselves with an attorney or they are attorney owned, but do the people actually doing these modifications have to have a license or certificate to do this. I'm just curious.
I would like to offer loan modification to my clients/prospects but don't want to sign up with 5 middle man inbetween my client and the person doing the mods.
thanks for the info. |
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aarmstrong
49 Posts |
Posted - 07/17/2008 : 11:51:07 AM
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Hello,
I work for Loan Processing Center Inc.
We are a back-end Loss Mitigation company. Your concerns are quite valid, feel free to call me and I will go over them with you.
Thanks,
Alex
949-732-6015 |
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jloans2003
199 Posts |
Posted - 07/17/2008 : 9:28:32 PM
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| I have a contact for you direct with the owner for one of the cheapest loan mod companies around :) all you have to do is provide a name and a phone #!!! |
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LOAN_SLAMMER
486 Posts |
Posted - 07/17/2008 : 9:41:33 PM
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| make sure the person or place is a reputable law firm. |
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slants
4261 Posts |
Posted - 07/17/2008 : 11:38:02 PM
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According to crankyusi who has done a lot of research on the subject, yes you do in CA, but that may not be the case in FL. You should check with your DRE or equivalent.
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Hustler12
1206 Posts |
Posted - 07/18/2008 : 01:02:25 AM
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OP,
I may or may not be the right company for you. However, if you want some info, please let me know.
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Hustler12
1206 Posts |
Posted - 07/18/2008 : 01:03:52 AM
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| Oh, BTW, no you dont have to be licensed, but if you aren't attached to a lawyer you might not want to lease office space cause you wont be there long |
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Coronasteve
1444 Posts |
Posted - 07/18/2008 : 06:24:48 AM
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In California, the issue that most brokers face is the collecting of money in advance of any services performed. There is a requirement that you must have an advance fee agreement approved and on file with the DRE before you begin to collect money up front from the borrower.
http://www.dre.ca.gov/mlb_adv_fees.html
Florida has a similar law going into effect on October 1, 2008. |
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ritabradley01
2963 Posts |
Posted - 07/18/2008 : 09:21:38 AM
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| In CA do you just need a re license or a broker license? |
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slants
4261 Posts |
Posted - 07/18/2008 : 09:27:46 AM
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According to the DRE's link, it requires a broker's license, but I'm sure a salesperson licensee may perform modifications under his/her broker's supervision, just like any other licensed activity.
Advance Fees and Loan Modification Services
If you are behind in your mortgage payments, you may be contacted by individuals or companies that will offer to help you work out a loan modification with your lender or provide other services to you in order to help you prevent a foreclosure on your home.
You must be very careful if you are asked to pay for any of these services in advance, whether in cash or by charging your credit card. First, California Civil Code Section 2945, which regulates "foreclosure consultants", forbids anyone, including a real estate licensee, from collecting any advance fees for these types of services if a Notice of Default has been recorded against your property. If your lender has recorded a notice of default, do not pay an advance fee to anyone. There are non-profit agencies that can assist you without charging you a fee and real estate brokers who can represent you for a fee to be paid after they have completed their work. For information on non-profit housing counseling services, use the following links:
Federal Housing Administration
Hope Alliance Web site
If a Notice of Default has not been recorded against your property, it may be permissible for a real estate broker to assist you in working out a loan modification or otherwise negotiate a possible resolution to your problem with your lender or loan servicer and ask you for payment in advance for their services. However, the broker must have you sign an agreement that tells you what services will be performed, when they will be performed and how much you must pay. The broker cannot have you sign an agreement until it has been submitted to the Department of Real Estate for review and the broker has received permission to use it and collect the advance fee.
Before you pay an advance fee to anyone for assisting you, first call the Department of Real Estate at (916) 227-0770 to find out if an advance fee agreement is on file. |
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kbaker
789 Posts |
Posted - 08/14/2008 : 4:03:37 PM
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| Just got off a conference call with Mortgage Coach / Ron Quintero on Mortgage Modifications. Ron's company in partnership with Mortgage Coach has the client "hire" an attorney and put $3,500 in escrow. The attorney gets $500 no matter what and up to $1,500. The "agent" gets $2k if the mod is successful. This sounds like a circumvention of intent to me. Ron's response was that the US Constitution give the borrower the right to hire an attorney to represent them. Doesn't smell right to me. Oh, and you have to pay $1995 to get in the network. |
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Dan-NewLifeLendi
194 Posts |
Posted - 08/14/2008 : 4:14:44 PM
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You bring up a very important question. The answer is that, at the moment, licensing requirements are determined by each state. It is worth noting that the DRE has made it clear that they believe you must be licensed to conduct loss mitigation operations (what is yet to be determined is when a transaction qualifies as 'loss mitigation'. Right now it appears as though they've temporarily settled on defining it based on the Default Status of the property involved <NOD>).
With that being said, our lobbyist has just told us that the DRE is about to put some teeth on their interpretation of this (i.e. that Loss Mitigation is under their jurisdiction) and they will begin pursuing rogue companies within the next 6 weeks.
My sincere advice is that you offer Loss Mitigation services that are in compliance with your state's regulatory body.
Dan
New Life Lending
http://www.newlifelending.us
dan@newlifelending.us
"Wholesale Loss Mitigation, Loan Modification & Debt Settlement Services in 41 states. Our programs turn your impossible loans into cold, hard cash."
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