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MLCS
20 Posts |
 Posted - 11/05/2009 : 08:29:16 AM
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SB94 became law on October 11, 2009
There are a lot of loan modification processing companies and law firms that are still performing loan modifications in the state of California. Some have claimed that they did their research with the DRE, law makers and their attorneys and have found a way around SB94.
This is what some companies are claming is their way around SB94:
- They revised their contracts and now accept funds upon completion of individual tasks.
- They charge $3000 for 'Research and Analysis' and then do the 'Negotiation' for free.
- They will perform a forensic loan analysis for a fee and do a loan modification for free.
- They sell Do-It-Yourself Kits.
- Any combination of the above
Here is the problem: THEY ARE ALL ILLEGAL!!
The Truth Behind SB94
No money may be collected before ALL work is completed for the modification and the client receives their modification from their lender.
If $1000 is collected, it is a felony.
Even if you are not performing loan modifications in CA but your processing company is, you are jeopardizing your clients and your business. If your processing compnay is caught, their business will be shut down - which in turn, will shut your business down. And the clients that they are processing will be left out in the cold.
The CA Attorney General, Jerry Brown, is now running for governer. He is on a political crusade to go after these companies who are still performing loan modifications for CA homeowners, shut them down and prosecute them.
What Can Be Done?
There are three options:
- Stay out of California and do not allign your company with a processing company or law firm that still accepts CA clients.
- Perform all work on the loan modification. Present the client with their modification results. Then try to collect your fee. *The problem with that is you will not get paid by the client.
- Have Financial Solutions Group show you the alternative...
Our law firm can work within the law, legally represent the homeowner and legally get paid in advance. This is based on our legal findings of a 73 year old Federal Law. Our law firm will file legal documents on behalf of the client. There will be a requirement on the servicing company/investor of the loan to respond to 20 specific points within a predetermined amount of time. If this is not accomplished within the aforementioned time frame, our law firm will seek enforcement of the 73 year old Federal Law. This will result in the dissolution of the primary lien against the subject property... the house will be free and clear.
THIS IS NOT A LOAN MODIFICATION
UPDATE: We are still waiting for legal opinions from the Attorney General's office and the CA Bar Association. We need to perform our due dillegence before we begin accepting CA clients again. We take our affiliate relationships very serious and will not expose anyone to illegal activity.
Our law firm and Financial Solutions Group strive to keep our affiliate partners 100% compliant with all present and impending legislation. |
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crankyusi
848 Posts |
Posted - 11/05/2009 : 09:30:03 AM
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quote:
Originally posted by MLCS
We are still waiting for legal opinions from the Attorney General's office and the CA Bar Association.
And maybe talk to the DRE too, since it appears you're soliciting DRE licensees. |
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ponyup360
2 Posts |
Posted - 11/21/2009 : 2:14:18 PM
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This is what DRE spokesman Tom Pool haved to say?
http://mortgage.freedomblogging.com/2009/10/31/loan-aid-firms-skirt-ban-on-advance-fees/20571/
Paragraph 6 says it is SB94 compliant to charge a fee for submitting a package to a lender. Check out Paragraph 6 |
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