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| Upfront Fees for Loan Modifications are a Crime! By Annette Gomez, LDA |
On October 11, SB 94 became law, which imposes various restrictions on Loan Modification companies. Since
these companies entered the marketplace, I have been solicited by several of them, for the purpose of gaining
access to my clients in need. Although I spoke in depth with a few of them, I found no one who I would refer my
clients to. This month, the California State Bar named 16 attorneys who are under investigation for fraud in the
field of loan modifications.
In addition, our Govenor signed 7 other mortgage laws to protect you. For more info look at AB260 which puts
more restrictions on mortgage brokers, and bans negative amortization loans, SB36 which requires more from
home loan originators, SB239 which make loan application fraud a felony, AB439 which requires clearer
language to reverse mortgage inquiries, SB237 which requires registration for appraisal firms, AB957 which
allows buyers of foreclosed homes to choose their own escrow companies, and AB 1160 which calls for loan
documents to be written in the same language that negotiations were made in.
these companies entered the marketplace, I have been solicited by several of them, for the purpose of gaining
access to my clients in need. Although I spoke in depth with a few of them, I found no one who I would refer my
clients to. This month, the California State Bar named 16 attorneys who are under investigation for fraud in the
field of loan modifications.
In addition, our Govenor signed 7 other mortgage laws to protect you. For more info look at AB260 which puts
more restrictions on mortgage brokers, and bans negative amortization loans, SB36 which requires more from
home loan originators, SB239 which make loan application fraud a felony, AB439 which requires clearer
language to reverse mortgage inquiries, SB237 which requires registration for appraisal firms, AB957 which
allows buyers of foreclosed homes to choose their own escrow companies, and AB 1160 which calls for loan
documents to be written in the same language that negotiations were made in.