The FTC released a guide titled Mortgage Assistance Relief Services Rule: A Compliance Guide for Business

Mortgage Assistance Relief Services Rule: A Compliance Guide for Business

February 2011

The FTC has released a compliance guide titled "Mortgage Assistance Relief Services Rule: A Compliance Guide for Business," aimed at businesses offering help to homeowners facing foreclosure. This guide outlines rules designed to prevent unfair practices in mortgage assistance services. Key points include prohibiting upfront fees until a written offer of mortgage relief is delivered and agreed upon by the customer and their lender. Businesses must also disclose important details upfront, such as total costs, non-affiliation with government or lenders, and potential risks like credit damage from not paying mortgages. Additionally, advising clients not to communicate with their lenders or misrepresenting services is strictly prohibited under the Rule. These guidelines are crucial for businesses to ensure they comply with FTC regulations and protect consumers seeking mortgage relief.

For more information, see here:  https://www.ftc.gov/tips-advice/business-center/guidance/mortgage-assistance-relief-services-rule-compliance-guide

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