FTC TO ADDRESS UNFAIR & DECEPTIVE MORTGAGE PRACTICES
The Mortgage Assistance Relief Services rulemaking addresses the proliferation of loan modification and foreclosure rescue services in the current economy. The Federal Trade Commission has responded to the growth in these services with a substantial and sustained commitment to bringing law enforcement actions against those who make deceptive claims about these services to consumers in financial distress.
Public comment will allow the FTC to assess whether rules would be useful in protecting consumers of these services. The FTC is particularly interested in receiving comment on the costs and benefits of prohibiting or restricting the payment of advance fees for loan modification and foreclosure rescue services. The Mortgage Assistance Relief Services Advance Notice of Proposed Rulemaking has a 45-day public comment period ending Wednesday, July 15, 2009.
In addition, the FTC is seeking comment on a second rulemaking, the Mortgage Acts and Practices rulemaking, which addresses activities that occur throughout the life-cycle of a mortgage loan: advertising and marketing; origination, including underwriting, loan terms, and disclosures; appraisals; and servicing.
Public comment will allow the FTC to assess whether rules regarding any of these activities would be useful in protecting consumers. The FTC is particularly interested in receiving comments about mortgage servicing. The Mortgage Acts and Practices Advance Notice of Proposed Rulemaking has a 60-day public comment period ending Thursday, July 30, 2009.
Original article: FTC Begins Rulemaking to Address Unfair and Deceptive Mortgage Practices