Are You Using a Legal Loan Modification Company?
December 12, 2010
Are you using a legit loan modification company?
Here’s a big news flash for consumers. Did you know that as of January 1, 2011 all companies performing Loan Modifications must have a Mortgage Loan Originator (MLO) endorsement in order to legally operate? Prior to this, only a Real Estate Broker’s license was required to operate a loan modification business. This MLO license endorsement is part of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (“SAFE Act”). This federal law gave states one year to pass legislation requiring the licensure of mortgage loan originators according to national standards and the participation of state agencies in the Nationwide Mortgage Licensing System and Registry (NMLS&R).
The SAFE Act is designed to enhance consumer protection and reduce fraud through the setting of minimum standards for the licensing and registration of state-licensed mortgage loan originators. Senate Bill 36 (SB 36), which was signed into law in October 2009, was enacted in order to bring California into compliance with the SAFE Act. SB 36 requires all Department of Real Estate (DRE) real estate licensees who conduct residential loan origination and loan modifications, as outlined in the SAFE Act, to meet specific requirements to qualify for a MLO real estate license endorsement.
The SAFE Act requires loan modification companies to pass a written qualified test which covers federal and state law, to complete pre-licensure education courses, and to take annual continuing education courses. The SAFE Act also requires these entities to submit fingerprints to the NMLS&R for submission to the FBI for a criminal background check, and authorization for the NMLS&R to obtain an independent credit report.
At Loan Mitigation Advocates, we are proud to let you know that our entire company has met all the requirements and has received the MLO endorsement. It has been our pleasure helping numerous homeowners receive loan modifications and we look forward to helping many others preserve their home ownership.
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Everyday, struggling homeowners call foreclosure and loan mitigation hotlines for help on how to save their homes. This is just a small sample of a larger problem. Foreclosures, short sales, adjustable mortgages, and financial or personal hardship have wreaked havoc in the marketplace. The need for loan mitigation is paramount.
At Loan Mitigation Advocatessm, we encourage homeowners to try and resolve their situation themselves. In many cases, the homeowner realizes the complexity of the situation and that they do not have the time, connections within the lending industry or negotiation power. This is where many homeowners turn to a loan mitigation advocate. The hiring of a specialist to handle the process from start to finish can ease an already stressed situation, reaping benefits long into the future, and most importantly, help you, the homeowner, stay in your home.
CORPORATE BROKER’S LICENSE #01858172
NMLS Company ID: 376200