Mortgage Assistance Relief Services (MARS) Rule Disclosures

7-18-2011:  More updates and new stories about relaxation of rule for real estate gents under MARS - http://www.mortgageorb.com/e107_plugins/content/content.php?content.9178

7-16-2011:  Many of the provision of the MARS rule is no longer applicable to real estate agents.  The power of National Association of Realtors' lobbying efforts?  Or just a "kindler or gentler" US Government and Administration?   Source:  http://www.ccireports.com/company/newsarticle.asp?ArtID=147533

MARS became effective December 29, 2010

In response to the mortgage crisis, government and private sector programs have been initiated to assist distressed homeowners. In March 2009, the Obama Administration launched the Making Home Affordable (MHA) program and the MHA’s Home Affordable Modification Program (HAMP), through which the government provides mortgage owners and servicers with financial incentives to modify and refinance loans.


Among other things, the proposed rule included provisions that would:

1. Prohibit MARS providers from making false or misleading claims;
2. Mandate that providers disclose certain information about their services;
3. Bar the collection of advance fees for the provision of MARS, except in certain circumstances for attorneys who collect them in connection with preparing or filing documents in bankruptcy, court, or administrative proceedings;
4. Prohibit anyone from providing substantial assistance or support to another they know or consciously avoid knowing is engaged in a violation of the rule; and
5. Impose record keeping and compliance requirements.

Under the program, The Federal Trade Commission (FTC) requires that the advertising short sales need to "clearly and prominently" disclose two things:

"(...Your company/broker name...) is not associated with the government, and our service is not approved by the government or your lender";

and

"Even if you accept this offer &use our service, your lender may not agree to change your loan."


Source:  http://realtytimes.com/rtpages/20110607_disclosure.htm

Source:  http://www.ftc.gov/os/fedreg/2010/december/R911003mars.pdf

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