California Loans News

California loan modification market law firm American Mitigation Law Group (AMLG) said that amidst signed laws protecting consumers, education for the homeowners is very much vital in making the laws in full effect. The law firm was one of the proponents of Senate Bill 94 (SB 94 or No Advance Fee Loan Modifications Law), which prohibits loss mitigation companies and mortgage servicers like agents and lawyers to charge advance fees prior completion of their tasks.

The company is also “hopeful that (through SB 94) cases of fraud in the industry will be significantly reduced as firms are held more accountable for how they charge for their services.” And they also reminded consumers that “homeowner education is every bit as vital because fraudulent companies can manipulate those that haven’t been properly educated on the issue.”

For one, the California Department of Real Estate (DRE) has released a list of companies that were given letters with “No Objection” in their advance fee-based contract. The DRE website stated that these agreements are not valid anymore due to the implementation of SB 94.

To propagate such information, the AMLG has included an SB 94 Frequently Asked Questions resource in its home loan modification website. Site visitors and users could click on the “Resources” tab across the top menu and select “California SB 94.” The questions and answers in the AMLG site’s FAQ are targeted to “help those in need of a loan modification better understand SB 94 and prepare themselves for any discussion with a loss mitigation firm.”

The AMLG company also advised homeowners that there are already many firms “struggling to become compliant with new regulations” under the said law. On one hand, AMLG is performing business as usual but now in observance of what the bill requires.

Real estate market analysts said that instead on being just compliant, companies should focus its efforts to the client’s needs to continue providing resources and assistance for those who are really in difficulty paying up their loans.

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