This is surprising.
1 year after Dodd-Frank bill was passed…we’re already seeing back lash. The confusing and tedious disclosure required by the Federal Trade Commission for any parties offering Real Estate Short Sale guidance is going away.
It was confusing to say the least and difficult to interpret to anyone. and I mean anyone…Kim and I have challanged National Association of Realtors offices in Washington DC with interpretation and no one in the DC, including attorneys can interpret the law.
So, we say “au revoir” to another government debacle.
Is Dodd-Frank next?
Here is the story as reported by Inman
The Federal Trade Commission says it will exempt real estate brokers and agents assisting clients in obtaining short sales from most provisions of new rules intended to protect consumers from foreclosure rescue scams.
Real estate brokers and agents complained that the “consumer specific” disclosure forms the FTC introduced as part of its Mortgage Assistance Relief Services (MARS) rule were confusing, because they addressed services provided by loan modification companies, not real estate agents.
“You may stop doing business with us at any time,” the FTC’s model language for one disclosure reads. “You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer). If you reject the offer you do not have to pay us. … Even if you accept this offer and use our service, your lender may not agree to change your loan.”
The FTC says it will exempt licensed brokers and agents assisting clients with short sales from the disclosure requirements, which took effect Dec. 29, and also from a ban on the collection of upfront fees, which was put in place Jan. 31. Short-sale brokers and agents will continue to be subject to MARS prohibitions against making misrepresentations to clients.
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