Blog Posts Tagged with Mortgages

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Looking forward to a long and productive relationship

Last Friday, the FTC and the Consumer Financial Protection Bureau signed a memorandum of understanding outlining how the agencies will work together.  The CFPB — born out of the recent financial system overhaul — and the FTC now share responsibility for protecting consumers in the non-bank financial sector.

Quoth the Maven

In celebration of Halloween — and with apologies to Edgar Allen Poe — here’s our take on what companies can do to make sure spooky business practices don’t come back to haunt them.




Once upon a midnight lawful
Pondering practices, good and awful,
Reading through the U.S. Code
For dos and don’ts I parse and claw.

I came upon the Trade Commission’s
Section 5 with all revisions.

FTC 86s LOAN MOD TXTS

FTC watchers will remember Phillip A. Flora.  In the first case of its kind, the FTC alleged that Mr. Flora was a One-Man Message Machine, churning out a “mind-boggling” number of unsolicited commercial text messages pitching mortgage modification services.  How many did he send?  According to the FTC, <Carl Sagan voice> millions and millions </Carl Sagan voice>.

Imitation is the sincerest form of falsity

According to the Consumer Services Protection Commission’s website, it’s a “National consumer protection agency and works For the Consumer to help avoid fraud, deception, and/or unfair business practices in the financial assistance marketplace.” The site went on to talk about the agency’s role in enforcing the law and educating consumers about how to “spot and avoid fraud and deception.” On the right was a blue and gold logo with the scales of justice and the winged wheel of commerce.

Closed encounters of the third kind

Savvy executives like to stay in the loop on FTC activities that could affect their industry.   They make it a habit to scan the headlines or check for relevant workshops or reports.  But there’s a third category of information a bit less understood: closing letters from BCP staff.

In the spirit of transparency, the agency posts them online.  Here in the BCP Business Center, recent letters appear in the Compliance Documents section of each topic area.

Accounts deceivable

Perhaps you see cops on the beat when they pass by your office. Maybe you serve on a committee with the Chief of Police or have a relative in the Sheriff’s Department. However you cross paths with local law enforcement, do them — and yourself — a favor by telling them about Consumer Sentinel.

Modifying the orbit of MARS, but not protections for consumers

Today, the FTC announced it won't enforce most parts of the Mortgage Assistance Relief Services (MARS) Rule against real estate brokers and their agents who help consumers with short sales. A short sale — a phrase consumers have heard a lot recently — is the sale of a home for less than the homeowner owes on the mortgage, and where the bank accepts the sale proceeds instead of foreclosing.

Room with review

Is your briefcase feeling lighter? That’s because your dog-eared copy of Volume 16 of the Code of Federal Regulations (where most FTC rules and guides live) is decidedly thinner these days. For the past two decades, the agency has undertaken a systematic review of its rules and guides to make sure they’re up to date, effective, and not overly burdensome. As each rule comes up for review, we ask ourselves — and you — four questions:

NCP Double-YOU

Break out the bubbly and raise a toast:  It's National Consumer Protection Week.  NCPW is an annual campaign sponsored by the FTC and nearly 30 other federal agencies, consumer groups, and advocacy organizations, in conjunction with state, county, and local government offices that are sponsoring events nationwide.  The goal?  To encourage consumers to take full advantage of their rights and make better-informed decisions.

Upfront fees for mortgage relief services are history

America’s homeowners just gained new protections.  While parts of the Mortgage Assistance Relief Service (MARS) Rule requiring disclosures in advertising and other communications went into effect on December 29, 2010, the ban on upfront fees kicked in on January 31st.  Now, companies that claim to help consumers avoid foreclosure or modify their loans can’t collect a penny until they get their customers what they want.

Data Security: Copi-er That!

If your company keeps sensitive data like Social Security numbers, credit reports, account numbers, health records, or business secrets, you’ve probably instituted safeguards to protect that information, whether it’s stored in computers or on paper. That’s great.  But it’s time to take those safeguards a step further.

ID-ylls of the Ring: FTC rethinks TSR’s Caller ID provisions

When the FTC amended the Telemarketing Sales Rule in 2003, it required telemarketers to transmit Caller ID information.  That policy had three benefits.  It promoted privacy by allowing people to screen out unwanted telemarketing calls.  It increased industry accountability by making it harder for companies to remain anonymous.  And it helped law enforcement by making it easier to identify fraudsters and companies who violated the Do Not Call Registry.

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