16 CFR Parts 317 and 318: Mortgage Assistance Relief Services Rulemaking #542309-00018

Submission Number:
Ray Williams
Greenway Capital Management
Initiative Name:
16 CFR Parts 317 and 318: Mortgage Assistance Relief Services Rulemaking
As a provider of Loan Modification Assistance services, I beleive that it is necessary to put into place rules and regulations that require any individuals or companies that employ or contract such individuals that provide consumers with "Loan Modification Assistance" services be required to attend some type of live-trainig and be licensed (via testing) in any State(s) that they conduct business. No individual or company should be exempt for such licensing requirements. In addition anyone providing such services should have contracts that spell-out exactly what they do, have a 3-day cancellation clause, clearly explain to homeowners that they "Do Not" and "Can Not" in themselves modify mortgage loans. They must clearly explain that they or providing a "Service of Convience". Fees No individual or company should be allow to charge a few based on the home value or the amount of a mortgage payment. Any "Junk" fees i.e, processing, administration, consulting, etc, should be reasonable and limited to $100.00 or less. Up-front fees should be limited to 50% or less of the total amount charged. Licensing Required licensing should be a "National License" rather than State in order to assure that everyone is on the same level. Such licensing should be valid for a period of two (2) years and should be renewable every two years thereafter. Providers of Training Any provider of Loan Modification Assistance training should be licensed and approved on a nation level, with each provider having to submit training materials for approval. Any approved providers must be able to demostrate that they are able to provide a level of traning that will be benefical to licensees as well as consumers. Any training provided should enclude: Understand the mortgage industry Understanding the role of servicers Understanding the role of Loss Mitigations Understanding the foreclosure process Understanding foreclosure prevention options Mortgage Modification Assistance Ethics Guarantees No company or individal should be able to state that they "Guarantee" they can get mortgage payments lowered. Advertising No company or individual should be able to advertise that they have any "Special" relationships with servicer or lenders unless these relations exsist. Nor should they advertise or indicate that they are backed by an attorney or law firm. By employing strict standards in this new and growing industy it is important to regulate it before it get out-of-hand as did the mortgage origination industry prior to required licensing. Base on my experience in calling various companies that are offering loan modification services it is quite clear that too many of these companies are not experienced or qualified, nor do they have any intentions of providing benefical services to homeowners. In my opinion, the only way to curtail this growing problem is to regulate the industry nationwide ASAP.