Is MARS Waning for Realtors?
MARS (Mortgage Assistance Relief Services) Rule was enacted by the FTC earlier this year as a way to protect distressed homeowners who were using these type of services. It appeared that it was aimed largely at those providing loan modification services, but the FTC also indicated that it included real estate agents in these rules which require certain disclosures and forms in all advertising and many interactions with clients.
Real estate agents have argued that they should not be lumped in with loan modification providers as the mortgage relief services provided by real estate agents were typically an adjunct to attempting to sell a property.
Today, the FTC announced that they will not generally enforce MARS with regards to Realtors. However, Realtors must still comply with MARS prohibitions against misrepresentations, and unfair and deceptive practices. The FTC further stated that they didn't want to inadvertently discourage Realtors from helping distressed homeowners with a short sale.
While I am encouraged by this, I will await further clarification as "generally not enforcing" is great, but leaves things a little less clear than the attorney in me finds comfortable.
What are your thoughts on the FTC's change of direction on MARS? Is it waning?
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About the author: Christine Donovan is a California Residential Real Estate Broker with experience in assisting clients buy and sell residential real estate.
Are you upside down in your home? Is it worth less than you owe? Are you concerned about making your mortgage payment? For more information see Options to Foreclosures, understanding short sales or contact me at christine@donovanblatt.com to discuss your options.
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Disclaimer: All information in this blog is deemed reliable but is subject to change at any time and is not guaranteed to be accurate nor are there any warantees either express or implied. This blog is not intended to offer any legal, tax or other advice.
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- You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender [or servicer]. If you reject or accept the offer, you do not have to pay us.
- Christine Donovan, DonovanBlatt and Donovan Group are not associated with the government, and our service is not approved by the government or your lender; and
- Even if you accept this offer and use our service, your lender may not agree to change your loan.
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