Real estate licensees in California who have Advance Fee agreements on file with the Department of Real Estate can no longer can count on that as a source of government approval according to the DRE’s website (requires Adober Reader).
“If you are a a real estate broker, or the designated officer of a licensed corporation, who has been issued a “No Objection” letter by the Department of Real Estate for loan modification or other mortgage loan forbearance services, you can no longer enter into these agreements effective as of October 11, 2009, nor can you collect any advance fees for such services.”
When California Governor Arnold Schwarzenegger signed SB 94 into law, it marked the end of charging advance fees for loan modification services in California.
For American Economic Solutions, it simply means business as usual.
Recently, American Economic Solutions chose to go to a model that does not charge advance fees. This decision was made well ahead of SB 94 being signed into law on Monday. In a release earlier today, American Economic Solutions stated the following:
“For one company, however, it is a vindication of well-established business practices. American Economic Solutions has been performing California loan modification services with no advance fees since September 2009, well before Monday’s bill became law.
The San Diego, CA-based company fully completes each and every service it has contracted to perform for its clients prior to collecting any fees. This allows American Economic Solutions clients to see the results of the contracted work performed by American Economic Solutions before any payment is required.
In an industry where the norm has been to accept advance fees prior to performing any services, American Economic Solutions is a unique company that fully understands the benefits of SB 94 for both homeowners and businesses alike.”
State Senator Lou Correa who is a co-author of SB 94 is pleased to see the bill become law and thinks it will make a difference.
“I am very pleased that Governor Schwarzenegger signed SB 94 into law. This is a long-time needed legislation that will protect vulnerable and distressed home owners from becoming victims of predatory mortgage scams.”
American Economic Solutions recognizes that SB 94 cannot completely remove the threat of scam artists, however. Consumer education is vital. As such, a California SB 94 fact page has been established with the goal of educating distressed homeowners seeking assistance.