The Department of Regulatory Affairs (DORA) is part of the executive branch of Colorado State Government. As such, they can, and do, issue edicts that can circumvent the best interests of the general public. They do not have to go through the legislative process. A little-known ‘Position’ issued by DORA has effectively punished the proficient, professional attorneys that were expert in negotiating affordable mortgage modifications for Colorado’s residents. (True; any state legislature is just as capable of passing misguided legislation, but at least the state’s residents have a chance of evaluating the consequences. Witness California SB 94.)
Since this edict was issued, two developments have rendered this Position a moot point. First, the federal Financial Reform Act specifies that attorneys may charge up-front fees for their services.
Even more importantly, the nation’s mortgage servicers have learned that they can sandbag attorneys just like individual homeowners in any mortgage modification or short sale process. The Foreclosuregate scandal has had no effect on the distressed mortgage mess. All of the mortgage modification attorneys I knew of have closed their doors.
The Federal Trade Commission issued their MARS Rule that basically duplicates Colorado’s Position 1.5 except for attorneys. The simple reality is that attorneys have run away from negotiating mortgage modifications because of mortgage servicer sandbagging anyway.
Currently, mortgage modification is a do it yourself endeavor. There’s no reason to hire a third party who can’t get any more accomplished than you can by yourself. You can afford to live in your distressed home for free while your mortgage servicer ignores you. A professional attorney cannot.
The REST Report uses bank software to calculate Net Present Value. NPV is the number the banks use to calculate the best solution for a distressed mortgage. This is always a mortgage modification or a short sale. But mortgage servicers are not adept at conveying that calculation to the mortgage investor. By including the REST Report as part of a mortgage modification or short sale application.
Every single judge who has seen the REST Report as part of a court foreclosure defense has supported it in halting a foreclosure. The results are spectacular. The REST Report has been around long enough that your mortgage servicer probably knows it.
I am a proud vendor of the REST Report. I also have an exceptional Hardship letter template. This template is proven to melt the heart of the most cold-blooded mortgage underwriter ever hatched.
Click to read more about your Do-it-Yourself Mortgage Modification REST Report
For those readers that prefer YouTube videos, try this:
Give your lender a Mortgage Modification or Short Sale Offer They Can’t Refuse
On Sept 11, 2009, the Colorado Department of Regulatory Agencies (DORA) issued a new directive on who may, and may not, negotiate mortgage modifications on behalf of individual homeowners. Because of sloppy language dealing with the amount of modifications and mortgage broker licensing on the part of DORA, no reputable attorney will attempt any mortgage modification negotiations in Colorado. This is all fallout from some attorneys that ran afoul of the law in California several months ago.
Previously proficient attorneys cited DORA ‘Position 1.5 – Loan Modifications’ as the reason they are unable or unwilling to operate in Colorado. This position specifically requires: “persons who directly or indirectly negotiate, originate or offer or attempt to negotiate or originate loan modifications for a borrower, and for a commission or other thing of value are required to be licensed as mortgage brokers.”
In a conversation with Cary Whitaker at DORA, This Position was interpreted as, “Any attorney whose majority of business is mortgage modifications.” It was unclear to the attorneys, and as of this date still unspecified as to who in the attorneys’ office (if not all of the office) was required to be licensed. As I understood my introduction to Mr. Whitaker; he is an immediate deputy to Erin Toll, the director of DORA.
Effectively, this means the better a given attorney might have been at negotiating affordable, beneficial mortgage modifications, the more they were condemned for their success. The very efficient and professional attorneys I represent (97% success) for the rest of the U. S. have said, “Adios” to offering their expertise in Colorado. Colorado just is too small to worry about. Stop and think; if you were a very effective mortgage modification attorney for the rest of the United States, why bother to do the 40 plus hours of education and almost $1000 of costs to get the certification for a puny little ill-considered state in the middle of the country? If you’re that good, you’ll focus on the real business in the rest of the distressed country.
The more I researched this dilemma, the more confused I got. The better an attorney might be, the more business and satisfied clients they might have. If there is a shred of competitive capitalism left in this country, one would have to assume the less adept attorneys would have less success; therefore less of their total business and client load dedicated to affordable mortgage modification. They are therefore free to continue to possibly practice learning their craft at the expense of current distressed homeowners.
Rocky Mountain PBS Television station KRMA has greatly publicized their cooperative effort with other non-profit agencies to help with mortgage modifications. This last month they quietly acknowledged a 10% success rate in their efforts. They are having as miserable a time with the lenders as the individual homeowner would by themselves.
I might add that the Colorado Attorney General is fully aware of the REST Report and it’s accurate, authorized calculation of Net Present Value. They must be aware of the spectacular success of this tool because they sure haven’t bothered me.
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The internet being what it is, certain search terms need to be empahasized so that you can find the best information. The REST Report is best classified as loan modification software, or mortgage modification software. It’s claim to fame is that you use it to calculate Net Present Value exactly the way the banks do, using the same software. It is best used as a do it yourself loan modification or do it yourself mortgage modification. For some reason, loan modification 2010 and mortgage relief 2010 are popular search terms.
Read DORA Position 1.5 here
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