Any reader that does more than a cursory serch for unbiased information on mortgage modifications discovers the Mandelman blog. A little more digging reveals that it is written by Martin Andelman. The guy knows more about the mortgage modification industry than anyone. Unlike me, he has no financial interest in mortgage modification. He simply researches and writes about it. I look to his blog daily to often find ideas to write about on this blog.
Martin Andelman, aka Mandelman, recently spoke at a conference held by the American Bar Association Consumer Financial Services Committee held in Park City, Utah. This year’s conference was focused on the foreclosure crisis and loan modifications. He was invited to be a speaker participating on a panel that included other attorneys with various areas of expertise. That highlight alone should indicate his level of legal regard, reputation, and knowledge.
Tom Pahl of the Federal Trade Commission (FTC) was there and caught Mandelman’s attention speaking about his involvement in enforcement actions against loan modification scams, among other things.
Mandelman gave a predictable positive account of the goodly number of national attorneys that are sincerely involved in beneficial and affordable mortgage modifications. Tom Pahl then got back up to speak about how hard it was for the Federal Trade Commission (FTC) to spot the ‘good guys.’ They only hear about the ‘bad guys.’ Mandelman, who researches and writes about the good guys acknowledged as much. When pushed for a number, Mandelman stated that he knew as many as 70 attorney firms that were successful and ethical in negotiating those beneficial and affordable mortgage modifications.
It was pointed out that The Dept. of Housing and Urban Development (HUD) simply did not have the bandwidth to handle the millions of homeowners that would need help in the years ahead. What should have been added is that these same counselors do not actually do any negotiating with the ubiquitous treacherous lender; they just instruct the process. They do not have any of the real phone numbers or access to the decision-makers at the lenders. They can do little to help avoid the labyrinth the lenders put out there to obfuscate and confuse the hapless distressed mortgage holder. In the most recent congressional accounting report it showed that HUD has helped roughly 880 homeowners this past year. Considering there were something north of 3 million foreclosures last year, this is a drop in the bucket.
Since this meeting it is obvious that attorneys can’t do anything the private homeowner or HUD counselor can do. The only solution is the REST Report. Beat the lender over their head with their own software.
I haven’t been able to put my arms around Mandleman’s conclusion yet, but the main point is:
“If any private sector attorney thinks that he or she can practice autonomously, hidden away in a little box, pretending to exist under some sort of imaginary radar… and that somehow federal or state regulators are supposed to know that they’re practicing law in a legitimate and ethical fashion, delivering a great deal of value to their clients… well, that’s just terribly naïve, period.”
Congress had decided to turn the topic of loan modifications over to the FTC to make federal rules. Those rules culminated in the MARS Rule, adopted at the end of January, 2011. There are two legislative proposals in congressional committee that pretty much mirror the two bills that California debated this past year, SB 94 and AB 764.
Mortgage banking compliance attorney Julie Greenfield was also on the panel, and she delivered a compelling talk on why forensic loan audits are often not delivering any value to the homeowners who purchase them. Julie also voiced her displeasure at how the new law, created by California’s SB 94 bill, restricts attorneys representing homeowners at risk of foreclosure by disallowing them from accepting client funds into a trust account in advance of work being completed. Julie’s an expert in areas like Truth in Lending and RESPA, and has worked as in-house counsel for institutions ranging from Lehman Bros. to Option One.
In fact, statistics show there is an 85 percent chance of serious RESPA violations in any mortgage contract written since 2000. It’s a good investment anyway. More importantly, it really doesn’t matter. A forensic loan audit is just a tool to get the treacherous lenders to negotiate a beneficial mortgage modification in good faith.
Mandelman goes on to make a striking and vivid argument for legal representation in a mortgage modification, short sale or even a foreclosure. Since then, it is obvious to us that the huge majority of distressed mortgages don’t need legal representation to resolve. They just need the REST Report. Once the REST Report is run, finding an attorney for any other mortgage issues will be easy. All the work will have been done for them.
This YouTube video says it all. Go here: How to Get A Beneficial Mortgage Modification Now
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tags: do it yourself mortgage loan modification, avoid foreclosure,foreclosure alternatives,stop foreclosure, prevent foreclosure,mortgage loan modification colorado, mortgage loan modification nevada, mortgage loan modification arizona, mortgage loan modification new mexico, mortgage loan modification california, mortgage loan modification georgia, rest report, federal trade commission,
Originally posted 2010-01-26 22:13:09. Republished by Blog Post Promoter
{ 3 comments… read them below or add one }
There are no “serious” RESPA Violations! Sounds like a scam.
I encourage you to follow the link to Mandelman’s blog and post. No one ever questions Mandelman’s intent. Let me know after you’ve read his post.
What is a ‘loan settlement’?