What law regulates activities related to residential mortgage loan modifications?

The Mortgage Assistance Relief Services (MARS) rule specifically governs activities related to residential mortgage loan modifications. This regulation was established to protect consumers from mortgage relief scams and ensures that companies offering these modification services provide transparent and truthful information to homeowners seeking assistance with their mortgage payments.

Under MARS, companies must provide clear disclosures about their services, charging practices, and any fees associated with loan modifications. It also stipulates that these companies cannot demand payment before they have successfully negotiated any loan modification with a lender. The rule is designed to safeguard consumers from fraudulent practices, ensuring that they receive legitimate assistance in modifying their loans.

In contrast, the Truth in Lending Act primarily focuses on the disclosure of credit terms and costs to consumers, enforcing transparency in lending practices. The Home Equity Line of Credit Act governs the terms and disclosures associated with home equity lines of credit, while the Home Ownership and Equity Protection Act targets high-cost mortgage loans and aims to protect borrowers from predatory lending practices. Each of these laws serves a distinct purpose but does not directly regulate mortgage loan modification activities like the MARS rule does.