Which law prohibits advance fees on loan modification services before lender approval?

The law that prohibits advance fees on loan modification services before lender approval is the Mortgage Assistance Relief Services (MARS) Rule. This rule was established to protect consumers from mortgage relief service providers who might charge fees upfront for services that they may not be able to deliver or that could be found without assistance for free. Specifically, the MARS Rule mandates that providers cannot collect fees until a loan modification has been successfully completed and the lender has approved the new terms. This helps to ensure that consumers are not misled or financially exploited during a vulnerable time, typically when they are struggling with their mortgage payments.

In the context of the other laws mentioned, while they pertain to important aspects of mortgage practices, they do not focus specifically on the prohibition of advance fees for loan modification services. The Mortgage Disclosure Improvement Act centers around improving the disclosure of mortgage terms, the Secure and Fair Enforcement Act deals with mortgage licensing and regulation, and the Residential Mortgage Loan Act regulates residential mortgage lending but does not specifically address advance fees related to loan modifications.