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New regulations could benefit loan holders

December 28, 2010 - Individuals who wish to adjust their mortgages may benefit from new regulations that will be placed on home loan modifiers.

Lawmakers in Florida recently passed a bill that will require these professionals to have a license to open a loan modification practice as of midnight on December 31, CBS 4 South Florida reports.

The new law was enacted in response to 3,680 complaints from homeowners that led to investigations of 53 loan modification companies over the past year, the Miami Herald reports.

Florida residents who wish to start or continue providing loan modification services well be required to pay a $240 fee, pass a state-issued test and have a clean criminal record.

Tom Cardwell, Commissioner of the Florida Office of Financial Regulation, told CBS 4 the legislation is intended to "ensure Floridians only pay for loan modification services that are a true benefit, not an unrealistic promise to solve their financial problems."

Cardwell added that individuals who wish to modify their loans should avoid brokers that ask them to pay fees upfront.

Such licensure requirements may provide more comprehensive protection for current and prospective homeowners who are planning to refinance their homes to achieve a lower rate on their mortgages or cash in on earned equity.

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