Advance Fees for Loan Modifications Now Prohibited (Effective immediately)

On October 11, 2009, Governor Schwarznegger signed Senate Bill 94 (Calderon), and the legislation took effect immediately upon his signature. This bill prohibits any person from demanding or collecting an advance fee from a consumer for loan modification or mortgage loan forbearance services (This Includes Attorney’s and their Retainer Fee). An advance fee is any fee for services demanded or collected prior to the services being completed.