MobileRJ | RSS TwitterTwitter FacebookFacebook E-mail Alerts
Home manage Las Vegas Review-Journal
  Jobs Cars Homes Shopping Travel Weddings Golf Best of Las Vegas Photo   Search:

RECENT EDITIONS
Wed Thu Fri Sat Sun Mon Tue

Breaking News
Sep. 29, 2009
Copyright © Las Vegas Review-Journal

Deadline nears for mortgage modification consultants to get license

JOHN G. EDWARDS
LAS VEGAS REVIEW-JOURNAL

Nevada’s emerging home mortgage modification industry is running into a big hurdle just as it starts to operate under a new law.

A new state law requires home loan modification and foreclosure consultants to obtain licenses from the mortgage division. While 50 applications are being processed, none of the applicants has posted the required $75,000 surety bonds, according to the division.

Most Popular Stories
  • Obama dings Las Vegas — again
  • Obama dings Las Vegas — again
  • Tourist describes chaos as car plows into Laughlin casino, killing two
  • Tourist describes chaos as car plows into Laughlin casino, killing two
  • Shutting down the Ritz
  • Shutting down the Ritz
  • Former commander of USS Cole considers run against Reid
  • Flood advisory for Las Vegas Valley
  • BUDGET CRUNCH: Schools superintendent says proposed cuts would cost 2,322 teacher jobs
  • BUDGET CRUNCH: Schools superintendent says proposed cuts would cost 2,322 teacher jobs
  • Son of police officer critical after accidentally shooting himself
  • Son of police officer critical after accidentally shooting himself
  • Relatives remember grandmother killed in Laughlin accident
  • Gang member sentenced to prison in 2007 slaying
  • Some community leaders say Goodman overreacted to Obama's latest Las Vegas comment




    • The deadline to post the bonds is Thursday, and anyone who continues operating without a bond could be fined.

    Those who have not already started the process to post a surety bond probably will miss the Thursday deadline, said Elisabeth Daniels, a spokeswoman for the Mortgage Lending Division.

    AAA Home Rescuers made arrangements to obtain the required bond on time for about $7,500, said managing partner Mandy Peacock.

    However, Peacock doubts many other mortgage modification and foreclosure consulting firms will meet the deadline.

    “Many people weren’t aware of the deadline,” she said.“This whole process, because it’s brand new, hasn’t been clear on deadlines and guidelines.”

    Mortgage Division Commissioner Joseph Waltuch said in a statement that the division has reminded the industry about the bonding requirement at least three times.

    “Our goal is to do all we can to help businesses meet their legal obligations and at the same time ensure that Nevadans receive the services to which they are properly entitled,” Waltuch said.

    The state requires the bonds so that consumers have additional sources of compensation if a broker, mortgage modification or foreclosure consultant violates the law and causes them damages.

    Peacock said some competitors wrongly think the bonds they posted to operate as consumer credit counselors would allow them to operate as mortgage modification counselors too.

    In addition, the division has 326 licensed mortgage brokers who are required to post bonds by Thursday.

    These include businesses that originate home mortgage loans for consumers and also hard-money lenders, who solicit investor money to make short-term loans to developers and others with real estate collateral.

    The division has received bonds from six mortgage brokers plus another 12 bonds that have deficiencies. Mortgage brokers must obtain $50,000 bonds for their principal office plus $25,000 for one or more branches.

    The typical $50,000 bond for a mortgage broker costs $3,500 to $7,000, leading some to wonder if many brokers are going to allow their licenses to lapse.

    Vestin Mortgage, one of Las Vegas’ larger hard money lenders, is obtaining a new bond, said spokesman Steve Stern.

    “I do not believe that (the bond requirement) will have that much effect on mortgage brokers,” Stern said.

    “A $50,000 bond is not that expensive and somewhat easy to get. The bond requirement is not really new (for mortgage brokers),” he added.

    Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.

     

    Newsvine Digg Fark Technorati reddit StumbleUpon del.icio.us Slashdot Propeller Mixx Furl Twitter MySpace Facebook Google Bookmarks Yahoo! Bookmarks Windows Live Favorites Ask MyStuff myAOL Favorites

    Leave Your Comment 13 Reader Comments
    Terms & Conditions
    The following comments are provided by readers and are the sole responsiblity of the authors. The reviewjournal.com does not review comments before publication nor guarantee their accuracy. By publishing a comment here you agree to abide by the comment policy. If you see a comment that violates the policy, please notify the web editor.

    Some comments may not display immediately due to an automatic filter. These comments will be reviewed within 48 hours. Please do not submit a comment more than once.
    Current Word Count:

    Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background.

    Too_much_government wrote on September 29, 2009 09:13 PM: A new state law requires home loan modification and foreclosure consultants to obtain licenses from the mortgage division.

    Knock out low priced competition. Here are the new law's details. Notice how those "less government" Republicans unanimously voted YEA.


    Fair and Balanced Fred wrote on September 29, 2009 07:31 PM: Ian Jew offers no info below except an advertisement for Ian Jew. Don't be Jew-d.


    Ian Hirsch wrote on September 29, 2009 07:12 PM: While many bad actors have been present in the industry, there are many companies that do actually help people keep homes. Fortress Credit Services posted the required bond as well as the additional requirements for final licensing.
    You may do your own research on any firm that makes claims on what they are licensed to do, as well as conduct a check with the BBB www.vegasbbb.org
    Fortress Credit Services has been a licensed debt adjustment agency since 2007, completing its first modification two years ago. While it is easy to say that you can do your own modification, there are many complexities and roadblocks that the mortgage companies put out in your way. For some, the time involved, documents needed, and the unease of putting the required effort is just too much. You would be practicing on yourself. Please go to www.fortresscreditservices.com and look at the video testimonials. You may be surprised.
    Whichever way you go, remember, when the bank starts out the conversation with: "we are a debt collector and any information may be used for that purpose" be careful what you say.
    Ian Hirsch
    702-363-7977


    Fair and Balanced Fred wrote on September 29, 2009 07:05 PM: Oh Bull. Just follow the Republicons and their oh so wise deregulation of everything. We don't need to add more big brother regulation to the God-fearing, patriotic, mortgage refinance industry. God Bless America.

    Are you part of the global economic near meltdown? GLOBAL. Did your fall for a slick, official-sounding home equity loan backed by an official-sounding, Republicon-sounding, loan outfit that is still eating its meat (you) while Obama and the Democrats saved the globe from the brink of financial disaster?

    The Republicons are still laughing at you, and trying to sell you private health insurance as they continue to SKIM huge amounts off the top, just like the mafia.

    The entire industrialized world offers public health insurance. They are out-of-step. The United States is in-step.

    Why can't the rest of the industrialized world get with it?


    lee wrote on September 29, 2009 05:26 PM: WILLIAM

    The article states this Thursday, this Thursday is 0CTOBER 1ST 2009.

    They have reported correctly, maybe you should read correctly.


    Ann wrote on September 29, 2009 04:17 PM: Now that everyone is so quick to judge..would someone please clarify if they are talking about modification consultants or mortgage brokers, because the article references two totally different "officers"..So is it modification consultants who are not bonded? Or is it Mortgage brokers? And for the record, some borrowers can do it on their own, and some can't..And some get taken advantage of by the lenders by no fault of their own..So letting a licensed expertise negotiate in their behalf, may be to their benefit.


    William wrote on September 29, 2009 04:02 PM: THIS POST IS A RESPONSE TO THIS ARTICLE. FOR THE RECORD, MODIFICATION COMPANIE HAVE UNTIL 0CTOBER 1ST 2009 TO POST THE BOND REQUIREMENTS. PLEASE DON’T BE SO QUICK TO REPORT INFORMATION THAT YOU HAVE FAILED TO INVESTIGATE. YOU’RE MAKING IT DIFFICULT FOR LEGITATMATE COMPANIES WHO TRULY HELP HOMEOWNERS BY POSTING MISSINFORMATION.


    Guru wrote on September 29, 2009 03:59 PM: These "loan mod" outfits cannot do anything a borrower cannot do, and most are scams. So, I am not surprised in the failure to put their money where their big mouth is. This says alot about the the lack of results in loan mod. Every Tom, Dick and Harry was applying with cute names like "Homes R Us". It is truly SCARY!

    Let me call "Loan Mod" was it hoped to be: loan DISCOUNT. No lender (like any other frikin business) is required to Discount (rate or principal). To those who get a discount, consider yourself lucky. End of story.


    Neil Gilfillan wrote on September 29, 2009 03:57 PM: This city is a joke. It's always one step forward and two steps. People are hurting, badly, and these companies are flaking or playing games. Just incredible.


    Waitaminute wrote on September 29, 2009 03:52 PM: It sounds like a lot of potential scammers got scared off by the $75K bond requirement. Of course they didn't post it because they never intended to help anyone but themselves.


    Read All Comments