State bans advance fees for loan mod help

Over 1,000 California brokers had OKs to collect upfront fees

Get smarter. Grow your referral network at Inman Connect San Francisco
Limited seating still available, July 17-20

California has joined nearly two dozen other states in prohibiting foreclosure rescue companies from collecting advance fees for helping homeowners negotiate mortgage loan modifications.

Gov. Arnold Schwarzenegger on Oct. 11 signed into law a bill, SB 94, that prohibits any person from demanding or collecting an advance fee from a consumer for loan modification or mortgage loan forbearance services.