BrokerageIndustry News

Short-sale agents get MARS exemptions

Provision relating to misrepresentations still in effect

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The Federal Trade Commission says it will exempt real estate brokers and agents assisting clients in obtaining short sales from most provisions of new rules intended to protect consumers from foreclosure rescue scams.Real estate brokers and agents complained that the "consumer specific" disclosure forms the FTC introduced as part of its Mortgage Assistance Relief Services (MARS) rule were confusing, because they addressed services provided by loan modification companies, not real estate agents."You may stop doing business with us at any time," the FTC's model language for one disclosure reads. "You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer). If you reject the offer you do not have to pay us. ... Even if you accept this offer and use our service, your lender may not agree to change your loan."The FTC says it will exempt licensed brokers and agents assisting clients with short sales from the disclosu...