Maryland imposes new rules for agents handling short sales

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Maryland regulators say real estate agents handling short sales will be subject to rules intended to protect distressed borrowers from mortgage rescue schemes if they engage in practices that include assisting the seller in negotiating with the lender or representing that they are short-sale “experts.”

Maryland’s regulations stem from a state law that’s based on the Federal Trade Commission’s Mortgage Assistance Relief Services (MARS) rule, which prohibits for-profit mortgage-relief companies from collecting upfront fees for their services.

The FTC exempts real estate brokers and agents assisting clients in obtaining short sales from most provisions of the MARS rule. Source: washingtonpost.com.