Riverside, CA (PRWEB) October 15, 2009
In response to a new California law prohibiting sophisticated costs for mortgage loan modification services, Springboard Nonprofit Consumer Credit Management has established a particular hotline with a lot more than 50 HUD certified housing counselors to aid troubled home owners.

California Senate Bill 94 (SB 94) signed by Governor Arnold Schwarzenegger requires impact right away and prohibits any particular person, including true estate licensees and attorneys, from demanding or collecting an advance fee from a consumer for mortgage loan modification or mortgage loan forbearance solutions affecting 1 to 4 unit residential dwellings.

Springboard is a 501(c)(3) nonprofit organization founded in 1974, a HUD authorized complete housing counseling agency and a member of the National Foundation for Credit Counseling, a national organization of nonprofit credit counseling agencies. In 2008, Springboard helped much more than 58,000 troubled homeowners evaluate their housing options, open lines of communication with mortgage lenders, and determine solutions and an action plan distinct to their predicament, all at no cost to the customer. “Springboard has dedicated the hotline quantity 800-449-9402 for Californians looking for loan modification help at no expense to the consumer,” said Melinda Opperman, Springboard’s senior vice president of community outreach and market relations.

The bill, authored by California Senator Ron Calderon, stipulates that advance costs collected on or soon after October 11, 2009 have to be refunded to the customer. Additional stipulations of the bill state that it is not illegal for companies to supply loan modification services. It is illegal to gather cash or other consideration in advance. If loan modification services are supplied, specific disclosures are needed to be in the agreement. All practitioners need to become familiar with the provisions of SB 94, which carries substantial administrative and criminal penalties for violations.