Posted by Ilene C. Seidel on 4/13/10 2:41pm
Msg #331518

Maryland Closing agents

I just spoke to the DLLR for state of Md. Enforcement told me a lawyer cannot collect up front fees for loan mods as a regular part of the practice. They must be licensed by DLLR to operate as a Loan Mod company. The only way they can get away with doing a loan mod without a license if the borrower is a regular client of the practice and asks the lawyer to represent them for a loan mod. They can't "hang out a shingle advertising loan mod.'s" without a license.

Reply by BossLadyMD on 4/13/10 8:19pm
Msg #331602

See Message # 331171 (for further info)

Yep - that is correct. It must be something the attorney is doing for his clients as their attorney, not as a loan mod company/business.

-----For a list of individuals and entities which are excluded from being considered “credit services businesses” under the MCSBA, and which are thus exempt from the licensing and other MCSBA requirements, see CL § 14-1901(e)(3). Note that under subparagraph (e)(3)(vi), an individual admitted to the Bar of the Court of Appeals of Maryland is exempt only “when the individual renders services within the course and scope of practice by the individual as a lawyer and does not engage in the credit services business on a regular and continuing basis.”-----

Entire act is linked http://www.dllr.state.md.us/finance/advisories/advisory9-08.shtml

Verdict: An attorney rendering services or 'advocating' for his client is actually exempt from licensing and the Mortgage Credit Service Business Act (MCSBA) and thus, may collect upfront fees.

Reply by Alice/MD on 4/14/10 12:01pm
Msg #331682

Thanks Ilene for this much needed and appreciated information. This is why I check Notary Rotary for information such as this.