The Law Offices of Steven C. Vondran
Phone (877) 276-5084 Email: Steve@VondranLaw.com
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Are you a California Broker wondering how you can legally work with Attorneys in the loan modifcation business?
I have submitted approximately 30 advance fee agreements for various California DRE licensed Brokers. I have received over 20 letters of non-objection and have approximately 20 companies approved to legally perform loan modifications in California.
One of the questions I keep getting is, "how can we work with you." After giving my standard lines:
- Attorneys cannot split legal fees with non-attorneys
- Attorneys cannot form a partnership with non-attorneys
- Attorneys cannot have runners and cappers funneling or channeling business to the attorney
We wind up at the next topic......"so what is allowed as far as a broker and attorney alliance that may help benfit homeowners?
This is not a simple question.
There is some talk that an Attorney has to have a real estate broker's license to do loan modifications. I have posted a blog where I have taken a look at this assertion/issue. To me, the question may come down to whether or not the attorney is "actively and principally engaged' in the Loan negotiation business.
This is only half of the equation. The DRE considers loan solicitation, marketing and loan negotiation to be licensed activity (See Fall 2008 Mortgage Loan Bulletin on the DRE Website). As such, it would appear that anyone who seeks to perform loan modifications in these capacties would need a California Broker's license to do it. In addition, it seems fairly clear that A CALIFORNIA BROKER NEEDS A DRE APPROVED ADVANCE FEE AGREEMENT AND VERIFIED ACCOUNTING IN ORDER TO LEGALLY ACCEPT AN ADVANCE FEE IN THE LOAN MODIFICATION CONTEXT. When I use the word "approved" I really mean to say that the advance fee contract received a "letter of non-objection" from the DRE.
So, if you have an Attorney who is able to competently able to perform loan modifications and a Broker who is properly licensed, doing loan modifications for the right reasons (to help homoewners) and has an Advance Fee Agreement that has received a letter of non-objection from the DRE, then you may have a foundation whereby the Broker can submit loan files to an Attorney, under a very limited circumstance, and for the sole specific purpose of conducting a forensic loan audit of the Broker's client loan file.
The loan audit summary should be written for the broker's use only and no attorney-client relationship can be created with the Subject of the loan audit (i.e. the borrowers). Other important issues should be dealt with under a written contract that should be signed prior to commencing the engagement.
OUTSOURCING TO ATTORNEYS FOR A FORENSIC LOAN AUDIT UNDER AN ADVANCE FEE AGREEMENT THAT PERMITS OUTSOURCING FOR THIS PURPOSE:
I have previoulsy submitted to the DRE an advance fee agreement that permits a broker to contract directly with an attorney or law firm for the limited purpose of conducting a loan audit. I also have a separate advcance fee agreement that allows for not only the audit, but for a summary of findings letter to be sent from the Attorney directly to the lender(s). Both of these AFA's received a letter of non-objection and are ready for your use.
The contract has to contain certain provisions that clearly disclose to the borrower the actual and true nature of the relationship.
If you are a California broker and wish to utilize the services of a California Attorney to perform a forensic loan audit on your tough files, contact us today for more information.
We can get you set up with an advance fee agreement that may help you better serve the needs of your clients.
It should be noted that the DRE will not permit the outsourcing of the "negotiation" (i.e. negotiating the loan modification with the lender) to a third party. The DRE expects brokers to perform a "complete service" for its Clients. But I do beleive the DRE has recognized that a Broker may not have loan auditing skills or the ability to perform a forensic loan analysis, and therefore they have allowed Brokers to defer to Attorneys to perform what could be an essential element in helping your Clients get the loan modifications they deserve.
Contact us for more information about our Attorney Loan Audit Outsourcing Agreements. Good luck in the loan modification business!!
Phone (877) 276-5084 Email: Steve@VondranLaw.com
Notice/Disclaimer /Contact Information: The preceeding information is general information only and not intended to serve as legal advice or a substitute for legal advice. For specific legal questions please contact a qualified attorney licensed in your state to assist you. There are no warranites or representations made that the following information is accurate, complete or up to date. In addition, any emails sens to us are not confidential and do not create an attorney client relationship. Please use your discretion before sending confidential information. The Law Offices of Steven C. Vondran is operated by Attorney Steve Vondran. Mr. Vondran is licensed to practice law in the States of Arizona and California and only seeks to solicit and serve Clients in these states. This is an advertisement and communication pursuant to state bar rules. There are no guarantees a loan audit will reveal any legal errors of compliance violations. There are likewise no guarantees any lender or loan servicer will modifiy any loan. Each loan, property, borrower, investor and servicer are different. In addition, there are no representations made that Mr. Vondran will accept any litigation case following a loan audit and demand letter to the lender. For more information about Mr. Vondran's law firm please visit www.VondranLaw.com the Attorney Loan Audit program can be reviewed at www.AttorneyMods.com
If you are a California Real Estate Broker looking for a DRE Approved Advance Fee Agreeement please visit www.AdvanceFeeContract.com We have over 20 approved DRE companies as of this writing and have several advance fee agreement options available including an advance fee agreement that allows for outsourced Attorney Loan Audits and/or a letter to the Lender. We also have spanish advance fee agreements available.
Phone (877) 276-5084 Email: Steve@VondranLaw.com
If you are a homeowner and are looking for an attorney or law firm to handle your loan modification request, please visit www.loanmodsolutions,net Fill out the form and a representative of our firm will contact you promptly to discuss your situtation. For Brokers interested in loan modification seminars, please visit www.loanmodseminar.com . The next seminar is scheduled for March 20th, 2009 in Long Beach, California. There is also another event scheduled in San Jose, California for March 27th, 2009.
If you are a homeowner who feels you have been the victim of a loan modification scam please check out www.ModScams.com .
Our Offices:
California: 620 Newport Center Drive, Suite 1100, Newport Beach, CA 92660
Arizona: 2415 E. Camelback Road, Suite 700, Phoenix, AZ 85016
Phone (877) 276-5084 Email: Steve@VondranLaw.com
Because most of our California loan modification and loan auditing work can be done, and is done, by phone fax and email we are able to serve our California clients in the following California Counties and Cities
Alameda
Albany
Berkeley
Dublin
Emeryville
Fremont
Hayward
Livermore
Newark
Oakland
Piedmont
Pleasanton
San Leandro
Union City
Amador
Amador City
Ione
Jackson
Plymouth
Sutter Creek
Chico
Gridley
Oroville
Paradise
Angels Camp
Colusa
Colusa
Williams
Antioch
Brentwood
Clayton
Concord
Danville
El Cerrito
Hercules
Lafayette
Martinez
Moraga
Orinda
Pinole
Pittsburg
Pleasant Hill
Richmond
San Pablo
San Ramon
Walnut Creek
Crescent City
Placerville
South Lake Tahoe
Clovis
Coalinga
Firebaugh
Fowler
Fresno
Huron
Kerman
Kingsburg
Mendota
Orange Cove
Parlier
Reedley
San Joaquin
Sanger
Selma
Orland
Willows
Humboldt
Arcata
Blue Lake
Eureka
Ferndale
Fortuna
Rio Dell
Trinidad
Imperial
Brawley
Calexico
Calipatria
El Centro
Holtville
Westmorland
Inyo
Bishop
Kern
Arvin
Bakersfield
California City
Delano
Kern County
Maricopa
McFarland
Ridgecrest
Shafter
Taft
Tehachapi
Wasco
Avenal
Corcoran
Hanford
Lemoore
Lake
Clearlake
Lakeport
Susanville
Los Angeles
Agoura Hills
Alhambra
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Bell
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CalabasCarson
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Hawthorne
Hermosa Beach
Hidden Hills
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Industry
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La Habra Heights
La Mirada
La Puente
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Lakewood
Lancaster
Lawndale
Lomita
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Lynwood
Malibu
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Maywood
Monrovia
Montebello
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Norwalk
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Paramount
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Rolling Hills
Rolling Hills Estates
Rosemead
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Santa Fe Springs
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Temple City
Torrance
Vernon
Walnut
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Westlake Village
Whittier
Chowchilla
Madera
Marin
Belvedere
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Mill Valley
Novato
Ross
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Fort Bragg
Point Arena
Ukiah
Willits
Merced
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Lindsay
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Oxnard
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Davis
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Woodland
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Marysville
Wheatland
This is an advertisement and communication pursuant to State Bar Rules. Offer Applies to California Brokers Only.
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