“Rhode Island DBR Issues Press Release on Loan Modification Activity”
On June 15, 2009, the Rhode Island Department of Business Regulation, Division of Banking, issued a press release entitled "Loan Modifications"
June 2009Click here to review a copy of Rhode Island Press Release on Loan Modification.
On June 15, 2009, the Rhode Island Department of Business Regulation, Division of Banking, issued a press release entitled "Loan Modifications", in response to inquiries made to the Division regarding individuals who are directly or indirectly negotiating loan modification terms for borrowers. The purpose of the press release is to notify loan modifiers of the applicability of the Rhode Island Uniform Debt-Management Services Act, R.I.G.L. §19-14.8-1 et seq. (the "Act") to certain loan modification activities. Specific concerns of the Division include the practice of charging "high up front fees regardless of services rendered" and giving advice to consumers to "cease making mortgage payments, even when already delinquent". The Act requires any person who provides debt-management services to an individual who the person reasonably should know resides in Rhode Island at the time the person agrees to provide the services, to be registered with the Division as a Debt-Management Service Provider. Any person who has provided such services for compensation and who is not registered under the Act must cease all loan modification activity and notify the Division of any past activity.