MARS Update

by Michelle Lind on March 30, 2011

MARS UPDATE: AAR members may have received a copy of the Combs Law Group email regarding MARS. The information in the email was not based on a formal announcement from NAR or the FTC. Last week, NAR Counsel informed me that the FTC agreed that the “Disclosure to Prospective Customers” and the “Disclosures When Presenting a Short Sale Offer” do not work in the short sale context and could be misleading and confusing to consumers. NAR is hoping the FTC will approve the use of alternative or augmented language that will clarify matters. Although NAR indicated that the FTC stated that these two disclosures need not be given at this point, they continue to work with the FTC on written guidance. Therefore, AAR determined that the best course was to wait until NAR published written guidance sanctioned by the FTC before advising the members further. We anticipate receiving additional guidance from NAR and the FTC shortly and we will distribute it to the members as quickly as possible.

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{ 2 comments }

Kris Hammond March 31, 2011 at 7:55 am

Thank you for your efforts in this arena. I have an additional question about these new requirements based on efforts in my area by the legal profession to approach potential short sale clients and ask for $5,000 in advance to check their contract for errors and then go after the banks in an effort to keep people in their homes. Does this fit under this regulation?

Michelle Lind March 31, 2011 at 12:30 pm

Kris,

There is an exemption in the MARS Rule for attorneys if certain requirements are met. (See section 322.7)

Michelle

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