A new statute that took effect October 12, 2009 prohibits attorneys or anyone else from charging for loan modification services until those services are completed. This law was passed because of a large number of complaints about a small fraction of attorneys who were taking money from clients for loan modifications but providing little or no service. Unfortunately, these allegedly unscrupulous attorneys have harmed all of us.
In practical terms for our clients and us, the new means that clients now have to sign two separate retainers at different times in the loan modification process. The only other alternative would have been to stop providing loan modification services, which would have removed a valuable service that we have been providing to the public.
