What rule prohibits mortgage foreclosure rescue and loan modification service providers from collecting fees until a written offer is accepted?

The MARS Rule, which stands for the Mortgage Assistance Relief Services Rule, is designed to protect homeowners from potential abuses by those offering foreclosure rescue and loan modification services. Under this rule, providers of such services cannot collect any fees from homeowners until they have accepted a written offer for mortgage relief from their lender or servicer. This requirement is in place to ensure that consumers are not pressured or scammed by providers who may demand payment upfront without delivering legitimate services.

The intent behind this regulation is to promote transparency and prevent deceptive practices in the mortgage assistance industry. By requiring a written offer to be accepted first, the MARS Rule aims to safeguard homeowners and give them a fair opportunity to review their options before incurring any financial obligations to service providers.