RISMEDIA, February 9, 2010—The Federal Trade Commission (FTC) moved to protect distressed homeowners from the promoters of bogus foreclosure rescue and mortgage modification services by proposing a new rule that would forbid companies to charge up-front for these services. Instead, companies could only collect payment after providing services.

“Homeowners facing foreclosure or struggling to make mortgage payments shouldn’t have to contend with fraudulent ‘companies’ that don’t provide what they promise,” FTC Chairman Jon Leibowitz said. “The proposed rule would outlaw up-front fees so companies can’t take the money and run.”

According to the Notice of Proposed Rulemaking, historic levels of consumer debt, increased unemployment, and an unprecedented downturn in the housing and mortgage markets have contributed to high rates of mortgage loan delinquency and foreclosure. This mortgage crisis has launched an industry of companies purporting, for a fee, to obtain mortgage loan modifications or other relief for consumers facing foreclosure. The FTC has brought 28 cases in this area, and state and federal law enforcement partners have brought hundreds more. Generally these cases charged that companies do not provide the services they promise and that they misrepresent their affiliation with the government and government housing assistance programs, including the Making Home Affordable Program.

The FTC notice seeks public input, particularly from attorneys and other professionals, on a proposed rule that would require mortgage relief companies to make good on their promised results before charging or accepting payment from consumers. Under the proposed rule, companies could not be paid until they had a documented offer from a mortgage lender or servicer that lives up to the promises they have made.

‘Far too many homeowners have paid up-front fees to bad actors who promised loan modifications but never delivered,” Treasury Secretary Timothy Geithner said. “I commend the FTC for proposing a strong set of safeguards to protect consumers from these predatory practices.”

The proposed rule would also bar providers from telling consumers to stop communicating with their lenders or mortgage servicers, and from misleading them about key facts such as:

-The likelihood of getting the results they want, and how long it will take.

-Their affiliation with public or private entities.

-Payment and other existing mortgage obligations.

-Refund and cancellation policies.

In addition, the proposed rule would require providers to tell consumers that they are for-profit businesses, the total amount consumers will have to pay, that neither the government nor the consumer’s lender has approved their services, and that there is no guarantee that the lender will agree to change their loan.

The proposed rules would apply to for-profit companies that, in exchange for a fee, offer to work with lenders and servicers on behalf of consumers to modify the terms of mortgage loans or to take other steps to avoid foreclosure on those loans. The proposed rules generally exempt entities that own or service mortgage loans. Attorneys would have a limited exemption from the proposed advance fee ban if they represent consumers in a bankruptcy or other legal proceeding.

For more information, visit www.ftc.gov.

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RISMEDIA, February 4, 2010—Mortgage experts from Bills.com, one of the leading resources for free, objective and expert money advice, advised that consumers considering a home refinance should begin the process now. Further, the company reported that the most frequently asked question of its Ask Bill expert advice center concerned home refinancing rates and recommendations.

“Market conditions have aligned to make this a perfect environment for home refinancing,” said Ethan Ewing, president of Bills.com. “Low rates and compelling opportunities to refinance into shorter term loans have arrived at the same time as large consumer demand.”

Ask Bill is a free service that allows consumers to ask any money question of human experts and receive personalized advice to their inquiries. One of the most frequently asked questions of 2009 concerned interest rates for home refinancing.

This high level of interest on behalf of consumers corresponds to favorable market conditions for refinancing. Specifically, these factors include:

1. Interest rates continue to hover around all-time lows, making it sensible for anyone carrying a higher rate interest loan to consider refinancing. With some exceptions, a 1/2-point to a 1-point drop in rate will generally make refinancing worthwhile.

2. Low fixed interest rates make converting from an adjustable rate loan into a fixed 15- or 30-year loan a smart move. Even if the adjustable payment is currently lower than a fixed rate payment, when rates rise again the monthly payment on an adjustable rate loan will quickly leapfrog a fixed rate loan.

3. The current difference between fixed 15-year and 30-year interest rates is significant, making refinancing into a shorter-term loan a compelling opportunity. This can save hundreds of thousands of dollars over the life of a loan and shorten the time to payoff with sometimes only a slight increase in monthly payment.

4. FHA efficiency mortgages provide consumers with an opportunity to refinance into a loan that will help pay for home efficiency improvements. These loans are meant to provide consumers with a way to make energy efficient improvements to their home as part of an origination or refinancing. This is a great way for homeowners to cost-effectively lower their utility bills through basic home repairs.

5. Those homeowners whose equity situation has steadily deteriorated, leaving them with little, no or negative equity in their homes, should ask their lender or broker for help. Most have some flexibility with government programs aimed at reducing rates for homeowners in weak equity positions.

“This interest rate environment provides opportunities for those trying to escape high interest rates as well as those making savvy long-term financial decisions,” continued Ewing. “Anyone considering a home refinance should move quickly to lock in rates now.”

For more information, visit www.bills.com.

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RISMEDIA, February 4, 2010—With a few clever tricks and relying on some tried-and-true decorating secrets from the Creative Ideas design team, these homeowners turned their second full bath into a modern, family-friendly retreat. Now, the charming space can easily accommodate their two children and guests.

To achieve maximum impact on a minimal budget, follow this young couple’s lead: Tackle the big problems first, save where you can and limit yourself to one splurge.

Challenge #1
The black-and-white color scheme and tiled walls did not reflect the family’s personality. They wanted a cozier, more natural overall look and feel.
Solution: The new tortoiseshell-inspired color palette of earthy brown, linen and white transforms this into a casual, yet sophisticated room.

Challenge #2
Before, the large vanity was the room’s focal point and made the space feel cramped. With an existing linen closet already in the bath, the family didn’t need the vanity’s storage area.
Solution: Replacing the vanity with a pedestal sink increases floor space and makes the room look larger.

Easy Budget Ideas
Warm the Walls
To add a cottage detail to the room, the homeowners installed pine wood paneling on the walls. To save money, they covered the wall’s existing tile rather than removing it.

Tailored Look
To customize the space, the couple framed the walls with crown and base moulding. They also added a moulding ledge above the pine paneling.

Power of Paint
For maximum impact with minimum cost, use paint to update a space. Here, the dark brown warms up the room.

Natural Fabric
Two linen curtain panels were chosen instead of a traditional shower curtain. Paired with a simple plastic shower liner, the curtains frame the bathtub and contrast with the dark walls.

Finishing Touches
Rustic accents, including the bamboo shades, wooden mirror and shelf, mix well with classic elements, such as the tall faucet and vanity light, to give the bath a blended look.

Easy Organizing
To tame an unruly linen closet, the couple organizes storage with woven baskets.

Challenge #3
The homeowners craved something more unique than the existing black-and-white tiled floor, but they still wanted to keep the look clean.
The Solution: Distinctive glass pebble flooring became the perfect solution. The tile, inspired by white river rock, continues the natural feel of the room. RE

Visit LowesCreativeIdeas.com for step-by-step instructions and an illustration on covering the wall tile with pine paneling and adding the moulding ledge.

© Lowe’s Creative Ideas magazine.

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