As you may recall from prior postings, the Mortgage Assistance Relief Services (MARS) rule was issued by the Federal Trade Commission (FTC) and took effect on January 31, 2011. The MARS rule imposes an advance fee ban, advertising restrictions as well as disclosure and record keeping requirements on companies and individuals involved in MARS related activities.
NAR has been in ongoing discussions with the FTC in an attempt to obtain an exemption from the rule for real estate licensees. As of right now, real estate professionals are not exempt. However, the FTC agrees that aspects of MARS do not make sense in a real estate brokerage context and is working with NAR to resolve these issues.
On May 11, 2011, NAR’s General Counsel, Laurie Janik, discussed MARS and provided the following guidance:
1. Real estate professionals engaged in MARS activity must adhere to the ban on upfront fees;
2. Real estate professionals who advertise MARS services must include the General Communications Disclosure in their marketing materials;
3. For now, real estate professionals may hold off complying with the Consumer-Specific Commercial Disclosure and the Disclosure When Providing an Offer of Mortgage Relief; and
4. Real estate professionals should watch for MARS updates on realtor.org
Item 2 above references the General Communications Disclosure. Ms. Janik’s guidance is that real estate professionals who advertise MARS services must include the General Communications Disclosure in their marketing materials. This disclosure must be included when a licensee advertises in any way MARS services that are not directed to a specific consumer. This includes any written material, radio or television commercials, advertisements on the internet, etc.
In print advertisements, the following language must be used:
IMPORTANT NOTICE: (Name of company) is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.
In communications disseminated orally or through audible means, the following language must be used:
Before using this service, consider the following information. (Name of company) is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.
NAR is continuing to work with the FTC and will post any updates regarding the rule on http://www.realtor.org/topics/mars.
For additional information regarding the MARS General Communications Disclosure, you may review the MARS rule Q&As developed by NAR and located at: http://www.realtor.org/law_and_policy. Additionally, the FTC has published The Mortgage Assistance Relief Services Rule: A Compliance Guide for Business, which is available at: http://business.ftc.gov/documents/bus76-mortgage-assistance-relief-services-rule.