FDCPA Training :Matt Martin Real Estate Management 1 FDCPA Training


FDCPA Training :2 FDCPA Training As Realtors, you are tasked with the fiduciary responsibility of protecting your client’s best interests. Before a client is a client, they are just another consumer When soliciting to consumers, we are Confident you are familiar being in compliance with the “Do Not Call List” As salespersons, we are Confident in your passion to seek out interested consumers and market your invaluable services But when your “consumer” is delinquent on their mortgage, and you become privileged to this information by the Creditor or its representatives, you must also be compliant with the FDCPA


Good News :3 Good News When properly executed, your new responsibility can become a great asset Helping someone out during stressful times, often builds a friend/or client for life So long as you demonstrate patience, and adherence to the compliance regulations of the FDCPA… WE CAN USE YOUR HELP AND YOU CAN HELP US


FDCPA and Borrower Contact :FDCPA and Borrower Contact 4 When speaking to the borrower, you must identify yourself and MMREM Give them the copy of the Identification letter MMREM is hired help to manage the real estate transaction ONLY. MMREM is not managing the resolution of the borrower’s debt, nor will any MMREM agents or representatives speak on behalf of the debt If a borrower wishes to speak with MMREM, you should inform that if it has to do with the real estate transaction to go through you, and if it is regarding their debt, they can go through you or the servicer so long as you have an authorization to speak on the borrower’s behalf. MMREM will provide suggestions to make the transaction go smoother, through increased communication with the servicer and investor


FDCPA Disclosure :FDCPA Disclosure 5 Broker should not communicate with the Seller at any unusual time or place known (or which should be known) to be inconvenient to them. Unless the Seller requests otherwise, Broker may only make contact after 8 o’clock antemeridian and before 9 o’clock postmeridian, local time at the Seller’s location.


FDCPA Disclosure :6 FDCPA Disclosure Broker should not communicate with a Seller if Broker knows that they are represented by an attorney for the debt, and Broker knows (or can easily determine) the attorney’s name and address. However, Broker may contact the Seller directly if, The attorney fails to respond to communication within a reasonable period of time (Minimum 20 Days), or The attorney consents to your direct communication with the seller


FDCPA Disclosure :7 FDCPA Disclosure Broker should not contact the Seller at their place of employment if Broker is aware (or has reason to know) that the Seller’s employer prohibits the Seller from receiving such communications.


FDCPA Disclosure :8 FDCPA Disclosure Unless Broker has received the prior consent of the Seller given directly to them, Broker should not provide any details of the debt to any person other than the Seller, their retained attorney, a consumer-reporting agency (if otherwise permitted by law), the creditor, the attorney of the creditor, or MMREM’s Attorney. This permission may also be granted by an appropriate court, or as reasonably necessary to execute a post-judgment judicial remedy.


FDCPA Disclosure :9 FDCPA Disclosure If a consumer notifies Broker, in writing, that h/she refuses to pay a debt or that they want the Broker to cease further communications with them, Broker cannot communicate further with them about the debt.


FDCPA Disclosure :10 FDCPA Disclosure The FDCPA makes it illegal to harass, oppress, or abuse any person in connection with the collection of a debt. However, the law does not define the word “harass”. Therefore, the courts can interpret it when such a case comes up under this section of the law. The FDCPA prohibits any false, deceptive or misleading representations or methods to be used when collecting a debt.


Example Outreach when Door Knocking :Example Outreach when Door Knocking 11 Are you Mr. Smith? (confirm it is the borrower) Hello Mr. Smith, how are you doing today? My name is Noah Martin with Keller Williams Realty. I work in tandem with MMREM, who is hired by your Mortgage Servicer ________ . MMREM asked me to contact you in person to see if there might be a way they could work with you to help you stay in your home. You should have received this letter in the mail, it was sent to on “Date” at this address “123 Main Street.” Here is a copy just in case you misplaced it. Do you remember receiving this letter? The servicer would like to see if there’s anything I can do to help you. As a realtor, I understand the real estate market conditions and as a person, I understand these tough times; oftentimes there are many options.


Building Rapport :Building Rapport 12 I am not here to collect money from you, I am just here to see if I can offer any assistance. Many other people are in similar situations and it’s the least I can do as a realtor to stop by and see if I could offer my professional assistance. You should know that your servicer wants to help. If you feel comfortable, why don’t you give me a snapshot of your situation, and I’ll try to provide you with some possibilities you may not be aware of. If you cross the trust bridge, present the proper disclosures and help them prepare their financial documentation. If they need more verification, have them call their servicer to verify and leave a business card for them to call you.


The Question :The Question 13 Do you want to stay in your home? If YES, then you should tell them that’s great, help them prepare the proper financial documentation, provide them with the contact information for the servicer, and report your finding back to MMREM Your scorecard will increase every time you keep someone in the home If No, then you should ask them if they’ve heard of a short sale. Go over the benefits of a short sale for them and for their servicer. Let them know you are experienced with these transactions and MMREM is there to help increase communication throughout the process.


Mini Miranda Disclosure :Mini Miranda Disclosure 14 Section 807(11) of the FDCPA requires a debt collector to inform a consumer that “this communication is an attempt to collect a debt and any information obtained will be used for that purpose” in the initial communication. This disclosure is known as the mini-Miranda. In the event that a debt collector’s first communication with a consumer is oral, the full mini-Miranda disclosure must also be included in the first written communication sent to the consumer.


Third Party Informants :Third Party Informants 15 You may contact third parties to obtain the borrower’s information: If you inquire of neighbors, or other third parties; identify yourself, state that you are confirming or collecting location information concerning the borrower. Only if expressly requested, you may tell the third party you are with MMREM. It is STRICTLY prohibited to disclose that you are working for or in liaison with the borrower’s mortgage servicer Only one contact attempt allowed with any particular third party regarding the borrower’s location.


Third Parties cont… :Third Parties cont… 16 You Should NEVER use any language or symbol on an envelope or any type of communication that can be seen by the public, sent by mail or telegram, that indicates that the borrower owes money, or that the Mortgage Servicer is trying to collect money.


Prohibited :Prohibited 17 The following are considered unfair practices and are prohibited: Collecting any amount other than the amount authorized by the agreement creating the debt, unless state law permits such a charge; Prematurely depositing a post-dated check; Concealing the true purpose of a call to cause the borrower to accept and pay for collect calls or pay for telegrams; Taking or threatening to take a borrower’s property unless this can be done legally or if there is no present intent to take such property; and Communicating with a borrower regarding a debt by postcard.


Prohibited :Prohibited 18 (cont.) Not falsely imply that the borrower has committed a crime, or that the nonpayment of a debt will result in: arrest or imprisonment the seizure, garnishment, attachment or sale of any property or wages unless such action is lawful and the debt collector or creditor intends to take such action


Prohibited :Prohibited 19 (cont’d.) Not falsely represent that you operate or are employed by a credit bureau; Not misrepresent the character, amount or legal status of a debt; Not indicate that documents sent to the borrower are legal forms when they are not; or Not indicate that documents sent to the borrower are not legal forms when they are.


Prohibited :Prohibited 20 Not contact a borrower who, in writing, requested that the debt collector cease further communications with the borrower, or has informed the debt collector that the debt or any portion thereof is in dispute; other than : To inform the borrower that the debt collector will cease attempts to contact the borrower To contact or to notify the borrower that either the debt collector or creditor will take specific action or invoke specified remedies; Not to contact a borrower that has retained an attorney with respect to the debt;


Prohibited :Prohibited 21 Not to give false credit information about the borrower to any person, (this includes the failure to communicate that a disputed debt is disputed); Not sending a borrower a writing that looks like an official document from a court, official or state or federal government agency when it is not; and Not to use a name other than the true name of the debt collector’s business.


Prohibited :Prohibited 22 You may not use any false or misleading statements when collecting a debt. For example, you may not: Falsely imply that you are an attorney or that any communication is from an attorney; Falsely imply that you are vouched for, bonded by, or affiliated with a state or federal government entity


Penalties and Violations :Penalties and Violations 23 Any person or entity that violates the FDCPA is subject to: Fines levied by the FTC (Federal Trade Commission) as well as being liable for damages awarded in a civil suit. Both MMREM and you could be liable.


Need more Information? :Need more Information? 24 Contact MMREM 8521 Leesburg Pike Suite 601 Vienna, VA 22182 1.877.32.MMREM