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It shall be a violation of this Section for a Mortgage Modification Consultant to do any of the following:
(a) Perform any Service without a written Contract.
(b) Claim, demand, charge, collect, or receive any fee for performing any Service in connection with the modification of the terms of a loan secured directly or collaterally by a lien on a Residence until the Mortgage Modification Consultant has obtained from the Owner's lender or loan servicer a written offer of a loan modification for the Owner that accomplishes one or both of the following through an interest rate reduction, principal reduction or forbearance, term extension, or some combination thereof:
(1) Reduces the Owner's monthly loan payment (principal and interest) by at least 20% for a minimum of five years; or
(2) Reduces the Owner's monthly payment for housing expenses for the Residence, including principal and interest payment, property taxes, homeowners insurance, and any applicable homeowner's association fees, to no more than 31% of the Owner's monthly gross income for a minimum of five years.
(c) Take any wage assignment, any lien of any type on real or personal property, or other security to secure the payment of compensation. That security shall be void and unenforceable.
(d) Receive any consideration from any third party in connection with Services rendered to an Owner unless that consideration is fully disclosed to the Owner at the time the Contract is entered into.
(e) Acquire any interest in the Residence of the Owner with whom the Mortgage Modification Consultant has contracted. Any interest acquired in violation of this subsection shall be voidable, provided that nothing herein shall affect or defeat the title of a bona fide purchaser or encumbrancer for value and without notice of a violation of this Section. Knowledge that the property was a Residence does not constitute notice of a violation of this Section. This subsection may not be deemed to abrogate any duty of inquiry which exists as to rights or interests of persons in possession of a Residence.
(f) Take any power of attorney from an Owner for any purpose.
(Added by 203-09, File No. 090889, App. 8/28/2009)
Any waiver by an Owner of any or all of the provisions of this Article shall be deemed void and unenforceable as contrary to public policy. Any attempt by a Mortgage Modification Consultant to induce an Owner to waive his or her rights shall be deemed a violation of this Article.
(Added by 203-09, File No. 090889, App. 8/28/2009)
(a) Criminal. Any person who violates any of the provisions of this Article is guilty of a misdemeanor and shall be punished by a fine of not more than one thousand dollars ($1,000), or by imprisonment in the County Jail for a period of not more than six months, or by both such fine and imprisonment. Each violation of a provision of this Article shall constitute a separate offense.
(b) Civil. In addition to all remedies allowed by law, an Owner may bring an action against a Mortgage Modification Consultant for any violation of this Article. A Mortgage Modification Consultant may be liable in a civil action for damages up to three times the amount of actual damages, reasonable attorneys' fees, and costs of litigation.
(c) Cumulative Remedies. The remedies or penalties provided under this Article are cumulative and are not intended to be exclusive of any other available remedies or penalties, including those provided under state or federal law.
(Added by 203-09, File No. 090889, App. 8/28/2009)
(a) A Mortgage Modification Consultant is liable for all damages resulting from any statement made or act committed by the Consultant's representative in any manner connected with the Consultant's (1) performance, offer to perform, or contract to perform any of Service, (2) receipt of any consideration or property from or on behalf of an Owner, or (3) performance of any act prohibited by this Section.
(b) "Representative" for the purposes of this subsection means a Person who in any manner solicits, induces, or causes (1) any Owner to contract with a Mortgage Modification Consultant, (2) any Owner to pay any consideration or transfer title to the Residence threatened with foreclosure to the Mortgage Modification Consultant, or (3) any member of the Owner's family or household to induce or cause any Owner to pay any consideration or transfer title to the Residence to the Mortgage Modification Consultant.
(c) Any provision in a Contract that attempts or purports to limit the liability of the Mortgage Modification Consultant under this subsection shall be void and shall at the option of the Owner render the Contract void.
(Added by 203-09, File No. 090889, App. 8/28/2009)
In the event that a court or agency of competent jurisdiction holds that federal or state law, rule, or regulation invalidates any clause, sentence, paragraph or section of this Article or the application thereof to any person or circumstances, it is the intent of the Board of Supervisors that the court or agency sever such clause, sentence, paragraph or section so that the remainder of this Article shall remain in effect.
(Added by 203-09, File No. 090889, App. 8/28/2009)