REALTORS® relieved of MARS disclosure requirements
Wednesday, July 27, 2011
REALTORS® helping consumers in short sale transactions have much cause for celebration. The Federal Trade Commission has issued a stay of enforcement of the Mortgage Assistance Relief Services (MARS) Rule for real estate licensees.
According to the National Association of REALTORS®, MARS disclosures are not necessary as long as the parties involved remain within the FTC’s guidelines.
The state Attorney General Pam Bondi has responded to Florida REALTORS® requests for information by verbally stating there are no intentions to enforce current regulations against real estate licensees.
According to an article from Florida REALTORS®, "The rulemaking and enforcement of the MARS regulations are being moved to the new Consumer Credit Bureau (CFPB.) CFPB has not issued the same stay but the FTC has communicated to the National Association of REALTORS® (NAR) that they will assist in securing the same stay. At this time, therefore, NAR feels there is very little danger that the CFPB would take any actions against Real Estate Licensees regarding the MARS regulations.”
In the event a change is made which results in the resumption of enforcement, ORRA will promptly notify all members. Under these regulations there is no private right of action; consumers are not able to bring a suit against a real estate broker.
We encourage all REALTORS® to proceed with caution in all matters of business. REALTORS® should be mindful of other legal requirements in Florida such as the Florida Foreclosure Prevention Act as well as ensuring they are not engaging in the unauthorized practice of law. Please contact the Florida REALTORS® legal hotline at 407.438.1409 with any further questions.
View NAR’s comprehensive Q&A
View complete announcement by the FTC