What is Dodd-Frank Certification?
If you are going to apply for the government’s modification program under Home Affordable or Making Home Affordable you will want to know about the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. 111-203).
You will be required to furnish this information in order to be approved for a government loan modification. Authorized under the Emergency Economic Stabilization Act of 2008 anyone looking for government assistance will need to pass certification under this law.
The following applies:
- You have not been convicted in a mortgage or real estate transaction in the past 10 years.
A) Felony larceny, theft, fraud or forgery, or B) Money laundering or C) Tax evasion or
This will apply to both borrower and co borrowers; you can find this form on the Making Home Affordable website. This form will allow the lenders to pull routine background checks, including automated searches of federal, state and county databases, to confirm that you have not been convicted of such crimes. Submitting false information may violate Federal law and fees and penalties could apply and possible imprisonment.
As the government continues to revamp the Home Affordable program and continue their investigations into some of the lenders foreclosure practices, we can only hope the system will receive some much needed improvement on how transactions are processed and handled.