Why the Dodd Frank Certification is required for loan modication now?

by Dori Tery on October 20, 2013

The Dodd Frank Certification that works with your loan modification

The US government recently released the Dodd Frank Certificate to examine a home buyer that he or she has not been found guilty of a felony which is related to home loan or real estate at least in the past ten years. The requirement is written under the Dodd-Frank Wall Street Reform and Consumer protection Act (Pub.L. 111-203) by the government financial regulations. Besides, the Dodd Frank Certification is applied to the Home Affordable Modification Program (HAMP modifications).

Why most of the US Bank needs this now?

As mentioned, the Dodd Frank Certification can be used to exam a person that is not convicting of any of the following transaction in the past 10 years:

  • Felony larceny, forgery, theft or fraud
  • Money Laundering
  • Tax evasion

The regulation requires both the borrower and co-borrowers to sign the Dodd Frank certificate form. The form is available on the U.S websites like Making Home Affordable website. Besides, the form is usually provided by the banks or lenders which help you process any loan modification package. The bank can use the form to exam the lenders’ background especially the financial status. The banks or money lenders usually can access and search the lenders’ background through the federal, state and country database. If someone is found that he or she have been convicted to crimes as mentioned above, the loan application will be stopped immediately.

Finally, no one is allowed to submit false information as if anyone is found guilty can be imprisoned or fined with a significant of sum.

dodd frank certificate loan modification

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