A “Roadmap” to the Mortgage Assistance Relief Services (“MARS”) Disclosures

By AAR General Counsel K. Michelle Lind
Posted February 23, 2011

There are three types of disclosures that a real estate broker involved in short sales may need to make.

Disclosure #1: ADVERTISING

The Rule requires disclosures in “general commercial communications,” such as advertising short sale services. The clear and prominent advertising disclosure must state:

Communications disseminated orally or through audible means must be preceded by the statement “Before using this service, consider the following information.”

Disclosure #2: COMMUNICATIONS WITH PROSPECTIVE CUSTOMERS

The Rule requires additional disclosures in any “consumer-specific commercial communication,” such as communication with a specific prospective client regarding a short sale transaction. The clear and prominent disclosure required in every communication with a prospective client must state:

Communications disseminated orally or through audible means must be preceded by the statement “Before using this service, consider the following information” and, in telephone communications, must be made at the beginning of the call.

Disclosure #3: WHEN PRESENTING A SHORT SALE OFFER FROM THE LENDER OR SERVICER

When presenting the seller with the lender’s short sale approval letter, the Rule requires two disclosures.

The first is a clear and prominent disclosure on a separate written page that states:

The second disclosure the broker must provide is a separate notice from the lender or servicer that explains all material differences between the offer of mortgage relief you got from the lender or servicer and the customer’s current loan.

Sample Disclosure Forms

AAR has developed sample MARS disclosure forms (Microsoft Word), which can be downloaded from the links below:

• Federal Trade Commission (“FTC”)
  Mortgage Assistance Relief Services (“MARS”)
  Advertising Disclosure
• Federal Trade Commission (“FTC”)
  Mortgage Assistance Relief Services (“MARS”)
  Consumer-Specific Commercial Communication Disclosure
• Federal Trade Commission (“FTC”)
  Mortgage Assistance Relief Services (“MARS”)
  Agreement Offer Disclosure
• Federal Trade Commission (“FTC”)
  Mortgage Assistance Relief Services (“MARS”)
  Lender/Servicer Notice

Please consult your designated broker or independent legal counsel about the use of the sample forms.

Additional Information

• The Mortgage Assistance Relief Services Rule: A Compliance Guide for Business
• AAR’s MARS summary
• NAR’s MARS summary
• ADRE Informational Alert (PDF)
• The MARS Rule in its entirety (PDF)

AAR General Counsel Michelle Lind is a State Bar of Arizona board certified real estate specialist and the author of Arizona Real Estate: A Professional’s Guide to Law and Practice. 

Note: This information is of a general nature and may not be updated or revised for accuracy as statutory or case law changes following the date of first publication. Further, this information is not intended as definitive legal advice and you should not act upon it without seeking independent legal counsel.