President Zack Statement Re: The Attorney Exemption in the FTC’s Final Mortgage Assistance Relief Services Rule
The _ applauds the Federal Trade Commission’s recent decision to broaden the attorney exemption in its new rule on Mortgage Assistance Relief Services. By exempting most practicing lawyers who help consumer clients to renegotiate their mortgages or avoid foreclosure, the final FTC rule released last Friday will allow lawyers to continue to provide the critical legal services and expertise homeowners in crisis need. The attorney exemption in the final rule protects consumer clients by largely preserving both the confidential attorney-client relationship and rigorous state court enforcement of professional regulations.
Homeowners facing foreclosure often go to lawyers for help negotiating changes to their mortgages. Lawyers already are subject to extensive state court regulations that impose stringent duties of competency, diligence, confidentiality, and undivided loyalty on lawyers and ensure that they provide the best possible legal representation to their clients. By maintaining the existing state court regulatory environment and declining to impose an unnecessary new federal layer of regulation on most lawyers, the FTC has secured a lifeline for homeowners in danger of losing their homes.
The _ will continue to work with the FTC, the state courts and state bars in an effort to protect homeowners’ access to the effective legal representation that they need and deserve.