Agent, Rancho Cucamonga, CA
There are no restrictions (of a law) on what a loan modification agent can charge. I've heard of a low of a few hundred and up to and over $5,000. Many agents doing mods have a set fee, but some charge according to the circumstances (NOD?) and the loan amount. It generally becomes a matter of ethics (or lack of) when you get into the high thousand dollar range. This business is TOTALLY unregulated except for the foreclosure laws that really only apply AFTER the NOD has been filed. At that point it becomes illegal (in Calif. and some other states) to charge an up-front fee...BUT (and it's a BIG exception!) if there is an attorney involved, his FIRM can charge the fees as a legal retainer UP-FRONT.
Typically a loan agent makes MORE on an origination than a mod...but if you aren't doing many originations...doing a few mods can be just a much as one origination, and usually less headaches.
If you want to get paid to do loan mods, we have a program for just that...with an attorney so everything is legal. Email me for more info.