TNLMA™ Announces Launch of Certification Program for Loan Modification Specialists and Loss Mitigation Companies

First National Proactive Association for the Loss Mitigation Industry and Loan Modification Service Providers Announces CLMS Program

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--In a continuing response to the National Housing Crisis, TNLMA™ (www.TNLMA.org) announced the launch today of a certification program to set standardized policies, procedures and a code of ethics for loan modification and loss mitigation specialists. Upon completion of this certification process, Loan Modification Service Providers will be able to utilize the Certified Loan Modification Specialist (“CLMS”) seal to identify to the general public that they are in compliance and adhering to TNLMA™ Bylaws, Standards and Code of Ethics.

“Thousands of distressed homeowners are screaming for skilled professional representation”

“Thousands of distressed homeowners are screaming for skilled professional representation,” said TNLMA™ President Aaron Chua. “The burgeoning need for a clear and organized distribution channel, served by mortgage banking professionals in place of volunteer counselors is the only sensible way to slow down the increasing foreclosure rate that continues to far outpace the rate of successful loan modifications. TNLMA™ believes there’s a huge dormant distribution channel of real estate and mortgage professionals that needs to be activated to connect distressed homeowners to big banks and big government.”

Forging new ground, TNLMA™ is actively bringing mortgage and banking professionals together to work under the TNLMA™ code of ethics, engage in the certification process and aid homeowners who have been left behind by inefficient and ineffective efforts of current government-sponsored counseling services. According to the National Foundation for Credit Counseling (NFCC), as the cry for help is on the rise, 26% of calls to this service’s hotline went unanswered, meaning one out of four homeowners seeking help were unable to even connect to a counselor. In additional reports, referred to in the NFCC's letter to HOPE NOW, say some of those who did get through to the HPF Hotline, “counseling” consisted of little more than a call center in-take process that resulted in a referral back to their mortgage lender.

HOPE NOW’s own statistics show it has achieved a 23.35% success rate and within that rate 21.4% of those who got work-out programs or modifications were still foreclosed on by their lender. Additionally in the Hope for Home Owners Program, Congressional testimony on January 13, 2009, HUD Secretary Shaun Donovan said the Hope for Homeowners program has addressed only “a tiny trickle” of the problem loans.

TNLMA’s standards initiative adds to the growing concern expressed by the business and housing industry community requiring expanded professional services to meet crushing demand for loan modification services. In a letter to Hope Now, the NFCC said, “The NFCC has been and remains deeply concerned by harm being done to consumers seeking to save their homes due to this artificial and indefensible limitation on the number of agencies available to provide the quality mortgage foreclosure prevention services that are needed.”

TNLMA™ provides a forum for executives from leading loss mitigation companies to come together in conferences and discussion groups, engage in dialogue and encourage progress in developing an industry and a regulatory framework that respects the interest of homeowners, lenders and loss mitigation professionals. “TNLMA stresses the need for skilled and professional third party representation for homeowners in hardship,” declares Brian Hewitt, Director of Strategic and Public Relations. “While acknowledging that even with current legislative provisions, lenders do and will continue to represent their interests and not the borrower.”

About The National Loss Mitigation Association (“TNLMA™”)

The National Loss Mitigation Association (“TNLMA™”) is the premier national association dedicated to promoting standardized practices in the loss mitigation industry, protecting the interests of loan modification clients and lobbying on behalf of companies in the loss mitigation industry during the development of public policy and regulation. Led by executives from the nation's top loss mitigation companies, TNLMA™ provides leadership in standards development and public policy advocacy.

TNLMA™ membership is open only to Loss Mitigation companies who are committed to advancing standards and sound regulation. TNLMA™ believes that uniform adoption of standards of conduct and active education of policymakers for the loss mitigation industry is vital to the stability of the global economy.

The Executive Board for TNLMA™ is comprised of some of the most successful business entrepreneurs from the member companies. The Executive Board provides direction to the organization as it promotes industry-wide standards for ethical conduct, educates those shaping public policy and represents TNLMA™ member companies as regulation affecting the loss mitigation industry develops.

For additional information on the news that is the subject of this release (or for a sample, copy or demo), contact Brian Hewitt or visit www.TNLMA.org.

Copyright ©2009 The National Loss Mitigation Association (“TNLMA™”). All rights reserved.