Question:  The licensee provides the borrower with a written agreement for loan modification services which complies with §494.00296(2)(a) and the modification provides a material benefit to the borrower.  Is the fee earned if the borrower elects not to consummate the transaction?

 

Answer:  Section 494.00296(1)(c), Florida Statutes (2009) provides in part:  ". . . A fee may be charged only if the loan modification results in a material benefit to the borrower. . ."

Since the borrower elected not to consummate the transaction, the modification did not provide a material benefit to the borrower.  Accordingly, no fee is earned.