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Loan Modifications Do Not Require Attorney Supervision

In Crawford v. Central Mortgage Co., the supreme court held that “lenders do not engage in the unauthorized practice of law by preparing and mailing loan modifications to borrowers and recording the executed documents without participation of a licensed attorney.”

The court consolidated two cases for this opinion:  Crawford v. Central Mortgage Co. and Warrington v. The Bank of South Carolina.  The borrowers in both cases did not make required loan payments.  The borrowers subsequently requested loan modifications, and the banks modified the loans without the supervision of a lawyer. Continue reading

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