Final answer:
The counselor should advise the couple to report the company to the Federal Trade Commission since companies cannot guarantee government-approved loan modifications and may be scamming consumers. The Consumer Finance Protection Bureau and the Better Business Bureau can help verify a company's credibility.
Step-by-step explanation:
The best advice the counselor can give to the couple looking to apply for a loan modification is to report the company to the Federal Trade Commission because no company can guarantee government-approved loan modifications. Such guarantees are often indicative of a scam, as the outcome of loan modifications cannot be guaranteed in advance. Furthermore, entities that charge upfront fees for mortgage assistance services are suspect. Legitimate counseling agencies approved by the Department of Housing and Urban Development offer free advice on loan modifications.
It is important for consumers to be wary of companies that make bold promises about loan modifications and charging large fees. Instead, contacting reputable organizations like the Consumer Finance Protection Bureau (CFPB) for guidance and to verify the trustworthiness of the company, or checking with the Better Business Bureau (BBB) can provide valuable information about the credibility of the financial service provider.