Massachusetts Mortgage Measure Set to Pass
With problems regarding home loans continuing to pile up, certain states are taking matters into their own hands in order to protect consumers.
To that effect, the Massachusetts State Senate is expected today to pass new legislation aimed at preventing home loan foreclosures and mortgage fraud.
The mortgage bill encompasses several proposals made earlier by legislators and Governor Deval L. Patrick, including, but not limited to:
- Making Massachusetts mortgage fraud a felony
- Establishing procedures to avoid deceptive mortgage loan advertising
- Adding requirements for lenders and borrowers, as well as mortgage broker licensing, including in-person counseling
- Licensing mortgage broker groups and originators
- Creating a Division of Banks database to track foreclosure trends and a system to rate mortgage companies on lending practices
- Establishing a borrower’s right to stop foreclosures by paying missing home loan payments, costs, and fees.
Secretary of State William F. Galvin criticized the legislation because it doesn’t require a Massachusetts home loan lender to get permission from local courts before seizing homes of delinquent borrowers.
If passed by the Senate, the bill still must be approved by the House and signed by the governor. It is expected to, however, giving home mortgage applicants in the Bay State an added protection they lacked until now.
SOURCE: Boston Globe