Mass. law looks to fight foreclosures

BOSTON – A new Massachusetts law signed by Gov. Deval L. Patrick this month will expand consumer protections against foreclosure. More

To continue reading this article, please do one of the following.


Mass. law looks to fight foreclosures

Posted 8/13/12

BOSTON – A new Massachusetts law signed by Gov. Deval L. Patrick this month will expand consumer protections against foreclosure.

In a statement, Patrick highlighted the requirement for creditors to take “reasonable steps” to avoid foreclosure for certain mortgage loans. Creditors now must determine whether the value of modifying the loan outweighs the likely value of foreclosure. If so, the creditor must make the loan modification. The provisions of the new law also mandate that lenders prove loan ownership prior to taking foreclosure action. The law includes new protections that prohibit lenders from misrepresentation, “unfair costs” and imposition of fees for services not performed.

The news release also said the law will create a task force to study foreclosure mediation and other alternatives for homeowners. The group will include the attorney general as the chair of the task force, legislative leaders, a representative of the Massachusetts Bankers Association and three appointees made by the governor.

Separately, Patrick directed the Division of Banks to create regulations that will enhance mortgage-loan servicing standards to regulate third-party loan services. These regulations require lenders to consider all available loss-mitigation options before proceeding to foreclosure, similar to standards created in a recent national mortgage-servicer settlement with five national servicers. •

No comments on this story | Add your comment
Please log in or register to add your comment
PBN Hosted

Only a few seats remain for PBN's Manufacturing Awards Dinner and Ceremony, Thursday, April 24th, at the Bryant University Bello Center. Don't hesitate. Register today!
  • Business Women
    Accomplished. Confident. Wicked Smart. Nominate women you know who deserve speci ...
  • 40 Under Forty
    It's the 10th Anniversary of 40 Under Forty, and PBN is planning a special event ...
  • Healthiest Employers
    Enrollment now open for the 2014 Healthiest Employers Program. Please take a mom ...
Purchase Data
Book of Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  • Purchase an e-File of the entire Book of Lists database
  • Purchase a printed copy of the Book of Lists
    Latest News