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Massachusetts to evaluate mortgage lenders
New regulation, monitoring lender loan modification sets national standard in addressing foreclosure crisis June 3, 2008 ... The Patrick-Murray Administration has asked the Division of Banks (DOB) to begin evaluating all state licensed mortgage lenders on the basis of the speed and number of loan modifications they complete for delinquent borrowers seeking help, according to Sen. Richard T. Moore, D-Uxbridge. “I applaud the Patrick-Murray Administration for taking this bold step in preventing foreclosures in the Commonwealth,” said Moore. “We must hold lenders responsible to a quality response for assistance, and should make it possible for residents to remain in their homes.” This action is the first of its kind in the nation, and will enhance one of the key provisions of the Commonwealth’s new foreclosure prevention law, which made Massachusetts the only state in the country to extend its already aggressive Community Reinvestment Act (CRA) type requirements to non-bank mortgage lenders. Under CRA requirements, mortgage lenders’ records of helping to meet the mortgage credit needs of the areas in which they do business can be evaluated through public examinations and ratings. The Commonwealth’s new action would further extend CRA to include this evaluation through proposed regulation and the pace at which all state licensed mortgage lenders address the needs of the borrowers and modify loans will be assessed and made public. A recent report from the Pew Charitable Trusts examined how states have responded to the national crisis. The study cited Massachusetts’ new 90-day right to cure a mortgage default and other initiatives, ranking Massachusetts in the top tier of states that have launched ample foreclosure prevention plans. |
