New regulations filed by the state Division of Banks will prevent national and state lenders from foreclosing on certain mortgage loans if a modification costs less, officials said.
The regulations, created as a result of a law signed by Gov. Deval Patrick in August 2012, will require lenders to consider all available loss-mitigation options before proceeding to foreclosure, similar to standards created in the national mortgage servicer settlement between the U.S. attorneys general with five national servicers.
Lenders must compare the cost of mortgage loan modification to the cost of foreclosing, using a net-present-value analysis prior to foreclosing on certain mortgage loans, such as those with teaser rates, interest-only payments or loans that were originated without full documentation. And the analysis must mirror models available through the Home Affordable Mortgage Program, the Federal Deposit Insurance Corporation, MassHousing or a model approved by the state Division of Banks.
“These regulations are the strongest on the books so far and are an added tool for homeowners across the commonwealth,” Barbara Anthony, undersecretary of consumer affairs and business regulation, said in a statement. “Lenders are now required to do a net-present-value analysis before foreclosing. The absence of a requirement like this was certainly a factor in the foreclosure crisis, and we in Massachusetts have taken strong action to remedy this.”
The law also requires lenders beginning Sept. 18 to send a notice to borrowers informing them of their right to request a loan modification for certain mortgage loans.
Jon Skarin, senior vice president at the Massachusetts Bankers Association, noted that the protections contained in the regulations don’t apply to every borrower; rather, they apply to ones who took out loans the Legislature deemed more risky or prone to default.
“We’re still pushing hard for protections,” said Steve Meacham, an organizer at City Life/Vida Urbana, a grassroots housing-justice group. “This law took a step forward, but there’s still a lot to be done.”
New
regulations filed by the state Division of Banks will prevent national
and state lenders from foreclosing on certain mortgage loans if a
modification costs less, officials said.
The regulations, created as a result of a law signed by Gov. Deval Patrick in August 2012, will require lenders to consider all available loss-mitigation options before proceeding to foreclosure, similar to standards created in the national mortgage servicer settlement between the U.S. attorneys general with five national servicers.
Lenders must compare the cost of mortgage loan modification to the cost of foreclosing, using a net-present-value analysis prior to foreclosing on certain mortgage loans, such as those with teaser rates, interest-only payments or loans that were originated without full documentation. And the analysis must mirror models available through the Home Affordable Mortgage Program, the Federal Deposit Insurance Corporation, MassHousing or a model approved by the state Division of Banks.
“These regulations are the strongest on the books so far and are an
added tool for homeowners across the commonwealth,” Barbara Anthony,
undersecretary of consumer affairs and business regulation, said in a
statement. “Lenders are now required to do a net-present-value analysis
before foreclosing. The absence of a requirement like this was certainly
a factor in the foreclosure crisis, and we in Massachusetts have taken
strong action to remedy this.”
The law also requires lenders beginning Sept. 18 to send a notice to borrowers informing them of their right to request a loan modification for certain mortgage loans.
Jon Skarin, senior vice president at the Massachusetts Bankers Association, noted that the protections contained in the regulations don’t apply to every borrower; rather, they apply to ones who took out loans the Legislature deemed more risky or prone to default.
“We’re still pushing hard for protections,” said Steve Meacham, an organizer at City Life/Vida Urbana, a grassroots housing-justice group. “This law took a step forward, but there’s still a lot to be done.”
- See more at: http://bostonherald.com/business/real_estate/2013/06/new_regulations_add_protections_for_homeowners_facing_foreclosure#sthash.D4w5WcWL.dpuf
The regulations, created as a result of a law signed by Gov. Deval Patrick in August 2012, will require lenders to consider all available loss-mitigation options before proceeding to foreclosure, similar to standards created in the national mortgage servicer settlement between the U.S. attorneys general with five national servicers.
Lenders must compare the cost of mortgage loan modification to the cost of foreclosing, using a net-present-value analysis prior to foreclosing on certain mortgage loans, such as those with teaser rates, interest-only payments or loans that were originated without full documentation. And the analysis must mirror models available through the Home Affordable Mortgage Program, the Federal Deposit Insurance Corporation, MassHousing or a model approved by the state Division of Banks.
The law also requires lenders beginning Sept. 18 to send a notice to borrowers informing them of their right to request a loan modification for certain mortgage loans.
Jon Skarin, senior vice president at the Massachusetts Bankers Association, noted that the protections contained in the regulations don’t apply to every borrower; rather, they apply to ones who took out loans the Legislature deemed more risky or prone to default.
“We’re still pushing hard for protections,” said Steve Meacham, an organizer at City Life/Vida Urbana, a grassroots housing-justice group. “This law took a step forward, but there’s still a lot to be done.”
- See more at: http://bostonherald.com/business/real_estate/2013/06/new_regulations_add_protections_for_homeowners_facing_foreclosure#sthash.D4w5WcWL.dpuf
New
regulations filed by the state Division of Banks will prevent national
and state lenders from foreclosing on certain mortgage loans if a
modification costs less, officials said.
The regulations, created as a result of a law signed by Gov. Deval Patrick in August 2012, will require lenders to consider all available loss-mitigation options before proceeding to foreclosure, similar to standards created in the national mortgage servicer settlement between the U.S. attorneys general with five national servicers.
Lenders must compare the cost of mortgage loan modification to the cost of foreclosing, using a net-present-value analysis prior to foreclosing on certain mortgage loans, such as those with teaser rates, interest-only payments or loans that were originated without full documentation. And the analysis must mirror models available through the Home Affordable Mortgage Program, the Federal Deposit Insurance Corporation, MassHousing or a model approved by the state Division of Banks.
“These regulations are the strongest on the books so far and are an
added tool for homeowners across the commonwealth,” Barbara Anthony,
undersecretary of consumer affairs and business regulation, said in a
statement. “Lenders are now required to do a net-present-value analysis
before foreclosing. The absence of a requirement like this was certainly
a factor in the foreclosure crisis, and we in Massachusetts have taken
strong action to remedy this.”
The law also requires lenders beginning Sept. 18 to send a notice to borrowers informing them of their right to request a loan modification for certain mortgage loans.
Jon Skarin, senior vice president at the Massachusetts Bankers Association, noted that the protections contained in the regulations don’t apply to every borrower; rather, they apply to ones who took out loans the Legislature deemed more risky or prone to default.
“We’re still pushing hard for protections,” said Steve Meacham, an organizer at City Life/Vida Urbana, a grassroots housing-justice group. “This law took a step forward, but there’s still a lot to be done.”
- See more at: http://bostonherald.com/business/real_estate/2013/06/new_regulations_add_protections_for_homeowners_facing_foreclosure#sthash.D4w5WcWL.dpuf
The regulations, created as a result of a law signed by Gov. Deval Patrick in August 2012, will require lenders to consider all available loss-mitigation options before proceeding to foreclosure, similar to standards created in the national mortgage servicer settlement between the U.S. attorneys general with five national servicers.
Lenders must compare the cost of mortgage loan modification to the cost of foreclosing, using a net-present-value analysis prior to foreclosing on certain mortgage loans, such as those with teaser rates, interest-only payments or loans that were originated without full documentation. And the analysis must mirror models available through the Home Affordable Mortgage Program, the Federal Deposit Insurance Corporation, MassHousing or a model approved by the state Division of Banks.
The law also requires lenders beginning Sept. 18 to send a notice to borrowers informing them of their right to request a loan modification for certain mortgage loans.
Jon Skarin, senior vice president at the Massachusetts Bankers Association, noted that the protections contained in the regulations don’t apply to every borrower; rather, they apply to ones who took out loans the Legislature deemed more risky or prone to default.
“We’re still pushing hard for protections,” said Steve Meacham, an organizer at City Life/Vida Urbana, a grassroots housing-justice group. “This law took a step forward, but there’s still a lot to be done.”
- See more at: http://bostonherald.com/business/real_estate/2013/06/new_regulations_add_protections_for_homeowners_facing_foreclosure#sthash.D4w5WcWL.dpuf
New
regulations filed by the state Division of Banks will prevent national
and state lenders from foreclosing on certain mortgage loans if a
modification costs less, officials said.
The regulations, created as a result of a law signed by Gov. Deval Patrick in August 2012, will require lenders to consider all available loss-mitigation options before proceeding to foreclosure, similar to standards created in the national mortgage servicer settlement between the U.S. attorneys general with five national servicers.
Lenders must compare the cost of mortgage loan modification to the cost of foreclosing, using a net-present-value analysis prior to foreclosing on certain mortgage loans, such as those with teaser rates, interest-only payments or loans that were originated without full documentation. And the analysis must mirror models available through the Home Affordable Mortgage Program, the Federal Deposit Insurance Corporation, MassHousing or a model approved by the state Division of Banks.
“These regulations are the strongest on the books so far and are an
added tool for homeowners across the commonwealth,” Barbara Anthony,
undersecretary of consumer affairs and business regulation, said in a
statement. “Lenders are now required to do a net-present-value analysis
before foreclosing. The absence of a requirement like this was certainly
a factor in the foreclosure crisis, and we in Massachusetts have taken
strong action to remedy this.”
The law also requires lenders beginning Sept. 18 to send a notice to borrowers informing them of their right to request a loan modification for certain mortgage loans.
Jon Skarin, senior vice president at the Massachusetts Bankers Association, noted that the protections contained in the regulations don’t apply to every borrower; rather, they apply to ones who took out loans the Legislature deemed more risky or prone to default.
“We’re still pushing hard for protections,” said Steve Meacham, an organizer at City Life/Vida Urbana, a grassroots housing-justice group. “This law took a step forward, but there’s still a lot to be done.”
- See more at: http://bostonherald.com/business/real_estate/2013/06/new_regulations_add_protections_for_homeowners_facing_foreclosure#sthash.D4w5WcWL.dpuf
The regulations, created as a result of a law signed by Gov. Deval Patrick in August 2012, will require lenders to consider all available loss-mitigation options before proceeding to foreclosure, similar to standards created in the national mortgage servicer settlement between the U.S. attorneys general with five national servicers.
Lenders must compare the cost of mortgage loan modification to the cost of foreclosing, using a net-present-value analysis prior to foreclosing on certain mortgage loans, such as those with teaser rates, interest-only payments or loans that were originated without full documentation. And the analysis must mirror models available through the Home Affordable Mortgage Program, the Federal Deposit Insurance Corporation, MassHousing or a model approved by the state Division of Banks.
The law also requires lenders beginning Sept. 18 to send a notice to borrowers informing them of their right to request a loan modification for certain mortgage loans.
Jon Skarin, senior vice president at the Massachusetts Bankers Association, noted that the protections contained in the regulations don’t apply to every borrower; rather, they apply to ones who took out loans the Legislature deemed more risky or prone to default.
“We’re still pushing hard for protections,” said Steve Meacham, an organizer at City Life/Vida Urbana, a grassroots housing-justice group. “This law took a step forward, but there’s still a lot to be done.”
- See more at: http://bostonherald.com/business/real_estate/2013/06/new_regulations_add_protections_for_homeowners_facing_foreclosure#sthash.D4w5WcWL.dpuf
Wednesday, June 26, 2013
Wednesday, June 26, 2013
Wednesday, June 26, 2013
Wednesday, June 26, 2013
Wednesday, June 26, 2013
New
regulations add protections for homeowners facing foreclosure - See
more at:
http://bostonherald.com/business/real_estate/2013/06/new_regulations_add_protections_for_homeowners_facing_foreclosure#sthash.D4w5WcWL.dpuf
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