Mass. Lawmakers Pass Foreclosure Aid
The Massachusetts Legislature, after months of debate and thousands of foreclosures, passed a bill that provides protections for homeowners facing foreclosure while strengthening oversight of mortgage companies, the Boston Herald reported November 22, 2007.
"A key measure gives homeowners facing foreclosure a 90-day window to work out a deal with their lenders. Also included: mandatory counseling for first-time home buyers preparing to take out adjustable rate mortgages and $2 million for the nonprofit agencies that provide this service. The bill also allows residents who have lost their homes to remain as tenants at will and pay rent for up to six months."
Some so-called housing advocates were apparently disappointed the bill failed to include stiffer penalties that would make mortgage fraud a criminal offense.
"Tougher rules might have prevented some of the questionable lending that has sent foreclosure rates skyward, said Thomas Callahan, executive director of the Massachusetts Affordable Housing Alliance."
Of course no new law will prevent stupidity.
The bill also requires state exams for the vast majority of mortgage lenders and a system for rating mortgage companies. Governor Deval Patrick is expected to sign the bill into law next week.
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