Skip to main content

Massachusetts AG Coakley Highlights Proposal to Prevent Foreclosures

NationalMortgageProfessional.com
Jun 17, 2011

Massachusetts Attorney General Martha Coakley has highlighted her proposed legislation to address the ongoing mortgage foreclosure crisis that has hit the state of Massachusetts. "An Act to Prevent Unnecessary and Unreasonable Foreclosures," sponsored by Sen. Karen Spilka and Rep. Steven M. Walsh, requires that creditors take reasonable steps to avoid foreclosure and prohibits foreclosures without appropriate documentation. "An Act to Prevent Unnecessary and Unreasonable Foreclosures" will also prevent additional foreclosures by mandating loan modifications in certain circumstances. AG Coakley discussed the legislation during her keynote address at the North Shore Association of Realtors’ Annual Membership Meeting and Business Expo in Peabody, Mass. “Our communities have been devastated by the housing crisis,” said AG Coakley. “The proposed legislation will help rebuild our communities by promoting a process in which creditors and borrowers work together. Requiring creditors to take reasonable efforts to avoid unnecessary foreclosure is in everyone’s best interest.” The legislation targets loans generally considered to have a higher risk of default, such as interest-only loans, adjustable-rate mortgages (ARMs), and loans with short-term introductory interest rates. Under the bill, creditors are required to have appropriate documentation that supports their right to foreclose prior to beginning foreclosure proceedings and are prohibited from passing on certain fees and costs associated with foreclosure to homeowners. The legislation makes the failure to comply with the law a violation of the Massachusetts Consumer Protection Act. Since taking office in January 2007, combating the foreclosure crisis has remained a priority of Coakley’s administration. During this economic crisis, Coakley’s office has taken on Wall Street and big banks to recover more than $440 million for taxpayers and keeping more than 15,000 people in their homes. The office has brought predatory lending cases against two major sub-prime lenders, Fremont Investment & Loan/Fremont General and H&R Block/Option One Mortgage Corporation. Coakley’s Office has also reached settlements with investment giants Goldman Sachs and Morgan Stanley for their role in securitizing sub-prime loans. Additionally, the AG’s Office has brought enforcement actions against mortgage professionals who engaged in loan application fraud and other loan origination misconduct. 
Published
Jun 17, 2011
Fed Slows Rate Hike Pace, OK’s 0.25% Bump

Rate hike is 8th since March 2022.

Regulation and Compliance
Feb 01, 2023
Report: Fannie, Freddie Note Sales Undercut Homeownership Goals

National Consumer Law Center report says sales to private investors strip borrowers of access to loss-mitigation options.

Regulation and Compliance
Jan 31, 2023
FHA Expands COVID-19 Recovery Loss-Mitigation Options

Updated and expanded options intended to help more borrowers avoid foreclosure.

Regulation and Compliance
Jan 31, 2023
Complex Algorithms Causing Complex Compliance Issues

Complying with Reg B and ECOA on adverse action

Regulation and Compliance
Jan 27, 2023
The State Of Remote Work In Mortgage

Regulations are catching up with remote work, are you prepared?

Regulation and Compliance
Jan 27, 2023
Becoming The Interest Rate Expert

Understand the five main variable components of rate-sheet pricing and interest rates

Regulation and Compliance
Jan 27, 2023