In order to increase the pace of lenders responding to homeowners hardest hit by the foreclosure crisis, Gov. Deval Patrick, D-Mass., has asked the Division of Banks 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 the governor's office, this first-in-the-nation action enhances one of the key provisions of the commonwealth's new foreclosure prevention law, signed by the governor in November 2007, which made Massachusetts the only state in the country to extend its already aggressive requirements to non-bank mortgage lenders.
Under the previous requirements, mortgage lenders' records of helping to meet the mortgage credit needs of the areas within which they do business are evaluated through public examinations and ratings. This latest action would 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.
‘More can be and must be done to help those homeowners who are most at risk of losing their homes,’ states Patrick. ‘It is important that all lenders do their part by being responsive to those who face the threat of foreclosure. Today's action is intended to hold lenders responsible for the quality of their response and push for the most successful and immediate solution that will allow borrowers to remain in their homes.’
Source: Office Of Governor Deval Patrick