Alert June 17, 2008

Massachusetts Seeks to Increase Lender Responsiveness to Loan Modification Requests

Massachusetts Governor Deval Patrick asked the Massachusetts Division of Banks to begin evaluating state licensed mortgage lenders on the basis of the speed and number of loan modifications they complete for delinquent borrowers seeking help. The request is intended to enhance a provision in Massachusetts’ recently enacted foreclosure prevention law, which extends Community Reinvestment Act-type requirements to non-bank mortgage lenders. Under the CRA, the Division of Banks evaluates a lender’s record of helping to meet the mortgage credit needs of the areas within which it does business and this effort would become part of the evaluation. Click here for a copy of the Governor’s press release.