Wednesday, April 25, 2007

Gov Patrick Proposes Changes on Foreclosures

I'll let you all analyze it, but here's part of his press release:

Proposed Legislative Action

  • The criminalization of mortgage fraud
  • Prohibiting abusive foreclosure rescue schemes
  • Creating a mandatory pre-foreclosure filing notice with a copy to be filed with the Division
  • Establishing a central repository of foreclosure notices at the Division; and
  • Updating various provisions of the laws that currently govern the foreclosure process.

Consumer Advocacy/Education Action

  • Enhancing the Division’s mortgage hotline. The Division will partner with the National Consumer Law Center and NeighborWorks to implement a process whereby homeowners can call the Division’s toll free number and be directed to appropriate resources for assistance.
  • Implementing an awareness campaign designed to encourage homeowners having difficulty maintaining existing payments to seek immediate assistance by actively promoting the Division’s toll free number and NeighborWorks 24 hour foreclosure prevention hotline.
  • Developing a list of reputable foreclosure counselors that homeowners calling the Division’s mortgage hotline can be referred to and
  • Developing a listing of lenders willing to assist homeowners who are at risk of foreclosure.

Regulatory Action

  • Increasing the net worth/bonding requirements for licensed mortgage lenders and brokers. This action will raise barriers to entry thereby ensuring that companies with a limited financial stake cannot secure a license to do business in the Commonwealth.
  • Increasing licensing and examination fees for licensed mortgage lenders and brokers to increase enforcement capabilities and create a mortgage fraud unit.
  • Increasing the education and experience requirements for licensed mortgage lenders and brokers;
    Adopting a statement on subprime lending parallel to the draft federal guidance currently out for comment

Partnerships Action

  • By building on the partnerships between government, non-profit organizations, and industry created during the process of crafting the Mortgage Summit Report, the Division of Banks and other partnering entities can establish subcommittees or small working groups from members of the working groups and others within state government to focus on specific issues including:
  • Reviewing and identifying false, deceptive, and misleading advertising practices
  • Reviewing sales practices of real estate brokers and salespersons that refer clients to mortgage lenders and brokers
  • Improving the existing process of mortgage disclosure
  • Improving existing pre and post closing consumer education
  • Creating a web site on financial education; and
  • Developing a foreclosure intervention mortgage program.


Anonymous said...

I would also like to see a mandatory class in high schools that explained basic economic ideas to all students. What is a mortgage, IRA, credit card use, etc.

Anonymous said...

Mandatory, yes!

It surprises me the number of things people are supposed to understand magically and innately without being taught. One could add to that list: how to take care of the car, when to call the doctor, how to recognize phishing attacks, and how to balance a checkbook.


Ryan Adams said...

A "how to live 101" class would be an interesting - and probably informative class. Considering all the years we make people take health class, surely some of that time in high school could be spent on the basics of life. It's not a bad idea at all.

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