BOSTON - Gov. Deval Patrick has signed legislation designed to offer much-needed relief to homeowners struggling with soaring mortgage costs.
The law ensures the necessary legal and regulatory framework is in place to prevent mortgage crises for homeowners across the state, say state officials. With the provisions of this bill now law, Massachusetts has one of the most consumer protective mortgage lending statutes in the country.
"This legislation is a critical step in protecting homes, families and communities throughout the commonwealth," said Patrick. "These reform measures will give the commonwealth and its citizens some of the tools necessary to fight the surge in home foreclosures and unfair lending practices."
The legislation is the result of the coordinated efforts of the Patrick administration, House and Senate leadership and members, Attorney General Martha Coakley and Boston Mayor Thomas Menino. It also draws upon the recommendations of the Mortgage Summit Group, a partnership of 50 participants with a wide range of expertise � from nonprofit agencies, government agencies and the mortgage lending industry.
"The mortgage lending bill enacted by the Legislature and signed today by Governor Patrick marks another important step to address the subprime lending crisis and to prevent future abuses in mortgage lending," said Coakley. "We appreciate the governor's and the Legislature's attention to this matter, and look forward to ongoing collaboration as we continue our work to address issues around predatory lending in the commonwealth."
The statute creates a centralized statewide database of foreclosure activity to monitor and analyze foreclosures and foreclosure patterns at the Division of Banks and mandates that mortgage holders file a 90-day notice of intent to foreclose with the homeowner and the Division of Banks.
Further, this bill requires mortgagees to receive consumer counseling prior to obtaining nonconforming variable rate mortgage loans
Provisions of the law include:
● Improved oversight and monitoring of certain mortgage lenders.
● Requiring loan originators to be licensed by the Division of Banks and providing a $3 million appropriation to the division to implement the provisions of the bill.
● Extending $2 million in grants to establish 10 education centers around the state and promote first-time homebuyer and foreclosure counseling.
● Granting tenants of foreclosed properties additional rights.
● Requiring every mortgage to have endorsed on it the name, address, and license number of the mortgage broker and mortgage originator, if applicable.
● Mandating an accounting of the disposition of the proceeds of a foreclosure sale to a foreclosed consumer, including whether there is any surplus due to the consumer or if any deficiency remains.
● Requiring a 90-day "right to cure," or intent to bring a loan current, and that a notice of the right to cure be filed with the Division of Banks.
● Establishing the database to include information on all preliminary right to cure or foreclosure filing notices and all final foreclosure sale information.
● Requiring that the holder of a mortgage notify the Division of Banks of the date of a foreclosure sale and the purchase price of the property.
● Prohibiting a subprime adjustable rate mortgage for first-time homebuyers unless they affirmatively opt into a subprime adjustable rate product and get in-person counseling from a certified counselor.
A number of legislators played critical roles in the passage of the legislation.
"This new law will help protect homebuyers from predatory lending and bring meaningful assistance to those facing foreclosure," said House Speaker Salvatore F. DiMasi, D-Boston. "This problem is only going to get worse so acting now with this bold measure is critically important."
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Lanesborough Town Meeting to Vote Budget, Bylaws & Vehicle Purchases
By Breanna SteeleiBerkshires Staff
LANESBOROUGH, Mass. — Tuesday's annual town meeting includes a $14 million operating budget, new short-term rentals, accessory dwelling units and sign bylaws, and free cash article appropriations.
Voters will gather at Lanesborough Elementary School on June 9 at 6 p.m. to decide on 20 warrant articles.
The fiscal 2027 budget is up a little over 10 percent. Some of the main increases are the Mount Greylock Regional School District and McCann Technical School: the McCann assessment is up more than 30 percent based on factors including enrollment and the school renovation project, and Mount Greylock's is up 11 percent.
Article 11 is for the town to vote to approve from free cash the sum of $16,298.48 for the McCann Technical School roof and window replacement project so as not to impact the budget. Article 3 is appropriate $7,586,284 for Mount Greylock Regional School assessment.
Another notable increase was in life and health insurance, showing an increase of about 26 percent.
Ambulance Director Jen Weber is planning 24-hour coverage, which means more staff and a hike in her budget. One of the articles asks the town to appropriate $234,100 to operate the Ambulance Enterprise Fund for salaries and expenses.
Many town departments are looking for new vehicles. The Fire Department is looking to replace its outdated 1996 fire engine. There are two articles related to the truck at a total of $813,366. Article 12 would transfer $225,000 from free cash into the Fire Truck Stabilization Fund; Article 13 would transfer $605,000 from the fund and authorize the borrowing of $208,366.08.
The total includes a $100,000 contingency cost to cover any additional costs if a 2026 model-year chassis cannot be secured before new emissions standards go into effect in 2027.
The board at its last meeting moved the $225,000 transfer to come before the borrowing article, changing the stabilization number. If the $225,000 is not voted on, then they will amend the next article's number on the floor, subtracting the $225,000. This shows the borrowing number significantly lower.
Article 17 asks for the transfer of $80,000 from free cash to replace a police cruiser.
Police Chief Rob Derksen's aim is to replace one vehicle every other year, meaning the oldest vehicle gets replaced about every 10 years.
He stressed that if delayed this year, the town may have to double up in a future year to get back on schedule, and that paying later usually costs more. The article will ask for $80,000 from free cash, the vehicles used to be funded by the BHRD.
Lastly, the Highway Department is looking to replace a 2014 International dump truck that will be a total of $330,000 and will take two to three years to receive.
Money will be used from last year's approval of $250,000 from free cash for the replacement of a 2012 highway front-end loader that was underspent $49,261. Town meeting is being asked to approve a transfer of $53,274.85 from free cash and the use of $227,464 from funds from the Sale of Town Real Estate to fund the balance.
Other free cash proposals include $1,200 to purchase software to support tracking and ongoing maintenance schedules of town-owned vehicles; $42,000 for the replacement of the Highway Department's storage shed roof, $200,000 to reduce the tax levy.
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