According to the Associated Press, Massachusetts yesterday endorsed legislation in its Senate to help homeowners faced with the prospect of foreclosure, and to put a stop on fraudulent and harmful practices by the mortgage industry.
Mortgage brokers would have to obtain a license to work in Massachusetts and mortgage fraud would become a felony. The measure would crack down on deceptive advertising, give homeowners a last-minute opportunity to avoid a foreclosure auction and require borrowers to educate themselves to risks.
The Senate bill also proposes the creation of a state subsidy for businesses that pay portions of employees’ housing costs. Buoniconti said the goal was to have the state eventually contribute $1 for every $2 spent by businesses that help their employees pay for homes.
It is great to see that some of the states are finally starting to act, but I hope it is not too little, too late. The aftermath of the recent real estate bubble has resulted in record foreclosures across the nation. This was easily predicted as an obvious result to poor lending practices and worse government oversight of the lending industry.
Related posts:
- Senate Hearing: The Housing Bubble and its Implications for the Economy
- U.S. Securities and Exchange Commission Charges Pinnacle Development Partners, LLC With Fraud
- Upsurge in Foreclosures Due to Rising Mortgage Payments . . . it took top Fed officials to figure that out!
- Finding Mortgage Limits on FHA Loans
- Refinance Before Making Late Mortgage Payments
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{ 9 comments… read them below or add one }
not sure about the specifics of this plan but it is very good to see some action for helping people with this crazy housing market.
I am curious about the proposal to crack down on “rescue schemes”. I wonder if they are going to limit investors availability to buy pre-foreclosures.
I think the whole idea of bailing out people facing foreclosure is only going to delay the inevitable. If you don’t know how to manage your money before the re-finance, how are you going to know how after it?
I like the idea of educating people about the risks involved. I think education should be the focus. Even more than just basic education about risks, though.
I always wondered why basic financial education isn’t mandatory in high school and college. How to balance a checkbook or live by a budget is beyond 95% of our population’s understanding. Let alone delayed gratification and living below your means.
I had no idea that the real estate market in the US had fallen this bad. Whilst the rest of the world seems to enjoy a boom in house prices it looks like Americans are really suffering from the “dodgy” lending that has gone on. I can say I’ve learnt something today!
They need tighter laws on mortgages/loans. To many people scamming to make a quick buck against the innocent first timers. They get in over their head then they’re foreclosing before you know it.
“Mortgage brokers would have to obtain a license to work in Massachusetts”
Wow, it’s sad that some states are just realizing now that they need licensing for LO’s… In Nevada, brokers AND bankers both have to be licensed. -Jason in Vegas
It says mortgage brokers would have to be licensed to work is Mass…am I missing something? Don’t they already have to be licensed?
people can stop foreclosure if they have the right information.
predatory lending is creating a lot of these default.
get the information here you need to save your home.
People can still get through this.. but, like stated: atleast they’re doing something about it. Lets hope it just gets better..
This reminds me of the Maryland Protection of Homeowners in Foreclosure Act of 2005, which was partly put in place to keep predatory investors from approaching people in foreclosure directly. That created a whole new profession called Foreclosure Consultants. What’s next, Mortgage Consultants?