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.