• DYE CULIK PC | Consumer Protection Division

Massachusetts Issues New Mortgage Servicing and Foreclosure Regulations


In addition, the regulation makes other requirements, including:

  1. Certifying in writing, prior to foreclosing, that the bank has the right to foreclose.

  2. Properly evaluating homeowners for all loss-mitigation options, such as loan modifications.

  3. Not foreclosing if the homeowner has submitted a loan-modification application prior to foreclosure.

  4. Proving a designate point of contact for homeowners being reviewed for loan modifications.

Some of these requirements will also become effective under federal law in January of 2014.

There is also an additional regulation, intended to get around any potential arguments by banks to use the consumer-protection provisions against homeowners, stating that nothing in the regulations should be used to prevent a homeowner from getting assistance with preventing foreclosure.

A violation of any of these requirements is a violation of Chapter 93A, the Massachusetts Consumer Protection Act.

The regulations are available online.

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