Our elected officials are falling over themselves to propose new legislation intended to protect borrowers from overzealous lenders (and, borrowers from themselves, perhaps?).
* State Attorney General Martha Coakley urged a key State House committee to consider making subprime mortgage fraud a criminal offense. Currently, mortgage fraud involving lenders other than banks is considered a civil offense.
* [Secretary of State William Galvin] suggests that mortgage companies get permission from the courts before seizing a home from delinquent borrowers. Massachusetts is one of 20 states that do not require court approval when homeowners default on mortgage payments.
* State Senator Jarrett Barrios (D-Fluffernutter) currently has a bill under consideration that would mandate the licensing of loan officers, pre-closing reviews of mortgage terms by third parties and a 30-day period for delinquent borrowers to make up any past-due amounts without penalty.
All of these sound good to me. I worry that people are moving a little fast on this whole thing, but whatever.
Source: Greater Boston Real Estate Board (3rd item)