Bill > S547

This bill establishes the Massachusetts Foreclosure Mediation Program (MFMP), which requires mortgage lenders to engage in mediation with borrowers facing foreclosure before initiating foreclosure proceedings. The key provisions include: - Defining the roles and responsibilities of the parties involved, such as the "borrower," "creditor," "mediator," and "modified mortgage loan." - Requiring lenders to provide borrowers with a notice of the right to mediation and a mediation request form when sending a notice of foreclosure. - Outlining the mediation process, including the required information to be provided by both the lender and borrower, and the potential outcomes such as loan reinstatement, modification, or short sale. - Prohibiting lenders from foreclosing unless they have participated in the mediation program in good faith and obtained a certificate verifying their compliance. - Establishing guidelines for the mediation program, including funding through a $50 surcharge on foreclosure complaints and a cap on the borrower's portion of mediation fees. - Ensuring the confidentiality of information exchanged during the mediation process. - Requiring the MFMP to provide annual reports on the program's outcomes and effectiveness. Overall, the bill aims to facilitate alternatives to foreclosure and help homeowners retain their homes through a structured mediation process.

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https://malegislature.gov/Bills/191/S547