Bill > S1071

This bill adds a new section to Massachusetts law (Chapter 244) that establishes comprehensive protections for borrowers with subordinate mortgages, which are secondary mortgage loans secured against residential property. The bill defines a "creditor" broadly to include mortgage lenders, servicers, and investors, and outlines several unlawful practices in mortgage servicing and foreclosure, such as failing to provide written communications, not sending periodic statements, or demanding payment on a loan past the statute of limitations. If a creditor is found to have engaged in these practices, borrowers can petition the court for relief, and the court may take significant actions like waiving interest and fees, stopping foreclosure, terminating loan transfers, releasing liens, and removing negative credit reporting. The bill also requires creditors to provide notices in English and Spanish, with a clear warning about the importance of translation. Creditors found in violation can be liable for actual and punitive damages, and such violations are considered automatic violations of Massachusetts consumer protection law. The Attorney General is empowered to create regulations and potentially recommend revoking a creditor's license for non-compliance, providing strong enforcement mechanisms to protect borrowers from unfair mortgage servicing practices.

Budget and Finance, Justice

https://malegislature.gov/Bills/194/S1071