Bill > H1983

This bill adds a new section to Massachusetts law that establishes protections for borrowers with subordinate mortgages (secondary loans on residential property) by defining unlawful practices in mortgage servicing and foreclosure. The bill creates a comprehensive set of requirements for creditors, including prohibitions against failing to communicate with borrowers, not providing required notices about loan transfers or pre-foreclosure actions, demanding payment on time-barred debts, and other predatory practices. If a creditor is found to have engaged in these unlawful practices, a court may impose significant penalties such as waiving interest and fees, stopping foreclosure proceedings, releasing liens, removing negative credit reporting, and awarding damages to the borrower. The bill requires creditors to provide notices in both English and Spanish, with a clear warning about the importance of translation. Additionally, the Attorney General is empowered to create and enforce regulations related to these provisions, with the ability to recommend revoking a creditor's license for violations. Notably, any violation is considered a per se violation of Massachusetts consumer protection law, which creates a presumption of damages and potential grounds for license revocation. The bill aims to protect homeowners from unfair practices in the servicing and potential foreclosure of secondary mortgage loans.

Justice

https://malegislature.gov/Bills/194/H1983