Bill > H550

This bill aims to facilitate alternatives to foreclosure by requiring mortgage lenders to mediate in good faith with homeowners before starting foreclosure proceedings. The key provisions include: 1. Establishing the Massachusetts Foreclosure Mediation Program, a neutral third-party mediation process between borrowers and lenders' representatives to explore alternatives to foreclosure, such as loan modifications, principal reductions, or short sales. 2. Requiring lenders to provide borrowers with a notice of their right to mediation and the mediation request form, and prohibiting lenders from accelerating the loan or initiating foreclosure unless the mediator certifies that the lender participated in good faith. 3. Outlining the mediation process, including the information and documents that must be provided by both parties, the timeline for the mediation, and the potential outcomes, such as a modified mortgage loan or a certificate of good faith effort if no agreement is reached. 4. Establishing procedures for recording modified mortgage loans and requirements for foreclosure notices and entries to reference the mediation process. 5. Providing for the funding of the mediation program through a $50 surcharge on foreclosure complaint filing fees, with borrowers potentially contributing up to 15% of the total mediation cost. 6. Requiring the Mediation Program Manager to develop guidelines and standards for mediator training and ensure the security and confidentiality of information received. 7. Mandating annual reporting on the program's activities and outcomes.

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https://malegislature.gov/Bills/190/H550