The amendments to this regulation become effective on June 21, 2013. The form of notice for the “Right to Request a Modified Mortgage Loan” set forth in 209 CMR 56.09 may be followed on a voluntary basis until September 17, 2013. Use of the form of notice specifically provided under 209 CMR 56.09 will become mandatory on Wednesday, September 18, 2013.
Net Present Value (NPV) is a way of comparing the value of money now with the value of money in the future. A dollar today is worth more than a dollar in the future because inflation reduces the buying power of the future money. As a requirement of An Act Preventing Unlawful and Unnecessary Foreclosures, a NPV analysis will be conducted for certain mortgage loans. Lenders cannot foreclose on a homeowner if modifying a certain mortgage loan will cost the lender less than foreclosure will cost the lender.
Chapter 194, An Act Preventing Unlawful and Unnecessary Foreclosures, requires a creditor to report the final outcome of each loan modification on all loans for which a notice of the right to request a modified mortgage loan was sent. This report is to be submitted semi-annually to the Massachusetts Division of Banks 40 days after the reporting period end-date. To assist with submission of these outcomes to the Division, a worksheet has been provided to be used for 35B submissions. If a creditor does not have a final 35B outcome or 35B notice/s to report, a submission is NOT required.
Filing Notices Required by the Act
A copy of the notice required by Section 35B must be filed with the Attorney General’s Office. The address to send this notice is available here