An Act Preventing Unlawful and Unnecessary Foreclosures

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.

Massachusetts law, 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, beginning with the period ending on December 31, 2012. To assist with submission of these outcomes to the Division, this worksheet should be completed with data for the relevant period and submitted to the Division of Banks by February 8, 2013.  If a creditor does not have a final outcome or notice sent to report for the period, no submission is 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