Public hearing to obtain information on the notice of a consumer's right to cure in advance of foreclosure and provisions relative to reverse mortgage loans

The Division of Banks (Division) will hold public hearings to obtain information on the notice of a consumer's right to cure in advance of foreclosure and provisions relative to reverse mortgage loans. The Division is seeking information and comments on both of these matters in advance of proposing regulations.

The contents of the statutory 150 Day Right To Cure Notice which must be given to a homeowner prior to the initiation of the foreclosure process are set out in subsection (h) of section 35 of chapter 244 of the General Laws, which also directs the Division to promulgate regulations. That statute, as rewritten by Chapter 258 of the Acts of 2010 (Chapter 258), specifies, among other things, 10 provisions of the Right To Cure Notice as well as a specified declaration. Procedures relating to the timing of the cure period; counseling information to be provided; alternatives to a foreclosure sale; and the language in which the declaration is to be printed are included within the Right To Cure Notice.

Chapter 258 also added an additional statute to the General Laws to govern reverse mortgages for borrowers over 60 years of age. That statute as well as the other reverse mortgage law authorize the Division to promulgate regulations. Together those laws cover the eligibility, procedures, disclosures and counseling requirements for a reverse mortgage program.

Other provisions of said Chapter 258 and the foreclosure process itself are not within the jurisdiction of the Division and not the subject of these informational hearings.

The Division intends to conduct at least three such informational hearings prior to initiating the formal rulemaking process. Interested parties should look to the Division's website, www.mass.gov/dob, for additional announcements relative to the hearings and subsequent rulemaking schedule.

The public hearings are currently scheduled for:

• Wednesday, January 19, 2011, 10:00 a.m., Brockton Public Library, Main Library Multi-Purpose Room, 304 Main Street, Brockton, MA 02301;
• Tuesday, January 25, 2011, 10:00 a.m., Lawrence Public Library, 51 Lawrence Street, Lawrence, MA 01841; and
• Tuesday, February 8, 2011, 10:00 a.m., Fitchburg State University, Hammond Campus Center, Room Alumni AB, 160 Pearl Street, Fitchburg, MA 01420; and
• Tuesday, February 8, 2011, 3:00 p.m., Springfield State Office Building, 436 Dwight Street, Room B-43, Springfield, MA 01103

Throughout this informational process, written comments on either or both subjects may be submitted to the Massachusetts Division of Banks, 1000 Washington Street, 10th Floor, Boston, Massachusetts 02118-6400 or at www.mass.gov/dob. All comments to the Division must be submitted by 5:00 p.m. on Friday February 11, 2011.