|Referenced Sources:||Chapter 194 of the Acts of 2012|
On August 3, 2012, Chapter 194 of the Acts of 2012, An Act Preventing Unlawful and Unnecessary Foreclosures, was signed into law. The Act contains an emergency preamble which makes the law effective immediately. There are a number of provisions that establish additional requirements for mortgage creditors in the mortgage foreclosure process but the most immediate issue is how mortgage lenders initiating a foreclosure after the effective date of Chapter 194 comply with the requirements of the new Section 35B of General Laws chapter 244. Section 35B requires that mortgage creditors, prior to beginning the foreclosure process, send a notice of the right to pursue a mortgage loan modification to a borrower who is deemed to have a "certain mortgage loan" as defined by the statute. At the request of banks, credit unions, and licensed mortgage lenders, this guidance is intended to promote a consistent response to the new requirements of Chapter 194.