Federal Mortgage Rule Unpopular with Homeowners

Foreclosures in MA are part of the overall foreclosure crisis in America. Consumers at present have 3 years to argue their case to lenders when there is fraud or deceit involved. The homeowner is still required to pay their mortgage however, even if less than judicious circumstances exist in its processing.

The following article touches on the subject of Foreclosures and homeowners in general.

Consumers, Senators Criticize Fed’s Proposed Mortgage Rule

by Credit.com on 01/06/2011

Under a new proposal from the Federal Reserve Board, which would amend the consumer protection laws passed over the summer, consumers would have to pay off a home loan even after they received bad information, before it could be terminated, according to a report from Dow Jones Newswires. Currently, Americans have three years to argue that lenders broke consumer protection laws, and perhaps force lenders to refinance or modify the loan.

“In this time of record foreclosures and reports of systemic problems with the operations of the largest mortgage servicers, the proposed revisions are unfortunate and unnecessary,” a group of Democratic U.S. Senators wrote to the Fed, according to the report. “The mortgage market needs greater oversight and accountability to restore borrower confidence lost in the mortgage crisis. The proposed rules would undermine this goal.”

The letter was signed by Senators Sherrod Brown of Ohio, Tim Johnson of South Dakota, and former Senator Chris Dodd, who used to head the Senate Banking Committee, the report said. A Fed spokeswoman told the news organization that the lawmakers’ suggestion will be taken under advisement.

Many consumers have been victimized by improperly handled mortgages over the last few years, and many have faced foreclosure as a result.

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Crowley & Cummings are real estate attorneys located in Dedham MA specializing in real estate closings, title examinations, complex title issues, purchase & sale agreements, condo conversions, and other related services. They service lenders and mortgage brokers, real estate agents, as well as buyers and sellers in Massachusetts, New England, and throughout the US. To learn more visit them online at www.CrowleyCummings.com.

RI Attorney General Addresses Housing Issues

On May 15, 2010, Rhode Island's campaigning candidate for governor, Attorney General Patrick C. Lynch announced a plan to instill borrower-protection on all home sales in Rhode Island. The plan would include requirements for foreclosure counseling for borrowers, notice to homeowners and tenants of pending foreclosures, and provisions for allowing people who lose their homes to foreclosure, to rent from the lender.

The plan would further incorporate ideas being used in other states involving free legal representation and requiring brokers to recommend mortgages, a comprehensive listing of all foreclosed homes in the state, and refinancing based upon the best interest of the borrowers.

The addition of more use of the federal Housing and Urban Development programs and giving permission to the state's land bank to rehabilitate and purchase foreclosed properties in both suburban and rural communities, would not alleviate the already 130 properties currently in the state's land bank for which there are no funds for rehabilitation purposes.

The full article follows below:
http://www.projo.com/news/content/LYNCH_FORECLOSURE_PLAN_05-15-10_PUIFGBE_v64.3a9b3dc.html

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Crowley & Cummings are real estate attorneys located in Dedham MA specializing in real estate closings, title examinations, complex title issues, purchase & sale agreements, condo conversions, and other related services. They service lenders and mortgage brokers, real estate agents, as well as buyers and sellers in Massachusetts, New England, and throughout the US. To learn more visit them online at www.CrowleyCummings.com.