The Massachusetts House of Representatives yesterday unanimously passed House Bill 4087, “An Act to Prevent Unlawful and Unnecessary Foreclosures.” The bill is designed to get “borrowers and lenders to the table,” according to State Representative Michael Costello, the Co-Chair of the Committee on Financial Services.
The bill would mandate that banks and other lenders account for numerous factors before they can enter foreclosure proceedings on residential homeowners. Among those factors is the “borrower’s ability to pay,” a provision that will likely be addressed in future drafts of the legislation, or through regulations developed by the Massachusetts Division of Banks.
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