MA Division of Banks Advises Lenders and Services to Offer Mortgage Relief
/Due to the outbreak of of the novel coronavirus (COVID-19) in Massachusetts, the Division of Banks has strongly encouraged and advised all Banks, mortgage servicers and mortgage lenders to implement homeowner relief programs to assist real estate owners in Massachusetts who face financial difficulty. The main objective is to ensure that the financial service industry provides programs and assistance to homeowners so that they may avoid the eventual loss of their family home. (These guidelines are not mandatory at the time of this Blog entry). The recommendations include the following:
Postponing all real estate foreclosures for a period of 60 days;
Waiving late payment fees and any online payment fees for all monthly mortgage payments for a period of 60 days;
Forbearing mortgage payments for 60 or more days from their monthly due dates;
Refraining from reporting late payments to consumer reporting agencies for 60 days;
Providing loan modification assistance to mortgage borrowers;
Ensuring that the servicing operations are active and that homeowners can reach the lender with questions and concerns;
Contacting Borrowers to ensure that they are aware of any mortgage relief options.
Northshore Legal specializes in commercial and residential real estate, and represents clients throughout Eastern Massachusetts. We will keep you updated on the developing events concerning the current pandemic.