Posted by:
Steve Dubb
Massachusetts, 9 other states, pass laws to stem foreclosure tide
The National Alliance of Community Economic Development Associations, an association whose membership includes 27 state, city and regional associations of community economic development associations, comprised of a network of 2,000 community development corporations, reports that ten states to date have passed legislation seeking to stem the tide of house foreclosures.
These states are: Massachusetts, Indiana, Rhode Island, Arkansas, Connecticut, Minnesota, North Carolina, South Carolina, Texas and Illinois. Legislation is also currently pending in three other states: New Jersey, New York, and Michigan.
The strongest of the bills passed so far is the Massachusetts legislation. Provisions include:
* Creation of the country’s first statewide Community Reinvestment Act whose reporting requirements apply to mortgage companies;
* Funding of $3 million for the Division of Banks to monitor and oversee lenders;
* A licensing requirement for all loan originators; and
* Mandatory, in-person counseling for first-time home loan borrowers before such borrowers may enter into loan agreements that include sub-prime, adjustable loan rates.