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Can you summarize 209 CMR 56?
Division of Banks and Loan Agencies > Foreclosure prevention options
Short Summary
The document, 209 CMR 56.00, defines the Right to Cure notification process for lenders and mortgage servicers to notify borrowers of a mortgage default and disclose repayment options to prevent foreclosure. It also establishes standards and requirements for mortgage loan modifications to avoid unnecessary foreclosures. The document applies to borrowers, creditors, mortgagees, and mortgage servicers involved in mortgage loans secured by owner-occupied residential properties. It provides definitions for various terms related to foreclosure prevention options and specifies loan features that classify a loan as a certain mortgage loan. The document exempts loans financed by the Massachusetts Housing Finance Agency and loans originated through programs administered by the Massachusetts Housing Partnership Fund board. It outlines the ‘90-day Right to Cure Your Mortgage Default’ notice requirements, providing borrowers with 90 days to pay the past due amount and offering assistance from organizations like the Homeownership Preservation Foundation and MassHousing. The notice advises borrowers on ways to avoid foreclosure and includes contact information for the mortgagee. The document also includes a safe harbor provision for certain mortgage loans, where the creditor is exempt from issuing the Right to Cure notice if the borrower accepted a permanent loan modification or was notified in writing that they were not eligible for a modified mortgage. Additionally, the document grants borrowers the right to request a modified mortgage loan and provides a form for borrowers to choose their preferred option. It emphasizes the importance of returning the form within 30 days to maintain the right to cure the mortgage default. The notice provides contact information for the creditor and suggests contacting the Attorney General’s Office for assistance. The document concludes by mentioning the presence of additional important disclosures related to applicable laws and requirements.
Whom does it apply to?
Borrowers, creditors, mortgagees, and mortgage servicers involved in mortgage loans secured by owner-occupied residential properties
What does it govern?
Right to Cure notification process for lenders and mortgage servicers, disclosure of repayment options, mortgage loan modification process, foreclosure prevention options
What are exemptions?
Loans financed by the Massachusetts Housing Finance Agency and loans originated through programs administered by the Massachusetts Housing Partnership Fund board
What are the Penalties?
No specific penalties are mentioned in this document
Jurisdiction
Massachusetts