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The Official Website of the Office of Consumer Affairs & Business Regulation (OCABR)
Mass.Gov
Home > Consumer > Housing Information > Foreclosure Resources > Information about Foreclosure Laws &
Regulations >
Protecting Tenants: One provision of Chapter 206 amends the tenancy-at-will statute to state that a tenancy-at-will
in a dwelling unit is not terminated by a foreclosure sale. A second provision provides that a tenancy under a lease of
a dwelling unit is converted to a tenancy-at-will after a foreclosure sale. Chapter 206 also establishes that the lease
for a tenant whose rental payment is subsidized under state or federal law shall not be affected by a foreclosure sale.
Foreclosure Database: Chapter 206 requires the Division of Banks to maintain a foreclosure database relative to
foreclosure activity by mortgage lenders, mortgage holders and mortgage servicers as well as mortgage brokers and
loan originators who placed such mortgage loans in the Commonwealth.
Pilot Program for First-Time Home Buyers and Foreclosure Prevention: The Division of Banks and other
agencies are required to develop a pilot program to identify best practices for financial institutions to provide first-
time homebuyer loans, to provide for foreclosure prevention for at-risk homeowners, and to assist approved
counseling programs with in-person counseling. The Act provided $2 million in grants for these programs.
Licensing of Loan Originators: Chapter 206 establishes a new chapter, Chapter 255F, in the General Laws, which
creates a complete statutory framework for the licensing, examination and supervision of mortgage loan originators
in the Commonwealth.
Community Reinvestment Act for Mortgage Lenders: The Act establishes a Community Reinvestment Act
(“CRA”) requirement for licensed mortgage lenders who make 50 or more home mortgage loans in the previous
calendar year. This provision will lead to more responsible lending.
Switching from an Adjustable Rate to a Fixed Rate Mortgage: The new law allows for an adjustable rate
mortgage loan to be changed to a fixed rate mortgage loan for a charge of up to 1% of the mortgage amount.
Increased Penalties for Violations by Mortgage Lenders and Mortgage Brokers: One provision of Chapter 206
increases the penalties for violations of General Laws chapter 255E, the mortgage broker and lender statute.
Chapter 206 can be reviewed for other changes and effective dates.
http://www.mass.gov/?pageID=ocaterminal&L=5&L0=Home&L1=Consumer&L2=Housin... 4/7/2011