BOSTON (AP) -- The Massachusetts Division of Banks has finalized new regulations aimed at blocking national and state lenders from foreclosing on a property if it costs less to modify the existing mortgage.
Undersecretary of Consumer Affairs Barbara Anthony said the regulations are the result of a law signed by Gov. Deval Patrick last year and are an added tool for homeowners.
She said the absence of the requirement was a contributing factor to the state's foreclosure crisis.
Commissioner of Banks David Cotney called the change a "win-win for lenders and consumers" because the cost of modifying loans is often less expensive than foreclosing.
The law signed by Patrick requires mortgage lenders to offer modifications to some loans that are deemed as "risky." It also bans lenders from pursuing foreclosures without proper documentation.
- Deval Patrick