Massachusetts is proposing to add the level at which mortgage lenders modify subprime mortgages as a sixth criterion to the five-point scale used to determine licensing status. Gov. Deval Patrick has requested that the Division of Banks review all mortgage lenders licensed in the state with a special eye on how many loan modifications have been completed and how fast it took to accomplish them. If adopted, Massachusetts—which saw the number of foreclosure deeds surge 152% from a year ago--would become the only state to grade non-bank mortgage lenders on issues relating to risky loans.
Mass. Moves To Make Sure Mortgage Lenders Make The Grade