- Massachusetts Division of Banks Issues Guidance on New Foreclosure Law
The Massachusetts Division of Banks on August 3 released guidance on compliance with the new Massachusetts foreclosure prevention statute, Chapter 194 of the Acts of 2012. The guidance clarifies the Division’s expectations for the timing of the delivery of notices required by the statute and certain documentation that examiners will expect to see in loan files.
Nutter Notes: The Division of Banks is also preparing to issue regulations under the statute that would require lenders and servicers to take reasonable steps to avoid foreclosure for certain mortgage loans. A public informational hearing on the new regulations has been scheduled for August 29 at 10:00 a.m. at the Division’s offices at 1000 Washington St.
- CFPB Releases New Combined TILA and RESPA Disclosure Forms The CFPB has published a proposal to combine the initial and closing disclosure forms that consumers receive in connection with a residential mortgage loan under the Truth in Lending Act and the Real Estate Settlement Procedures Act, as required by the Dodd-Frank Act. The proposal includes a detailed explanation of how the forms should be filled out and used.
Nutter Notes: The first form, the Loan Estimate, would replace the Good Faith Estimate and the early Truth in Lending disclosure statement and would be provided to consumers within three business days after they submit a loan application. The second form, the Closing Disclosure, would replace the HUD-1 and the final Truth in Lending disclosure statement and would be provided to consumers three business days before they close the loan.