Bill
S 765
Establishes a statewide Foreclosure Prevention Program to mandatorily hold supervised conferences between creditors and eligible homeowners to explore viable loss‑mitigation option
Status (as of provided record)
- Bill number: S 765 (filed 1/16/2025; introduced 2/27/2025)
- Current procedural note: SUBSTITUTED BY A1468 (companion/replace bill)
- Referred to committees (Financial Services; Homeland Security & Governmental Affairs); hearing scheduled 04/15/2025
- Sponsors and related measures listed in the record; see bill file for final sponsor list
Purpose
- Establishes a statewide Massachusetts Foreclosure Prevention Program to promote supervised conferences (mediation-style sessions) between mortgage creditors/servicers and eligible homeowners to identify sustainable, commercially reasonable loss‑mitigation alternatives and avoid unnecessary foreclosures.
Key definitions and scope
- Covered loans: Mortgages and similar liens on owner‑occupied primary residences (includes condos, co‑ops, reverse mortgages, and properties with up to four rental units where the owner lives on the property). Excludes judgment liens, tax liens, municipal service liens, and certain governmental assessment liens.
- Creditor: Any person or entity holding or servicing the mortgage (originator, holder, investor, servicer, nominee, etc.). Servicers such as Fannie Mae and Freddie Mac are explicitly included.
- Eligible borrowers: Mortgagors (or successors) who (a) have been served a statutory “notice of right to cure” and elect the program; (b) are current but at imminent risk and elect to participate; (c) are referred by a judge; or (d) are in bankruptcy if the automatic stay has been lifted for participation.
- Creditor’s representative: Person with authority to negotiate and approve loan modifications who may appear at conferences; may not be the creditor’s attorney.
Program structure and procedure (high‑level)
- Administrator: The Attorney General designates a government or non‑profit organization to run the program, set standards, and train conference monitors.
- Conference monitors: Trained neutral facilitators (retired judges, legal/real‑estate/accounting professionals, experienced housing counselors) who run conferences and are immune from civil liability except for gross negligence.
- Notice and timing: Creditors serving a notice of right to cure must concurrently send that notice to the Program Administrator. Within 5 business days of receiving such notice (or a borrower request), the Administrator must mail the borrower a notice offering participation in a supervised foreclosure prevention conference.
- Conference goals: Good‑faith negotiation and systematic consideration of all loss‑mitigation options. If the creditor makes a good‑faith effort or the borrower declines participation despite reasonable notice, the Administrator may issue a “certificate of compliance.”
Key impacts and likely effects
- For homeowners: Creates an avenue to pursue loan modifications, forbearance, repayment plans, or other alternatives before a foreclosure sale; includes protections for borrowers in bankruptcy (with stay relief).
- For creditors/servicers: Requires participation in supervised conferences, provision of a qualified representative with modification authority, and good‑faith loss‑mitigation efforts. May require operational changes (timely document submission, staff with decision authority).
- For courts and communities: Aims to reduce foreclosures through facilitated negotiation; may delay some foreclosure timelines while increasing chances of resolution without sale.
- Administrative/operational: Establishes roles for an AG‑designated administrator and trained monitors, with standards and immunity provisions to encourage participation.
Notes and caveats
- The provided text was truncated; the summary covers the principal provisions visible in Section 35D as filed. Exact timelines, procedural steps inside the conference (e.g., document exchange deadlines, hearing structure, appeals/record rules) may be specified in the remainder of the bill or companion bill A1468.
- Because S 765 was marked “SUBSTITUTED BY A1468,” future action and final language may be reflected in A1468 rather than this Senate filing.
Compiled from official sources — confirm details with the bill’s official record.
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