The state Division of Banks has scheduled a public information hearing Wednesday morning to discuss rules that require lenders and mortgage loan servicers to avoid foreclosure.
The regulations are part of legislation signed by Gov. Deval Patrick early this month.
It requires lenders to send a notice to borrowers of their right to pursue a loan modification for certain mortgage loans. The law also requires lenders to conduct an analysis to determine the net present value of a loan modification for these types of loans.
Lenders cannot foreclose if modifying the mortgage will cost the lender less than the cost of foreclosure. In addition to requiring lenders to take reasonable steps to avoid foreclosure, lenders must prove loan ownership prior to taking foreclosure action.
The hearing is scheduled for 10 a.m. Wednesday at 1000 Washington St., 1st Floor, Boston.
Written comments may be submitted to the division until the end of business Friday. The division’s offices are also at 1000 Washington, on the 10th floor.
