Supports Protections from Predatory Homeowner Lending
Specifically, this bill will:
- Set limits on the financing of points and fees.
- Prohibit prepayment of fees and penalties.
- Bar lenders from increasing the interest rate, if a borrower defaults.
- Forbid lenders from charging fees for modifying a loan’s terms.
- Ban mandatory arbitration for the settlement of disputes.
- Exclude lenders from disbursing funds directly to a home improvement contractor.
- Check a lender from encouraging the borrower to default on a pre-existing debt.
- Prevent the division of a loan to avoid these provisions.
- Protect borrowers facing foreclosure.
- Make a breach of these restrictions a violation of Chapter 93A, the Massachusetts Consumer Protection Act
Posted by Editor 