Posted on Monday, August 23, 2010
New regulations go into effect in NY October 1, implementing the 2008 Mortgage Lending Reform Law consumer protections for subprime and high-cost home loans.
"Servicers handling New York-based mortgages must abide by these new regulations, which include a duty to avoid preventable foreclosures by pursuing loss mitigation efforts. In addition, if a homeowner is being considered for, or is currently in, a trial or permanent modification, servicers are expected to avoid foreclosure actions. Servicers are also required to have a sufficient staff on hand, written procedures for consumer inquiries and complaints, and methods for ensuring that homeowners do not have to submit multiple copies of required documents." DSNews