SENATE, NO.

2407,PRINTEDASAMENDED
[Senate,April 29,2010 TextoftheSenateBilltostabilizeneighborhoods,beingthetextof (Senate, No. 2394,printedasamended.]

The Commonwealth of Massachusetts

__________________

INTHEYEAROFTWOTHOUSANDANDTEN __________________

ANACTTO STABILIZENEIGHBORHOODS.
Whereas, Thedeferredoperationofthisactwouldtendtodefeatitspurpose,whichistoprotectforthwiththe citizensand neighborhoodsofthecommonwealth,thereforeitisherebydeclaredtobeanemergencylaw, necessaryfortheimmediatepreservationofthepublicconvenience.
BeitenactedbytheSenateandHouseofRepresentativesinGeneralCourtassembled, Andby theauthorityofthesame,asfollows:

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SECTION1.Thesecondparagraphofsubclause(e)ofClauseThirdofsection5of chapter59oftheGeneralLaws,asappearinginthe2008OfficialEdition,isherebyamendedby addingthefollowingsentence:Inanycityortownthatacceptsthisparagraph,anyrealestate ownedby,orheldintrustfor,acharitableorganizationforthepurposeofcreatingcommunity housing,asdefinedinsection2ofchapter44B,andthatwaspurchasedfromanentitythat acquiredthepropertypursuanttosection14ofchapter244shallbeexemptuntilsuchrealestate isleased,rentedorotherwisedisposedof,butnotformorethan7yearsaftersuchpurchase.

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SECTION2. Chapter167EoftheGeneralLawsisherebyamendedbyinsertingafter section7thefollowingsection: Section7A.(a)Asusedinthissectionthefollowingwordsshall,unlessthecontext clearlyrequiresotherwise,havethefollowingmeanings: Mortgagor,anapplicantforareversemortgagewho:(1)hasagrossincomeofless than50percentoftheareamedianincome,asperiodicallydeterminedbytheUnitedStates DepartmentofHousingandUrbanDevelopment and(2)possessesassets,excludingaprimary residence,valuedatlessthan$120,000. ReverseMortgage,anonrecourseconsumercreditobligationinwhich:(1)amortgage, deedoftrust,orequivalentconsensualsecurityinterestsecuring1ormoreadvancesiscreatedin theconsumersprincipaldwellinglocatedinthecommonwealthand(2)anyprincipal,interest orsharedappreciationorequityisdueandpayable,otherthanin thecaseofdefault,onlyafter: (i)theconsumerdies(ii)thedwellingistransferredor(iii)theconsumerceasestooccupythe dwellingasaprincipaldwelling. (b)Nomortgageeshallmakeareversemortgageloan toamortgagor unless:(i)the mortgagoraffirmativelyoptsinwritingforthereversemortgageand(ii)atorbeforetheclosing ofanyreversemortgageloanthemortgageehasreceivedwrittencertificationfromacounselor withathirdpartyorganizationthatthemortgagorhasreceivedcounselinginperson relativeto theappropriatenessoftheloantransactionfromthethirdpartyorganizationandhascompleted anapprovedcounselingprogramofferedbythethirdpartyorganizationprovided,however,that thethirdpartyorganizationshallhavebeenapprovedbytheexecutiveofficeofelderaffairsfor purposesofsuchcounseling.Amortgageesfailuretoreceive(i)awrittenstatementfromthe

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mortgagoraffirmativelyoptingforthereversemortgage,or(ii)certificationfromacounselor approvedbytheexecutiveofficeofelderaffairsshallrenderthetermsofthereversemortgage unenforceable.Thecommissionershalladoptregulationstoadministerandimplementthis section,andtofurtherdefinethetermsusedinthissection. SECTION3.Chapter171oftheGeneralLawsisherebyamendedbyinsertingafter section65Cthefollowingsection: Section65C.(a)Asusedinthissectionthefollowingwordsshall,unlessthecontext clearlyrequiresotherwise,havethefollowingmeanings: Mortgagor,anapplicantforareversemortgagewho:(1)hasagrossincomeofless than50percentoftheareamedianincome,asperiodicallydeterminedbytheUnitedStates DepartmentofHousingandUrbanDevelopment and(2)possessesassets,excludingaprimary residence,valuedatlessthan$120,000. ReverseMortgage,anonrecourseconsumercreditobligationinwhich:(1)amortgage, deedoftrustorequivalentconsensualsecurityinterestsecuring1ormoreadvancesiscreatedin theconsumersprincipaldwellinglocatedinthecommonwealthand(2)anyprincipal,interest orsharedappreciationorequityisdueandpayable,otherthaninthecaseofdefault,onlyafter: (i)theconsumerdies(ii)thedwellingistransferredor(iii)theconsumerceasestooccupythe dwellingasaprincipaldwelling. (b)Nomortgageeshallmakeareversemortgageloan toamortgagor unless:(i)the mortgagoraffirmativelyoptsinwritingforthereversemortgageand(ii)atorbeforetheclosing ofanyreversemortgageloanthemortgageehasreceivedwrittencertificationfromacounselor withathirdpartyorganizationthatthemortgagorhasreceivedcounselinginperson relativeto

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theappropriatenessoftheloantransactionfromthethirdpartyorganizationandhascompleted anapprovedcounselingprogramofferedbythethirdpartyorganizationprovided,however,that thethirdpartyorganizationshallhavebeenapprovedbytheexecutiveofficeofelderaffairsfor purposesofsuchcounseling.Amortgageesfailuretoreceive(i)awrittenstatementfromthe mortgagoraffirmativelyoptingforthereversemortgage,or(ii)certificationfromacounselor approvedbytheexecutiveofficeofelderaffairsshallrenderthetermsofthereversemortgage unenforceable.Thecommissionershalladoptregulationstoadministerandimplementthis section,andtofurtherdefinethetermsusedinthissection. SECTION4.Chapter183 oftheGeneralLawsisherebyamendedbystrikingoutsection 67,asappearingin the2008OfficialEdition,andinsertinginplacethereofthefollowing section: Section67.Nomortgageeshallmakeareversemortgageloanonresidentialproperty exceptinaccordancewithsections7and7Aofchapter167E.Forthepurposesofthissection, thetermresidentialpropertyshallmeana1to4familydwellingownedandoccupiedinwhole orinpartbythemortgagorandlocatedinthecommonwealth. SECTION5. Section13Aofchapter186oftheGeneralLaws,asappearinginthe2008 OfficialEdition,isherebyamendedbyinsertingafterthewordlaw,inline6,thefollowing words: andtheforeclosingentityshallassumetheleaseandrentalsubsidycontractwiththe rentalsubsidyadministrator. SECTION6. TheGeneralLawsarehereby amendedbyinsertingafterchapter186,the followingchapter: CHAPTER186A.

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TENANTPROTECTIONSINFORECLOSEDPROPERTIES. Section1. Asusedinthischapter,thefollowingwordsshall,unlessthecontextclearly requiresotherwise,havethefollowingmeanings: Bonafideleaseorbonafidetenancy,aleaseortenancyshallnotbeconsideredbona fideunless:themortgagor,orthechild,spouseorparentofthemortgagorunderthecontract,is notthetenant(2)theleaseortenancywastheresultofanarmslengthtransactionand(3)the leaseortenancyrequiresthereceiptofrentthatisnotsubstantiallylessthanfairmarketrentfor theproperty. 'Entity',abusinessorganization,oranyotherkindoforganizationincluding,without limitation,acorporation,partnership,trust,limitedliabilitycorporation,limitedliability partnership,jointventure,soleproprietorshiporanyothercategoryoforganizationandany employee,agent,servantorotherrepresentativeofsuchentity. 'Eviction',anaction,withoutlimitation,byaforeclosingownerofahousing accommodationwhichisintendedtoactuallyorconstructivelyevictatenantorotherwise compelatenanttovacatesuchhousingaccommodation. Foreclosingowner',anentitythatholdstitleinanycapacity,directlyorindirectly, withoutlimitation,whetherinitsownname,astrusteeorasbeneficiary,toahousing accommodationthathasbeenforecloseduponandeither:(1)heldorownedamortgageorother securityinterestinthehousingaccommodationatanypointpriortotheforeclosureofthe housingaccommodationoristhesubsidiary,parent,trustee,oragentthereofor(2)isan institutionalmortgageethatacquiresorholdstitletothehousingaccommodationwithin3years

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ofthefilingofaforeclosuredeedonthehousingaccommodationor(3)istheFederalNational MortgageAssociationortheFederal HomeLoanMortgageCorporation. Foreclosure,alegalproceedingtoterminateamortgagor'sinterestinproperty, institutedbythemortgagee,andregulatedunderchapter244. 'Housingaccommodation',anybuildingorstructure,orpartthereoforlandappurtenant thereto,andanyotherrealorpersonalpropertyused,rentedorofferedforrentforlivingor dwellingpurposes,togetherwithallservicesconnectedwiththeuseoroccupancyofsuch property. 'Institutionalmortgagee',anyentity,oranyentitywhichisthesubsidiary,parent,trustee oragentthereoforotherwiserelatedtoanysuchentity,thatholdsorownsmortgagesorother securityinterestsin3ormorehousingaccommodationsorthatactsasamortgageservicerof3 ormoremortgages ofhousingaccommodations. 'Justcause,any1ofthefollowing:(a)thetenanthasfailedtopaytherentineffectprior totheforeclosureorfailedtopayuseandoccupancycharges,aslongastheforeclosingowner notifiedthetenantinwritingof theamountofrentortheamountofuseandoccupancythatwas tobepaidandtowhomitwastobepaid(b)thetenanthasviolatedanobligationorcovenantof thetenancyoroccupancy,otherthantheobligationtosurrenderpossessionuponpropernotice, andhasfailedtocuresuchviolationwithin60daysafterhavingreceivedwrittennoticethereof fromtheforeclosingowner(c)thetenantiscommittinganuisanceintheunit,ispermittinga nuisancetoexistintheunit,iscausingsubstantialdamagetotheunitoriscreatingasubstantial interferencewiththequietenjoymentofotheroccupants(d)thetenantisconvictedofusingor permittingtheunittobeusedforanyillegalpurpose(e)thetenantwhohadawrittenbonafide

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leaseorotherrentalagreementwhichterminated,onoraftertheeffectivedateofthischapter, hasrefused,afterwrittenrequestordemandbytheforeclosingowner,toexecuteawritten extensionorrenewalthereofforafurthertermoflikedurationandinsuchtermsthatarenot inconsistentwiththischapter(f)thetenanthasrefusedtheforeclosingownerreasonableaccess totheunitforthepurposeofmakingnecessaryrepairsorimprovementrequiredbythelawsof theUnitedStates,thecommonwealthoranysubdivisionthereof,orforthepurposeofinspection aspermittedorrequiredbyagreementorbylaworforthepurposeofshowingtheunittoa prospectivepurchaserormortgageeprovidedthatnoneoftheprecedingeventsshallbedeemed justcauseunlesstheforeclosingownerhasdeliveredtoeachtenantatthetimeofthedeliveryof thewrittennoticespecifiedintheparagraphbelow,awrittendisclosureofthetenantsrighttoa courthearingpriortoeviction. Theactionssetsforthinclauses(a)and(b)shallnotbedeemedtobejustcauseunless theforeclosingowner,within30daysoftheforeclosure,postedinaprominentlocationinthe buildinginwhichtherentalhousingunitislocatedawrittennoticestatingthenames,addresses, telephonenumbersandtelephonecontactinformationoftheforeclosingowner,thebuilding managerorotherrepresentativeoftheforeclosingownerresponsibleforthemanagementofsuch buildingandstatingtheaddresstowhichrentanduseandoccupancychargesshallbesent provided,however,thattheforeclosingownerhasdeliveredsuchwrittennoticetoeachtenantof saidhousingaccommodation Nothinginthischaptershalllimittherightsofathirdpartyownertoevictatenantatthe expirationofanexistinglease.

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Mortgagee',anentitytowhompropertyismortgaged,themortgagecreditororlender including,butnotlimitedto,mortgageservicers,lendersinamortgageagreementandanyagent, servantoremployeeofthemortgageeoranysuccessorininterestorassigneeofthemortgagees rights,interestsorobligationsunderthemortgageagreement. 'Mortgageservicer',anentitywhichadministersoratanypointadministeredthe mortgageprovided,howeverthatsuchadministrationshallinclude,butnotbelimitedto, calculatingprincipalandinterest,collectingpaymentsfromthemortgagor,actingasescrow agentorforeclosingintheeventofadefault. 'Tenantanypersonorgroupofpersonswhoatthetimeofforeclosureisentitledto occupy ahousingaccommodationpursuanttoabonafideleaseortenancyoratenancyatwill. Anypersonwhomovesintothehousingaccommodationownedbytheforeclosingowner, subsequenttotheforeclosuresale,withouttheexpresswrittenpermissionoftheownershallnot beconsideredatenantunderthischapter. 'Unit'or'residentialunit',theroomorgroupofroomswithinahousingaccommodation whichisusedorintendedforuseasaresidenceby1household. Section2.Notwithstandinganyotherspecialorgenerallawtothecontrary,aforeclosing ownershallnotevictatenantexceptforjustcauseorunlessabindingpurchaseandsale agreementhasbeenexecutedforabonafidethirdpartytopurchasesaidhousingaccommodation fromaforeclosingowner. Section3.Ifaforeclosingownerdisagreeswiththeamountofrentoruseandoccupancy ratesthatatenantatwillorlesseepaystotheforeclosingowner,theforeclosingownermay bringaclaimindistrictorsuperiorcourtorthehousingcourt toclaimthattherentis

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unreasonableandsetanewuseandoccupancyrate.Abonafideleasebetweentheforeclosed uponownerandthelesseeorproofofrentalpaymenttotheforecloseduponownershallbe presumedreasonable. Section4.Aforeclosingownerthatevictsatenantinviolationofthischapterorany ordinanceorbylawadoptedpursuanttothischapter,shallbepunishedbyafineofnotlessthan $5,000.Eachsuchillegalevictionshallconstituteaseparateoffense. Thedistrictandsuperiorcourtsandthehousingcourtshallhavejurisdictionoveran actionarisingfromaviolationofthischapterorofanyordinanceorbylawadoptedpursuantto thischapter,andshallhavejurisdictioninequitytorestrainanysuchviolation.Itshallbea defensetoanevictionproceedingthattheforeclosingownerattemptedtoevictatenantin violationofthischapteroranyordinanceorbylawadoptedpursuanttothischapter. SECTION7. Chapter244oftheGeneralLaws,asappearinginthe2008Official Edition,isherebyamendedbystrikingoutsection35Aandinsertinginplacethereofthe followingsection: Section35A.(a).Asusedinthissection,thefollowingwordsshall,unlessthecontext clearlyrequiresotherwise,havethefollowingmeanings: Borrower,amortgagorofamortgageloan. Borrowersrepresentative,anemployeeorcontractorofanonprofitorganization certifiedby HousingandUrbanDevelopment,anemployeeorcontractorofaforeclosure educationcenterpursuanttosection16ofchapter206oftheactsof2007oranemployeeor contractorofacounselingagencyreceivingaCollaborativeSealofApprovalfromthe

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MassachusettsHomeownershipCollaborativeadministeredbytheCitizensHousingand PlanningAssociation. Creditor,anypersonorentitythatholdsorcontrols,partially,wholly,indirectly, directly,orinanomineecapacity,amortgageloansecuringaresidentialproperty,including, withoutlimitation,anoriginator,holder,investor,assignee,successor,trust,trustee,nominee holder,MortgageElectronicRegistrationSystem,ormortgageservicer. Creditorshallalso includeanyservant,employeeoragentofacreditor. "Creditorsrepresentative,apersonwhohastheauthoritytonegotiatethetermsofand modifyamortgageloan. Modifiedmortgageloan,amortgagemodifiedfromitsoriginaltermsincluding,butnot limitedto, aloanmodifiedpursuantto1ofthefollowing:(i)theHomeAffordableModification Program(ii)theFederalDepositInsuranceCorporationsLoanModificationProgram(iii)any modificationprogram thatalenderuseswhichisbasedonacceptedprinciplesandthesafetyand soundnessoftheinstitutionandrecognizedbytheDivisionofBanksoranyotherinstrumentality ofthecommonwealth(iv)theFederalHousingAgency or (v)asimilarfederalrefinanceplan. Mortgageloan,aloantoanaturalpersonmadeprimarilyforpersonal,familyor householdpurposessecuredwhollyorpartiallybyamortgageonresidentialproperty. Netpresentvalue, thepresentnetvalueofaresidentialpropertybasedonacalculation using1ofthefollowing:(i)thefederalHomeAffordableModificationProgramBaseNet PresentValueModel,(ii)theFederalDepositInsuranceCorporationsLoanModification Program or (iii)fortheMassachusettsHousingFinanceAgencysloanprogramusedsolelyby theagencytocomparetheexpectedeconomicoutcomeofaloanwithorwithoutaloan modification.

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Residentialproperty'',realpropertylocatedinthecommonwealthhavingthereona dwellinghousewithaccommodationsfor4orlessseparatehouseholdsandoccupied,ortobe occupied,inwholeorinpartbytheobligor onthemortgagedebtprovided,however,that residentialpropertyshallbelimitedtotheprincipalresidenceofapersonprovided,further,that residentialpropertyshallnotincludeaninvestmentpropertyorresidenceotherthanaprimary residence. (b)Anymortgagorofresidentialpropertyshallhavea150dayrighttocureadefaultof arequiredpaymentasprovidedintheresidentialmortgageornotesecuredbytheresidential propertybyfullpaymentofallamountsthatareduewithoutaccelerationofthematurityofthe unpaidbalanceofthemortgageprovided,however,thatifacreditorcertifiesthat: (i)ithas engagedinagoodfaithefforttonegotiateandagreeuponacommerciallyreasonablealternative toforeclosureasdescribedinsubsection(c)(ii)itsgoodfaithefforthasinvolvedatleast1meeting,
eitherinpersonorbytelephone,betweenacreditorsrepresentativeandtheborrower,theborrowers attorneyorthe borrowersrepresentativeand(iii)aftersuchmeetingtheborrowerandthecreditor

werenotsuccessfulinresolvingtheirdispute,thenthecreditormaybeginforeclosure proceedingsafterarighttocureperiodlasting90days.Aborrowerwhofailstorespondwithin 60daystoanymailedcommunicationsofferingtonegotiateandagreeupon acommercially reasonablealternativetoforeclosuresentviacertifiedandfirstclassmailorsimilarservicebya

privatecarrier fromthelendershallbedeemedtohaveforfeitedtherighttoa150dayrightto

cureperiodandshallbesubjecttoarighttocureperiodlasting90days.Nothinginthissection shallprohibittheborrowerfromaffirmativelyselectinga150dayrighttocureperiodinsteadof meetingwith thecreditortonegotiateandagreeuponacommerciallyreasonablealternativeto foreclosure.Therighttocureadefaultofarequiredpaymentshallbegrantedonceduringany3 yearperiod,regardlessofmortgageholder.

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(c)Forpurposesofthissection,adeterminationthatacreditorhasmadeagoodfaith efforttonegotiateandagreeuponacommerciallyreasonablealternativetoforeclosureshall meanthatthecreditorhasconsidered:(i)anassessmentoftheborrowerscurrentcircumstances including,withoutlimitation,theborrowerscurrentincome,debtsandobligations(ii)thenet presentvalueofreceivingpaymentspursuanttoamodifiedmortgageloanascomparedtothe anticipatednetrecoveryfollowingforeclosureand(iii)theinterestsofthecreditorincluding, withoutlimitation,theinterestofinvestorsand,ifthecreditorhasreceivedfundsfromthe federalgovernmentorfromthecommonwealth,theinterestoftaxpayersprovided,however, thatnothinginthissubsectionshallbeconstruedasprohibitingacreditorfromconsideringother factorsprovided,further,thatthecreditormustprovidebyfirstclassandcertifiedmailorsimilar
servicebyaprivatecarrier toaborrowerdocumentationofgoodfaitheffort10dayspriorto

meeting,telephoneconversationorameetingpursuanttosubsection(b)provided,further,that
suchdocumentationshallinclude:(i)asummaryofthecreditorsnetpresentvalueanalysisand applicabledataand inputsoftheanalysis(ii)optionsofreliefofferedtotheborrower(iii)acertification thattheoptionsofrelieforany otherforeclosurealternative offeredcomplieswithcurrentfederallawor policyand(iv)documentationoffactorsconsideredbythecreditorotherthanthosespecifically enumeratedinthissubsection..

(d)A borrower whoreceivesaloanmodificationofferfromthecreditor resultingfrom thelendersgoodfaithefforttonegotiateandagreeuponacommerciallyreasonablealternative toforeclosureshall respondwithin30daysofreceiptoffirstclassorcertifiedmail. Aborrower shallbepresumedtohaverespondediftheborrowerprovides:(i)confirmationofafacsimile transmissiontothecreditor(ii)proofofdeliverythroughtheUnitedStatesPostalServiceor similarcarrieror (iii)recordoftelephonecalltothecreditorcapturedonatelephonebillorpin

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register.Aborrowerwhofailstorespondtothecreditorsofferwithin30daysofreceiptofa loanmodificationoffershallbedeemedtohaveforfeitedthe150dayrighttocureperiodand shallbesubjecttoarighttocureperiodlasting90days. (e)Nothinginthissubsectionshallpreventacreditorfromofferingoraccepting alternativestoforeclosure,suchasashortsaleordeedinlieuofforeclosure,iftheborrower requestssuchalternatives,rejectsaloanmodificationofferedpursuanttothissubsectionordoes notqualifyforaloanmodificationpursuanttothissubsection. (f)Priortotheconclusionoftherighttocureperiodthecreditorshall certifycompliancewith

thissectioninanaffidavit.Theaffidavitshallincludethetimeandplaceofthemeeting,parties participating,reliefofferedtotheborrower,andcertification thatasummaryofthecreditorsnetpresent valueanalysisandapplicableinputsoftheanalysiswasprovidedbythecreditortotheborrowerbyfirst classmailandcertifiedmailnotlessthan10dayspriortothemeetingasrequiredbysubsection(c)and certificationthatanymodificationoroptionofferedcomplieswithcurrentfederallaworpolicy. A

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creditorshallprovideacopyoftheaffidavittothehomeownerandfileacopyoftheaffidavit withthelandcourtinadvanceofinitiatinganyforeclosure.

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(g) The mortgagee, or anyone holding thereunder, shall not accelerate maturity of the unpaid balance of such mortgage obligation or otherwise enforce the mortgage because of a defaultconsistingofthemortgagor'sfailuretomakeanysuchpaymentinsubsection(b)byany methodauthorizedbythischapteroranyotherlawuntilatleast150daysafterthedateawritten noticeisgivenbythemortgageetothemortgagor.

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Saidnoticeshallbedeemedtobedeliveredtothemortgagor:(i)whendeliveredbyhand to the mortgagor or (ii) when sent by first class mail and certified mail or similar service by a

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privatecarrier tothemortgagoratthemortgagor'saddresslastknowntothemortgageeoranyone

holdingthereunder.

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(h)Thenoticerequiredinsubsection(f)shallinformthemortgagorofthefollowing:

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(1) the nature of the default claimed on such mortgage of residential real property and of the mortgagor's right to cure the default by paying the sum of moneyrequiredtocurethedefault

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(2) the date by which the mortgagor shall cure the default to avoid acceleration,aforeclosureorotheractiontoseizethehome,whichdateshallnot belessthan150daysafterserviceofthenoticeandthename,addressandlocalor toll free telephone number of a person to whom the payment or tender shall be made

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(3)that,ifthemortgagordoesnotcurethedefaultbythedatespecified,the mortgagee, or anyone holding thereunder, may take steps to terminate the mortgagor'sownershipinthepropertybyaforeclosureproceedingorotheraction toseizethehome

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(4) the name and address of the mortgagee, or anyone holding thereunder, and the telephone number of a representative of the mortgagee whom the mortgagormaycontactifthemortgagordisagreeswiththemortgagee'sassertion thatadefaulthasoccurredorthecorrectnessofthemortgagee'scalculationofthe amountrequiredtocurethedefault

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(5) the name of any current and former mortgage broker or mortgage loan originatorforsuchmortgageornotesecuringtheresidentialproperty

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(6) that the mortgagor may be eligible for assistance from the Homeownership PreservationFoundationorotherforeclosurecounselingagency,andthelocalortollfree telephonenumbersthemortgagormaycalltorequestthisassistance

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(7) that themortgagormaysellthepropertypriortotheforeclosuresaleand usetheproceedstopayoffthemortgage (8) that themortgagormayredeemthepropertybypayingthetotalamount due,priortotheforeclosuresale (9)thatthemortgagormaybeevictedfromthehomeafteraforeclosuresale (10) that themortgagormayrequestfromthemortgageeanegotiated agreementtorepaythemortgageontermsthataredifferentfromoralternativeto theoriginaltermsofthemortgageandmayrequestacopyofthemortgage,note, disclosurestatement,andpaymentrecordsand (11)adeclaration,appearingonthefirstpageofthenoticestating:Thisisan importantnoticeconcerningyourrighttoliveinyourhome.Haveittranslatedat once.Thedivisionofbanksshalladoptregulationsinaccordancewiththis sectionprovidedhowever,thatsuchregulationsshallprovidethatthe declarationshallbeprintedin:(i)the5mostcommonlyusednonEnglishprimary languagesinMassachusetts,accordingtothemostrecentdataavailablefrom the UnitedStatesCensusBureau(ii)the5mostcommonlyusednonEnglishprimary languagesinaparticularregionofthecommonwealthaccordingtocensusdata

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forthatregionor(iii)whicheverlanguagethecreditorhasregularlyusedinits communicationwiththeborrower.

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(i) To cure a default prior to acceleration under this section, a mortgagor shall not be required to pay any charge, fee or penalty attributable to the exercise of the right to cure a default.Themortgagorshallpaylatefeesasallowedpursuanttosection59ofchapter183and perdiem interesttocuresuchdefault.The mortgagorshall notbeliable foranyattorneys' fees relating to the mortgagor's default that are incurred by the mortgagee or anyone holding thereunder prior to or during the period set forth in the notice required by this section. The mortgagee,or anyone holding thereunder, may also provide for reinstatement of the note after the150daynoticetocurehasended.

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(j) A copy of the notice required by this section and an affidavit demonstrating compliancewiththissection shall be filed bythe mortgagee,oranyone holdingthereunder, in anyactionorproceedingtoforecloseonsuchresidentialrealproperty.

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(k)Acopyofthenoticerequiredbythissectionshallalsobefiledbythemortgagee,or anyoneholdingthereunder,withthecommissionerofthedivisionofbanks.Additionally,ifthe residential property securing the mortgage loan is sold at a foreclosure sale, the mortgagee,or anyoneholdingthereunder,shallnotifythecommissionerofthedivisionofbanks,inwriting,of thedateoftheforeclosuresaleandthepurchasepriceobtainedatthesale.

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Thecommissionerofbankingshallpromulgateamodelnoticewhichmeetstherequirementsof this section. Use of such a form notice, if it does not contain materially inaccurate information, shall constitutecompliancewiththissection.

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SECTION8. Chapter244oftheGeneralLawsisherebyamendedbystrikingout section35A,asappearinginsection7,andinsertinginplacethereofthefollowingsection: Section35A.(a)Anymortgagorofresidentialrealpropertylocatedinthecommonwealth consistingofadwellinghousewithaccommodationsfor4orlessseparatehouseholdsand occupiedinwholeorinpartbythemortgagor,shallhavea90dayrighttocureadefaultofa requiredpaymentasprovidedinsuchresidentialmortgageornotesecuredbysuchresidential realpropertybyfullpaymentofallamountsthatareduewithoutaccelerationofthematurityof theunpaidbalanceofsuchmortgage.Therighttocureadefaultofarequiredpaymentshallbe grantedonceduringany 5yearperiod,regardlessofthemortgageholder.

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(b) The mortgagee, or anyone holding thereunder, shall not accelerate maturity of the unpaid balance of such mortgage obligation or otherwise enforce the mortgage because of a defaultconsistingofthemortgagor'sfailuretomakeanysuchpaymentinsubsection(a)byany methodauthorizedbythischapteroranyotherlawuntilatleast90daysafterthedateawritten noticeisgivenbythemortgageetothemortgagor.

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Saidnoticeshallbedeemedtobedeliveredtothemortgagor:(i)whendeliveredbyhand to the mortgagor or (ii) when sent by first class mail and certified mail or similar service by a
privatecarrier tothemortgagoratthemortgagor'saddresslastknowntothemortgageeoranyone

holdingthereunder.

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(c)Thenoticerequiredinsubsection(b)shallinformthemortgagorofthefollowing:

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(1) the nature of the default claimed on such mortgage of residential real property and of the mortgagor's right to cure the default by paying the sum of moneyrequiredtocurethedefault

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(2) the date by which the mortgagor shall cure the default to avoid acceleration,aforeclosureorotheractiontoseizethehome,whichdateshallnot belessthan90daysafterserviceofthenoticeandthename,addressandlocalor toll free telephone number of a person to whom the payment or tender shall be made

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(3)that,ifthemortgagordoesnotcurethedefaultbythedatespecified,the mortgagee, or anyone holding thereunder, may take steps to terminate the mortgagor'sownershipinthepropertybyaforeclosureproceedingorotheraction toseizethehome

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(4) the name and address of the mortgagee, or anyone holding thereunder, and the telephone number of a representative of the mortgagee whom the mortgagormaycontactifthemortgagordisagreeswiththemortgagee'sassertion thatadefaulthasoccurredorthecorrectnessofthemortgagee'scalculationofthe amountrequiredtocurethedefault

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(5) the name of any current and former mortgage broker or mortgage loan originatorforsuchmortgageornotesecuringtheresidentialproperty

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(6)thatthemortgagormaybeeligibleforassistancefromtheMassachusetts Housing Finance Agency and the division of banks and the local or toll free telephonenumbersthemortgagormaycalltorequestthisassistance

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(7) that themortgagormaysellthepropertypriortotheforeclosuresaleand usetheproceedstopayoffthemortgage (8) that themortgagormayredeemthepropertybypayingthetotalamount due,priortotheforeclosuresale (9)thatthemortgagormaybeevictedfromthehomeafteraforeclosuresale (10) that themortgagormayrequestfromthemortgageeanegotiated agreementtorepaythemortgageontermsthataredifferentfromoralternativeto theoriginaltermsofthemortgageandmayrequestacopyofthemortgage,note, disclosurestatement,andpaymentrecordsand (11)adeclaration,appearingonthefirstpageofthenoticestating:Thisisan importantnoticeconcerningyourrighttoliveinyourhome.Haveittranslatedat once.Thedivisionofbanksshalladoptregulationsinaccordancewiththis sectionprovided,however,thatsuchregulationsshallprovidethatthedeclaration shallbeprintedin:(i)the5mostcommonlyusednonEnglishprimarylanguages inMassachusetts,accordingtothemostrecentdataavailablefromtheUnited StatesCensusBureau(ii)the5mostcommonlyusednonEnglishprimary languagesinaparticularregionofthecommonwealthaccordingtocensusdata forthatregionor(iii)whicheverlanguagethecreditorhasregularlyusedinits communicationwiththeborrower.

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(d) To cure a default prior to acceleration under this section, a mortgagor shall not be required to pay any charge, fee, or penalty attributable to the exercise of the right to cure a default.Themortgagorshallpaylatefeesasallowedpursuanttosection59ofchapter183and perdiem interesttocuresuchdefault.The mortgagorshall notbeliable foranyattorneys' fees relating to the mortgagor's default that are incurred by the mortgagee or anyone holding thereunder prior to or during the period set forth in the notice required by this section. The mortgagee,or anyone holding thereunder, may also provide for reinstatement of the note after the90daynoticetocurehasended.

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(e) A copy of the notice required by this section and an affidavit demonstrating compliancewiththissection shall be filed bythe mortgagee,oranyone holdingthereunder, in anyactionorproceedingtoforecloseonsuchresidentialrealproperty.

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(f)Acopyofthenoticerequiredbythissectionshallalsobefiledbythemortgagee,or anyoneholdingthereunder,withthecommissionerofthedivisionofbanks.Additionally,ifthe residential property securing the mortgage loan is sold at a foreclosure sale, the mortgagee,or anyoneholdingthereunder,shallnotifythecommissionerofthedivisionofbanks,inwriting,of thedateoftheforeclosuresaleandthepurchasepriceobtainedatthesale.

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Thecommissionerofbankingshallpromulgateamodelnoticewhichmeetstherequirementsof this section. Use of such a form notice, if it does not contain materially inaccurate information, shall constitutecompliancewiththissection.

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SECTION9. Section33ofchapter266oftheGeneralLaws,asappearinginthe2008 OfficialEdition,isherebyamendedbystrikingout,inlines5to10,inclusive,thewords(2) whoever,withintenttodefraud,byafalsestatementinwritingrespectingthefinancial

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condition,ormeansorabilitytopay,ofhimselforofanyotherperson,obtainscreditfromany bankortrustcompanyoranybankinginstitutionoranyretailsellerofgoodsorservices accustomedtogivecreditinanyformwhatsoevershallbeguiltyoflarcenyandinsertingin placethereofthefollowingwords: (2)whoever,withintenttodefraud,byafalsestatementin writingrespectingthefinancialcondition,ormeansorabilitytopay,ofhimselforofanyother person,obtainsforhimselforforanyotherpersoncreditfromanybankortrustcompanyorany bankinginstitutionoranymortgagelender,asdefinedinsection1ofchapter255E, oranyretail sellerofgoodsorservicesaccustomedtogivecreditinanyformwhatsoevershallbeguiltyof larceny. SECTION10.Saidchapter266isherebyfurtheramendedbystrikingoutsection34,as soappearing,andinsertinginplacethereofthefollowingsection: Section34.Whoever,withintenttodefraudandbyafalsepretence,inducesanotherto partwithpropertyofanykindorwithanyofthebenefitsdescribedinsections33and33Ashall beguiltyoflarceny. SECTION11. Saidchapter266isherebyfurtheramendedbyinsertingaftersection35 thefollowingsection: Section35A.(a)Asusedinthissection,thefollowingwordsshallhavethefollowing meanings,unlessthecontextclearly otherwiserequires: Funds,shallinclude,butnotbelimitedto,acommission,fee,yieldspreadpremiumor compensationinanyform.

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Materialomission,theomissionorconcealmentofamaterialfactnecessarytoprevent astatementfrombeingmisleading,inthelightofthecircumstancesunderwhichthestatementis made. Mortgagelendingprocess,theprocessthroughwhichapersonseeksorobtainsa residentialmortgageloanincluding,butnotlimitedto,solicitation,application,origination, negotiationofterms,thirdpartyproviderservices,underwriting,signingandclosing,and fundingoftheloanprovided,however,thatdocumentsinvolvedinthemortgagelending processshallinclude,butnotbelimitedto,uniformresidentialloanapplicationsorotherloan applications,appraisalreports, HUD1settlementstatements,supportingpersonaldocumentation forloanapplicationssuchasW2forms,verificationofincomeandemployment,bank statements,taxreturnsandpayrollstubsandanyrequireddisclosures. Patternofresidentialmortgagefraud,violationofsubsection(b)inconnectionwith3 ormoreresidentialproperties. Person,anaturalperson,corporation,company,limitedliabilitycompany,partnership, realestatetrust,associationoranyotherentity. Residentialmortgageloan,aloanoragreementtoextendcreditmadetoaperson, whichloanissecuredbyamortgage,securityinterest,deedtosecuredebt,deedoftrust,orother documentrepresentingasecurityinterestorlienuponanyinterestina1to4familyresidential propertylocatedinthecommonwealth,includingtherenewalorrefinancingofanysuchloan. (b)Whoeverintentionally:(1)makesorcausestobemadeanymaterialstatementthatis falseoranystatementthatcontainsamaterialomission,knowingthesametobefalseorto containamaterialomission,duringorinconnectionwiththemortgagelendingprocess,withthe

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intentthatsuchstatementberelieduponbyamortgagelender,borroweroranyotherpartytothe mortgagelendingprocess(2)uses,orfacilitatestheuseof,anymaterialstatementthatisfalseor anystatementthatcontainsamaterialomission,knowingthesametobefalseortocontaina materialomission,duringorinconnectionwiththemortgagelendingprocess,withtheintent thatsuchstatementberelieduponbyamortgagelender,borroweroranyotherpartytothe mortgagelendingprocess(3)receivesanyproceedsoranyotherfundsinconnectionwitha residentialmortgageclosing,knowingsuchproceedsorfundswereobtainedinviolationof clause(1)or(2)or(4)filesorcausestobefiledwitharegistrarofdeedsanydocumentthat containsamaterialstatementthatisfalseoramaterialomission,knowingsuchdocumentto containamaterialstatementthatisfalseoramaterialomission,shallbepunishedby imprisonmentinthestateprisonfornotmorethan5yearsorbyimprisonmentinthehouseof correctionfornotmorethan2yearsorbyafineofnotmorethan$10,000inthecaseofa naturalpersonornotmorethan$100,000inthecaseofanyotherperson,orbybothsuchfine andimprisonment. Anypersonwhoengagesinapatternofresidentialmortgagefraudshallbepunishedby imprisonmentinthestateprisonfornotmorethan15yearsorbyafineofnotmorethan $50,000,inthecaseofanaturalperson,ornotmorethan$500,000inthecaseofanyother person,orbybothsuchfineandimprisonment. (c)Ifadefendantisconvictedof aviolationofthissectionasaresultofconductoran omissionbyanemployeeoragentofthedefendantthecourtmayconsiderthefollowing mitigatingfactorswithrespecttosentencing:

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(1) that thedefendanthadinstitutedandmaintainedatthetimeofthe violation,andcontinuestohave,awrittenpolicyincluding: (i)aprohibitionagainstconductthatviolatesthissectionbyemployees andagentsofthedefendant (ii)penaltiesordisciplineforviolationofthepolicy (iii)aprocessforeducatingemployeesandagentsconcerningthepolicy andconsequencesofaviolation thereofand (iv)withrespecttoadefendantauthorizedtoconductcriminalhistory checksfortheemployeesoragentsposition,arequirementforacriminal historycheckbeforeemployinganemployeeorengaginganagentanda requirementthatthedefendantwillnotemployorengageanindividual whohasbeenconvictedofacrimeinvolvingfraud (2)a demonstration that thedefendantenforcesthepolicydescribedinclause (1)and (3)priortotheviolationofthissectionthedefendantprovidedacopyofthe policydescribedinclause(1),includingadescriptionoftheconsequencesfor violatingthepolicy,totheemployeeoragentwhocommittedtheviolation. SECTION11A.Chapter277oftheGeneralLawsisherebyamendedbyinsertingafter section62Bthefollowingsection: Section62C.Aviolationof section35Aofchapter266maybeprosecutedandpunished in:

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(1)thecountyinwhichtheresidentialpropertyforwhichamortgageloanis beingsoughtislocated (2)thecountyinwhichanyactwasperformedinfurtheranceoftheviolation (3)thecountyinwhichanypersonallegedtohaveviolatedthissectionhad controlorpossessionofanyproceedsof,orotherfundsreceivedasaresultofthe violation (4)thecountyinwhichaclosingonthemortgageloanoccurredor (5)thecountyinwhichadocumentcontainingadeliberatemisstatement, misrepresentationoromissionisfiledwitharegistrarofdeeds. SECTION12.Notwithstandinganygeneralorspeciallawtothecontrary,the commissionerofbanksshallestablisha2yearpilotprogramtoimplementastateMassachusetts abandonedpropertyregistry,hereinafterreferredtoasMAP.Suchregistryshallrequireall propertyowners,includinglenders,trusteesandservicescompanies,toproperlyregisterand maintainvacantorforeclosingpropertieslocatedinthecommonwealth.Lawenforcement entitiesincluding,butnotlimitedto, theattorneygeneralandmunicipalitiesshallhaveaccessto theMAP.Thecommissionerofbanksshallhaveenforcementauthorityofthepilotprogram including,butnotlimitedto, theauthoritytoimposecivilassessments. Saidcommissionershall adoptrulesandregulationsgoverningtheimplementationandadministrationoftheMAPpilot program. SECTION13. Thecommissionerofbanksshalladopttherulesandregulationsrequired undersection12notlaterthan120daysaftertheeffectivedateofthisact.

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SECTION14. Section4shalltakeeffect90daysaftertheeffectivedateofthisact. Sections2and3shalltakeeffect90daysaftertheeffectivedateofthisactprovided,however, thattheinpersoncounselingrequirementinsubsection(b)ofsection7Aofchapter167Eofthe GeneralLawsandinsubsection(b)ofsection65C1/2ofchapter171oftheGeneralLawsshall takeeffect18monthsaftertheeffectivedateofthisact. SECTION15.Section8shalltakeeffectonJanuary1,2016.

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