Massachusetts may criminalize mortgage fraud

Massachusetts Gov. Deval Patrick is proposing legislation that would criminalize mortgage fraud, prohibit abusive foreclosure rescue schemes and require mandatory preforeclosure filing notices to troubled borrowers.

The legislation is part of a broader plan to address a rise in foreclosures, which the governor said will also include increased consumer assistance and education efforts and tougher licensing requirements for mortgage lenders and brokers.

Patrick said a "comprehensive approach" is required to help homeowners facing foreclosures.

The governor's plan would implement many of the recommendations in an April 11 report by two working groups. The groups, formed in the wake of a November summit meeting led by Massachusetts Commissioner of Banks Steven Antonakes, included participants from government agencies, nonprofit organizations and the mortgage lending industry.

All rights reserved. This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News. Use of this content without permission is a violation of federal copyright law.