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Patrick Tweaks Bank Rules To Prevent Foreclosures

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May 30, 2008 1:38 pm US/Eastern

Patrick Tweaks Bank Rules To Prevent Foreclosures

BOSTON (AP) ― Gov. Deval Patrick is modifying an index used in reapproving the licenses of mortgage lenders in Massachusetts to take into account how well they work with borrowers facing foreclosure.

The regulation adds to a law signed last November that sought a 90-day cooling off period before any foreclosure could take place.

Lenders are ranked on a five-point scale based on how well they comply with the Community Reinvestment Act. Failing to renegotiate mortgages will affect that rating, though Patrick and state banking officials were not specific in saying by how much.

The governor said Friday that even more customers face possible foreclosures as loan rates increase for adjustable rate mortgage holders. He says "more can be and must be done to help those homeowners who are most at risk of losing their homes."

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