Since 2009 Barbara Anthony has been the head of
Massachusetts State Office of Consumer Affairs and Business Regulation. Reporter Jenifer McKim had talks with her regarding some salient points about the foreclosure crisis.
In 2010 there were 12,000
foreclosures in the state. The numbers had made the state concerned and steps were taken to hold workshops where many homeowners had face to face discussions with the lenders. Anthony said that in the majority of the cases the troubled homeowners had failed to contact their lenders; it was heartrending. How many were specifically successful in modifying loans Anthony could not say. A lenders advisory body has been set up. Conferences are held with them after six weeks regularly to find out how many loans had been modified and what could be done to improve the numbers.
Anthony was asked if her office had the power to make the lenders act. She said that most of the big players in the field are the national banks and mortgage firms. They have to act according to the state law that stipulates a waiting period of 150 days prior to starting off foreclosures. Information has to be filed with Division of Banks saying that they have followed the rules; if it is found that they have failed to do so the attorney general is then apprised of the facts.
The banks are concerned that all this would slow down the foreclosure process. In reply to this Anthony said that if they followed the law then things would move as per schedule and nothing would come in the way.
Regarding HAMP and the concern of many that it has failed to reach anywhere near the targeted number of modifications Anthony said that the mega banks were not prepared to handle the huge volume of loan modification applications. But the new rules laid down by the Treasury are beginning to show a positive impact.
Anthony when asked about the role of local banks said that she was “a big fan of community banks and credit unions”. However she added that this did not mean she never had transactions with the big ones. There are more products being offered by local banks as compared to the national ones. It makes one feel comfortable to know where the mortgage is lying. It makes sleeping easier.
