Times Union (03/04/08); Wechsler, Alan
Mortgage lenders would have to provide borrowers with 60 days' notice and take part in a mandatory settlement conference before taking legal action against a borrower who has fallen behind on a loan, according to a bill that New York Gov. Eliot Spitzer (D) plans to introduce on March 4. Spitzer says he hopes the measure will help keep more borrowers from losing their homes to foreclosure. Rescue scams are also a focus of the bill, which restricts the taking of power of attorney from a homeowner except in a few specific situations, prohibits consultants from performing services without a written contract and requires services to be performed before any payment is made. The bill also defines mortgage fraud as a criminal act and establishes a standard of behavior for mortgage brokers to act with the borrower's best interest in mind.
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