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Massachusetts Division Of Banks Issues New Expectations for Lenders

Posted By USFN, Monday, March 30, 2020
Updated: Thursday, April 9, 2020

by Joseph A. Camillo, Jr., Esq.                         
Brock and Scott, PLLC
USFN Member (AL, CT, FL, GA, MA, MD, ME, MI, NC, NH, OH, RI, SC, TN, VA, VT)

On March 25, 2020, the Division of Banks issued a message to all financial institutions outlining its expectations of lenders/servicers/credit unions to alleviate the adverse impact of COVID-19 on those mortgage borrowers who demonstrate that they are not able to make timely payments due to financial hardship resulting from the effects of COVID-19. The Division fully expects that institutions will implement all reasonable and necessary change to provide relief to those adversely impacted borrowers during this state of emergency, and continuing thereafter, as necessary. 

These actions include, but are not limited to: 


  • Postponing foreclosures for 60 days; 
  • Forbearing mortgage payments for 60 or more days from their due dates; 
  • Waiving late payment fees and any online payment fees for a period of 60 days; 
  • Refraining from reporting late payments to credit rating agencies for 60 days; 
  • Offering borrowers an additional 60-day grace period to complete trial loan modifications, and ensuring that late payments during the COVID-19 pandemic do not affect their ability to obtain permanent loan modifications; 
  • Ensuring that borrowers do not experience a disruption of service if the mortgage servicer closes its office, including making available other avenues for borrowers to continue to manage their accounts and to make inquiries; and 
  • Proactively reaching out to borrowers to explain the above-listed assistance being offered. 


The Division emphasizes that reasonable and prudent efforts by institutions during this outbreak to assist these borrowers given these unusual and extreme circumstances are consistent with safe and sound banking practices as well as in the public interest, and will not be subject to examiner criticism.

A link to the full copy of the message is


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