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Question: What will change for homeowners and lenders?
Answer: What we’re trying to do is to put in place a process which is really kind of the last step before foreclosure can proceed. And it gives the homeowner a chance to sit down face to face with their lender or servicer with a neutral third party to see if something can be worked out before actually going to foreclosure. The law builds on what we had done in 2008, when we changed the foreclosure process and added more time and more notice for borrowers.
Q: What steps does the law add?
A: When the lender … sends the notice of intent [to foreclose] to the borrower, they’ve got to include some additional things now under this new law. They must include a loss-mitigation application with instructions for how to complete it and where to send it. … They also have to include information about various loss-mitigation programs, including the federal Home Affordable Modification Program — the HAMP program — and also specific information about the lender’s loss-mitigation programs. … In addition, they’ve got to send information about the state programs — our HOPE program with the HOPE hot line number and the website.
Q: What comes next?
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