New state subprime laws in effect

Many provisions in the state’s new subprime lending reform law took effect on Labor Day. In lenders’ letters notifying nonsubprime borrowers that foreclosure proceedings will begin, they have to advise homeowners to seek legal counsel, contact nonprofit and government agencies for help and warn against foreclosure prevention scams. Subprime borrowers must get pre-foreclosure notices at least three months before the lenders begin to take action. The notices must include at least five nonprofit groups approved by the federal Department of Housing and Urban Development in the borrower’s region that offer housing counseling.

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