State finance czar proposes foreclosure overhaul

Top regulator wants to quicken and "streamline" the process

Benjamin Lawsky
Benjamin Lawsky

Benjamin Lawsky, the state’s superintendent of financial services, is calling for changes to the state’s home foreclosure process.

In a speech, Lawsky said that many people who would ordinarily keep their homes lose their properties due to delays in the foreclosure system, according to Capital New York. As a result, the finance czar continued, properties sit vacant for months or even years. Lawsky proposed to “streamline” the process for homes that have already been vacated.

Lawsky’s speech at a Mortgage Bankers Association conference followed a report by the Department of Financial Services that also recommended an overhaul of the entire system. The report proposes that homeowners can keep their houses during the foreclosure process.

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President of the Mortgage Bankers Association David Stevens said that shortening timelines was a good idea, according to the Wall Street Journal.

“Everybody is prepared to protect the consumer,” Stevens told the Journal, “but you don’t want to put unusual obstructions in place for homes that should be foreclosed upon.” [Capital NY PRO] and [WSJ]Claire Moses