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After yesterday’s moratorium on foreclosures announced by newly elected governor Deval Patrick we got a response from the Massachusetts Mortgage Bankers Association and it was tepid and very honest. Instead of fighting back, it was more of a resigned sigh.

Because the mortgage lenders know that the action by Patrick was pure political grandstanding and will help very few people. The mortgage brokers in Massachusetts know the lay of the land with the foreclosures they have filed. It is going to cost them short term money to wait 60 days, but the borrowers that are in default are most likely going to remain there.

When the cameras leave and Deval Patrick wakes up and see’s that his grandstanding has done nothing positive, he will let the issue die. Unfortunately, the fear of more moronic actions will make the lenders add that 8th of a point to every mortgage they write in the state to cover the potential expense that may be incurred by the mortgage brokers if the Governor decides to flex his muscles.

And in the end, every new mortgage written during the Deval Patrick era will contain a tax on the citizens of Massachusetts.

Despite their portrayal by some housing advocates as “predators,” subprime mortgage lenders want to help homeowners find better loans because they also lose money on foreclosures, said Kevin Cuff, executive director of the Massachusetts Mortgage Bankers Association.

But by the time many cases reach the foreclosure stage, it’s often too late, “whether we wait 60 days or not,” said Cuff, whose trade group represents about 300 lenders.

Patrick should use his influence to bring the nation’s largest lenders, which hold loans on much of the state’s foreclosed properties, into discussions on how to address the state’s high numbers of foreclosures, Cuff said.

The state had a record 19,487 foreclosure filings last year. Last Wednesday, Patrick announced a plan to lower the foreclosure rate that would include making mortgage fraud a criminal offense and prohibiting abusive foreclosure rescue schemes. via BostonHerald.com.

Related posts:

1. Massachusetts Governor’s Foreclosure Prevention Program Expects Mortgage Companies To Bear Burden
2. Massachusetts New Anti-Mortgage Gets Wells Fargo To Limit Offers
3. Massachusetts Governor Puts Moratorium on Foreclosures
4. 6 US Lenders Offer Project Lifeline To Homeowners in Foreclosure
5. Subprime Loans Lead to High Foreclosure Rate in Massachusetts