New NH Law Aims to Protect Consumers from Foreclosure

Governor John Lynch of New Hampshire signed a new bill, HB 1286, in an effort to curb rising foreclosure rate in the state. The said bill requires the licensing of mortgage originators in order to discourage them from aggressive lending practices. It was authored by Senator Lou D’Allesandro and Representative Tara Reardon.

According to the New Hampshire governor, the new law will help protect consumers from foreclosure. Statewide, the number of homes that entered some stage of foreclosure has soared over the past year. It is believed that the primary reason involved mortgage lenders and brokers who took advantage of borrowers during the most recent housing boom.

With the new law, mortgage originators will recognize their important obligation to their clients and will make sure that all standard guidelines and regulations are followed. This is actually the second step that the state government has taken in response to the enduring foreclosure crisis. Last year, a law involving new regulations and standards on pre-foreclosure transactions, penalties for scam artists and requirement for foreclosure consulting firms to provide greater disclosure was implemented.

In addition, the New Hampshire Banking Department has established a hotline which consumers and troubled homeowners may call if they need answers to mortgage-related questions. The hotline is manned by well-trained and highly-knowledgeable staff, who will guide callers accordingly.

Nationwide, local governments have been forging ties with non-profit organizations in order to provide assistance to distressed homeowners. As the foreclosure crisis endures, many homeowners find themselves with mortgage debts that are no longer manageable. To make matters worse, the skyrocketing prices of fuel has made it even more difficult for these homeowners to prioritize mortgage payments, choosing instead to allocate their money for food and utilities.

For the month of May, the foreclosure rate of New Hampshire posted a 71.14 percent increase from the same period last year, with one filing for every 873 homes.

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