Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Paragraph B. of section 2 of chapter 167E of the General Laws, as appearing in the 1992 Official Edition, is hereby amended by striking out paragraph 7A and inserting in place thereof the following two paragraphs:-

7A. Excess of Ninety-five Percent of Value. - A mortgage loan in excess of ninety-five percent of the value of the real estate in order to refinance an existing mortgage loan; provided, however, that any such mortgage loan is written pursuant to an agreement and in accordance with the requirements of the Federal National Mortgage Association and has been accepted for purchase, without recourse, by said association. The provisions of paragraph 4 of section six relative to loan to value ratio shall not apply to any such mortgage loan.

7B. Open-End Mortgage Loans. - Mortgage loans not exceeding in the aggregate eighty percent of the value of the real estate pursuant to an agreement to make loans to the mortgagor from time to time. The aggregate outstanding loans of this class pursuant to a single such agreement shall not exceed one and one-quarter percent of the deposits of such corporation or fifty thousand dollars, whichever is greater. An agreement pursuant to this paragraph shall be deemed a note for the purposes of this section.

SECTION 2. Section 63A of chapter 183 of the General Laws, as so appearing, is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:- A mortgagee may, at the request of the owner of the equity of redemption, revise the rate of interest, extend the term of the mortgage or change the amount of the periodic payments of principal or interest, or both, of an existing note and mortgage from said owner which it holds on a one to four family, owner occupied residence located in the commonwealth; provided, however, that (i) no additional money shall be loaned or advanced thereon, except (a) in accordance with section twenty-eight A, or (b) for the payment of delinquent principal and interest on the original indebtedness to the extent that the aggregate amount outstanding at any one time when added to the balance due on the original indebtedness shall not exceed the amount originally secured by the mortgage or the sum of the outstanding balance due and three delinquent periodic payments of principal and interest, whichever is greater; and (ii) the interest rate on any such note and mortgage, after any such revision, shall not be in excess of the interest rate on the existing note and mortgage so revised.

SECTION 3. Section 70 of chapter 93 of the General Laws, as appearing in the 1992 Official Edition, is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph:-

In connection with the granting of any loan or credit to be secured by a purchase money first mortgage on real estate improved with a dwelling designed to be occupied by not more than four families and occupied or to be occupied in whole or in part by the mortgagor, an attorney acting for or on behalf of the mortgagee shall render a certification of title to the mortgaged premises to the mortgagor and to the mortgagee.