The Massachusetts Senate has approved a bill that would criminalize mortgage fraud, which is currently only a civil offense in the state. The Act To Stabilize Neighborhoods passed the Senate Thursday night; it also provides eviction protection for tenants renting properties in foreclosure, extends the length of time before a lender can foreclose on a property and encourages negotiations over foreclosure.
Attorney General Martha Coakley sent out a statement lauding the bill, which she says would enable prosecutors to hold fraudulent lenders criminally responsible. Massachusetts does not currently have a criminal statute, and fraudulent lenders face only fines for their offenses.
The bill also creates an Abandoned housing registry, which Coakley says will help law enforcement identify and track blighted properties.