Massachusetts Attorney General will hold hearings across the state next week on amendments her office has proposed to current mortgage lender and mortgage broker regulations to address unfair and deceptive tactics used in the mortgage industry. The proposed amendments, which were announced last month, are aimed at curbing practices in the mortgage industry which have contributed to the current foreclosure rescue crisis in Massachusetts.

The Attorney General’s Office anticipates that various elected officials, advocacy groups, affected consumers and industry representatives will testify at the regional hearings.

Attorney General Coakley will give opening remarks at the Boston hearing on September 20. Former Chief Judge for the U.S. Bankruptcy Appellate Panel for the First Circuit Court of Appeals Carol Kenner, currently serving Of Counsel to the Attorney General’s Public Protection and Advocacy Bureau, and Assistant Attorney General Christopher Barry-Smith, Chief of the Consumer Protection Division, will serve as the hearing officers.

The Attorney General’s Office proposed several amendments to the current regulations last month. Specifically, the regulations:

Prohibit mortgage brokers or lenders from making a loan if they do not have a reasonable belief that the borrower is able to repay the loan.

Restrict the abuse of no-documentation or “stated income” loans by requiring that the mortgage broker or lender disclose how the interest rates or other charges will increase under a “no-doc” loan, and obtain the borrower’s signed statement of income in order to process those types of loans.

Prohibit mortgage brokers from arranging or processing loans that are not in the borrower’s interest, and prohibit brokers from brokering loans if the broker’s financial interest conflicts with the borrower’s interest.

Prohibit mortgage lenders from steering borrowers to loan products that are more costly than those that the borrower qualifies for, and prohibits lenders from discriminating between similarly qualified borrowers.

The proposed regulations would also expand the scope of the existing mortgage lender and broker regulations prohibiting certain unfair and deceptive advertising practices. The regulations previously applied only to home improvement loans. As amended, the regulations apply to all mortgage loans, including refinancing or purchase money mortgage loans.

In addition to testimony given at these hearings, the Attorney General’s Office will accept written testimony and submissions from the public, with respect to the proposed regulations, through Thursday, September 27.

Upon completion of these hearings, the Attorney General’s Office will have the opportunity to make any appropriate revisions to the proposed regulations before final promulgation. The office anticipates that final promulgation of these regulations will occur by early October 2007.

The hearings will be held at the dates and times below:

Worcester Monday, September 17, 2007, 11:00 a.m.

Worcester Regional Chamber of Commerce

339 Main Street

Worcester, MA

Brockton Tuesday, September 18, 2007, 11:00 a.m

Brockton District Court, Rotunda Room

215 Main Street

Brockton, MA

Springfield Wednesday, September 19, 2007, 10:00 a.m.

Office of the Attorney General

1350 Main Street

Springfield, MA

Boston Thursday, September 20, 2007, 10:00 a.m.

The State House

Gardner Auditorium

Boston, MA