Massachusetts Bad Credit Mortgage Lenders

Home ownership in Massachusetts has tended to be below the national average, with several issues being to blame. The first and foremost issue most often cited for the lack of home ownership in the state is the costly price of domiciles themselves. The average price of a home in Massachusetts is nearly double the national average, reflecting an expensive and therefore somewhat exclusive proposition of buying a house.

This may change however, as the government is looking to make home ownership in Massachusetts easier and cheaper.

As part of the Quality Housing and Work Responsibility Act of 1998, Congress agreed to federalize up to 5,000 units of state public housing in Massachusetts. Relying on a recent United States Court of Appeals decision, Governor Jane Swift wrote to U.S. HUD Secretary Mel Martinez on March 15 and urged him "to proceed with the development of regulations to implement the proposed program of federalization." According to the governor's letter, federalizing 5,000 units "would enable us to focus state resources on the remaining 45,000 units in our portfolio." CHAPA strongly support federalizing these state public housing units.

Also, according to a Harvard study released recently, less than 30 percent of home purchase loans are subject to intensive review under the federal Community Reinvestment Act.

The Joint Center for Housing Studies' report, The 25th Anniversary of the Community Reinvestment Act: Access to Capital in an Evolving Financial Services System, found that CRA made a significant contribution in the growth of lower-income mortgage lending. However, it also concluded that CRA must be modified to reflect the current mortgage industry.

The act would require, as part of the licensing process, that mortgage companies demonstrate how they help meet the housing credit needs of Massachusetts communities, including low- and moderate-income residents. The review would include a written performance evaluation and rating and the opportunity for public input. The bill is before the Committee on Banks and Banking.

With the eventual passing of the bill requiring easier access to mortgages and borrowing facilities, and the federalizing of 5,000 units of housing, the real estate market in Massachusetts looks set to become much more accessible. This being the case, prospective home buyers might want to take a look, or possibly a second look at owning a home in Massachusetts.