A lender shall not recommend or encourage default on an existing loan or other debt prior to and in connection with the closing or planned closing of a high-cost home mortgage loan that refinances all or any portion of the existing loan or debt.
Mass. Gen. Laws ch. 183C, § 16
Default in connection with refinancing
Known as the Predatory Home Loan Practices Act
The act spans §§ 183C-1 to 183C-9 (19 sections).
Official source: Massachusetts Legislature. Reproduced from public-domain Massachusetts statutes; confirm against the official source for the current text. Not legal advice.