Banking Group Outlines Concerns With Boston Foreclosure Proposal

A banking trade group in Massachusetts says it's deeply concerned about a proposal being floated in Boston that would require face-to-face mediation before foreclosing on a property.

Kevin Kiley, of the Massachusetts Bankers Association, says the measure would draw out the foreclosure process and create confusion.

"Presently, foreclosures in Massachusetts are taking upwards of over 300 days — in some cases a year-and-a-half to almost two years," Kiley said. "To start adopting individual city ordinances would create a patchwork of laws throughout Massachusetts on this particular subject."

But Boston Mayor Thomas Menino says the measure addresses complaints that some lenders haven't been responsive to homeowners.

Additionally, Thomas Callahan, of the Massachusetts Affordable Housing Alliance, says it's not necessarily bad to take more time.

"There are properties out there that can be saved," Callahan said, "and this is designed to maximize the opportunity."

The Boston City Council is expected to vote on the plan next week. It would need state approval in order to go into effect.