The Home Affordable Foreclosure Alternatives (HAFA) program is a part of the Home Affordable Modification Program (HAMP), and offers a streamlined process for short sales and deeds-in-lieu of foreclosure. HAFA will allow homeowners to discharge their first mortgage debt without the credit-destroying step of foreclosure. The program also offers a $1,000 incentive to banks to permit short sales and a $1,500 bonus to homeowners for the purpose of relocation.

• The property must be the owner’s principal residence

• The first mortgage must have originated before 2009

• The unpaid principal must be less than $729,750 for a single-family dwelling

• The borrower’s monthly payment must exceed 31% of their gross income

• The mortgage must either be delinquent or a default be reasonably foreseeable.

If borrowers meet the program requirements they will receive pre-approved short sale terms from their lender, which will include a minimum acceptable proceeds figure for the sale. The homeowner will be required to list the property for sale with a Realtor® and close within 120 day, extensions may be permitted up to a total of 12 months.

Based on the short sale agreement with the lender, HAFA requires property owners to be fully released from any future liability on their first mortgage debt, and in some cases, subordinate debts, so that when the home is sold, the borrower is free and clear of their mortgage.

The program ends on December 31, 2012. HAFA does not apply to FHA or VA loans. There is an extensive amount of paperwork to be completed to participate in the program, Homeowners wishing to take advantage of the relief offered are encouraged to work with a experienced Realtor®.

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Massachusetts privacy law requires businesses to implement security controls to protect systems containing Massachusetts resident’s personal information from data loss. 

What is Mass 201 CMR 17? 

In an effort to protect Massachusetts residents from the rising incidence of fraud and identity theft from data loss, the State of Massachusetts has implemented aggressive regulatory requirements to protect personal information. The state now requires mandatory compliance with 201 CMR 17.00 – Standards for the Protection of Personal Information of Residents of the Commonwealth (also known as just 201 CMR 17, or the Massachusetts Privacy Law). Building on California’s landmark security regulation SB-1386, Massachusetts Privacy Law establishes a minimum standard to be met for the protection of Massachusetts resident’s personal information (PI) contained in both paper and electronic records. For the purpose of being compliant with the new Massachusetts data privacy law, PI is defined as a resident’s first name and last name or first initial and last name in combination with any one or more of the following data elements that relate to the resident: 

• Social Security number;
• Driver’s license number or Massachusetts identification card number;
• Financial account number, or credit or debit card number, with or without any required security code, access code, personal identification number or password that would permit access to a resident’s financial account; or
• A biometric indicator (finger prints, DNA, voice prints, etc.).

The Massachusetts data privacy law has set a new level in state security laws by regulating both private and public sector entities that handle Massachusetts resident’s sensitive data, regardless of where that entity is located. The law is intended to bring entities into alignment with both federal and industry security laws, including the Safeguards Rule under the Gramm-Leach-Bliley Act (GLBA) enforced by the Federal Trade Commission (FTC) and Payment Card Industry Data Security Standards (PCI-DSS) security standards overseen by the PCI Security Standards Council. Its process and technical controls are aimed at preventing criminal activity from causing data breaches of either paper or electronic records containing PI. The requirement of securing electronic records includes PI on databases, laptops, applications, portable devices, and just about any other system in which electronic PI data can be either in transit or at rest. 

Who needs Mass 201 CMR 17? 

All persons, corporations, associations, partnerships or other legal entities with systems containing Massachusetts resident’s personal information in transit or at rest are responsible for complying with the 201 CMR 17 regulations by March 1, 2010. However, the regulations alsor equire businesses to complete internal and external security risk assessments prior to the effective date. The regulation applies regardless of whether the entities or the data is either inside or outside state borders, and applies equally to private and public sector organizations. 

Penalties for non-compliance 

The penalties for non-compliance with 201 CMR 17 are enforced through Massachusetts General Law Title XV: Regulation of Trade, chapter 93A, section 4. Violators may be faced with a civil penalty of $5,000 for each violation, are required to pay the reasonable costs of investigation and litigation of such violation (including reasonable attorney’s fees), and are subject to additional civil action since 201 CMR 17 creates a baseline standard that allows plaintiffs in civil suits to argue that a business that lost data was negligent. Title XV also requires any data breach be reported to both the Office of Consumer Affairs and Business Regulation (OCABR) and the Attorney General. 

What you need to be Mass 201 CMR 17 compliant 

The new Massachusetts Privacy Law requires the following criteria be met: 

• An internal and external risk assessment of the human, physical, technical environment based on the criteria outlined in 201 CMR 17.
• the computer security provisions in the regulation use a risk-based approach that comply to the extent that it is technically feasible, meaning that reasonable means must be used to accomplish a required result if there is a reasonable technology is available.
• the results of the internal and external risk assessments must be documented in a Written Comprehensive Information Security Program (WISP).
• the scope of the WISP must be reviewed at least on an annual basis or whenever there is a change in business practices that may impact security controls.

The OCABR published the 201 CMR 17 Compliance Checklist as an aid to be used by either organizations themselves or their auditors when conducting their risk assessment. However, additional guidance on how and where to submit risk assessment results is expected from the state prior to the March 2010 deadline. 

Reference:  http://www.mass.gov/Eoca/docs/idtheft/compliance_checklist.pdf 

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Law Requires 2 Types of Smoke Detector Technology

The two most common methods of fire/smoke detection technology currently used is either ionization or photoelectric based.

Ionization sensors feature a constant current flowing between two electrodes. When smoke strikes the device, it impedes the current between the electrodes and causes the alarm to set off.  Ionization sensors are usually quicker to go off than photoelectric detectors. The problem with ionization detectors is that they are not able to distinguish between smoke and steam.  This makes them prone to false alarms when steam from a shower or other source interrupts the current. This is particularly true when the ionization detector is located near a kitchen or bathroom.

Photoelectric sensors send a beam of light between two sensors. This beam passes in front of the sensors in a direct line. When smoke cuts across the path of the light beam, some light is dispersed by the smoke particles causing it to activate the alarm. Photoelectric detectors are less sensitive to false alarms from steam or cooking exhaust fumes but may take longer than ionization detectors to operate. Another major concern is that ionization detectors do not offer the best protection in fires that smolder. Fires that smolder are some of the deadliest fires nationally. Photoelectric smoke alarms are more sensitive to smoldering, smoke producing fires. Most of the residential dwellings in the country have ionization detectors which are more sensitive to flames.

Tests of both types of alarms show that in smoke producing fires photoelectric detectors sound first and it takes nearly 17 minutes longer before an ionization alarm sounds.

New Fire Detector Regulations

Since there are strengths and weaknesses between photoelectric and ionization smoke detectors, the Board of Fire Prevention Regulation has passed a new regulation (527 CMR 32.00). According to the new regulation, owners of certain residential buildings will be required to install and maintain both the ionization and photoelectric smoke detectors. While the new regulation does not change the locations where smoke detectors are required, it does call for the installation of both technologies in certain locations.

Under the new regulation, an ionization detector can not be placed within 20 feet of a kitchen or a bathroom containing a shower or a tub. In these locations only a photoelectric detector is allowed.  In order to comply with the law you can either install two separate detectors that have both technologies or by installing one that utilizes both.

What Properties Are Affected By The New Regulation?

In order to determine if a property is affected by this change you may consider checking with the local fire department. According to the new amendment the following types of properties are impacted by the new regulation:

• Residential buildings under 70 feet tall and containing less than six dwelling units.
• Residential buildings not substantially altered since January 1, 1975, and containing less than 6 residential units.
• All residential buildings sold or transferred after April 5, 2010, which are less then 70 feet tall, have less than six units, or have not been substantially altered since January 1, 1975.

For all properties in these categories, compliance is mandated by April 5, 2010. It should be noted that the law does not apply to these larger buildings or those which were substantially altered since January, 1975, as these properties already were required to upgrade their fire safety systems under other existing laws.

One other important note regarding smoke detectors: Many towns require hard wired smoke detectors and NOT battery operated. You should make certain you know what the requirement is for the town where the property is located in.  As a general rule according to the State fire Marshall’s office, the law is as follows:

• Homes built after 1975 are required upon sale or transfer to comply with the State Building Code in effect at the time of construction.
• Homes built before 1975 are required upon sale or transfer to comply with the requirements of MGL c. 148, §26E(A); and
• Homes built between 1975 and 1998 are required to have hard wired interconnected smoke detectors outside the bedrooms and one detector on each floor at the top of the stairs. The smoke detector at the top of the stairs can be the same detector that is required outside the bedroom.
• Homes built after 1998, smoke detectors are required to be interconnected and have a battery backup. Smoke detectors are required in each bedroom, outside the bedroom and at the top of each flight of stairs. A single detector can satisfy multiple location requirements, if sited properly. There must also be one smoke detector on each level and one smoke detector for each 1,200 square feet of living space.
• The requirements for newer construction also apply to additions and/or renovations where a bedroom is either added or substantially altered. If an addition or renovation involves adding or substantially changing a bedroom, the entire house, including existing bedrooms must be brought up to the present standard according to the Massachusetts State Building Code (780 CMR), regardless of when the original home was built.Carbon Monoxide detectors are required in any residence that has fossil-fuel burning equipment including, but not limited to, a furnace, boiler, water heater, fireplace or any other apparatus, appliance or device; or has enclosed parking within its structure.

According to the carbon monoxide regulations, you need to have a detector on each finished level of the home. Further there must be a detector placed within ten feet of all the bedroom doors. The detectors do not need to be hard wired. A plug-in or battery operated detector meets the requirements and usually the most viable choice. Here are all the types are carbon monoxide detectors that are allowed:

• Battery powered with battery monitoring;
• Plug-in (AC powered) units with battery backup;
• Hardwired AC primary power with battery backup;
• Low-voltage or wireless alarms with secondary power; and
• Certain combination smoke detectors and CO alarms

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On July 1 2010 a new Massachusetts law goes into effect that will concern certain homeowners.  The new law requires that all 1 to 4 family residential dwellings serviced by a home heating oil system meet new safety standards. 
 
Homeowners using home heating oil must have either an oil supply safety valve or an oil supply line with a special protective sleeve.
 
Homes build after January 1990 should already be in compliance with the new law and would likely have one or both of these safety features installed.
 
However, homes constructed prior to then may not have such safety features and are required to be in compliance and upgraded by July 1, 2010.
 
There are limited exemptions and an upgrade is estimated to cost between $150.00 and $350.00.
 
If you represent a home seller with a property constructed before 1990 confirm with them that they are aware of the new law and that they understand that they will need to be in compliance in order not to complicate a potential sale.
 
If you represent home buyers buying a home subject to the law inform them of the new law and ensure that the seller is incompliance before closing.
 
Read more about the new law here.
 
Here is a helpful .PDF fact sheet for buyers and sellers.