New state legislation that established a moratorium on foreclosures during the coronavirus emergency does not change a lenders’ responsibilities under Massachusetts’ existing right-to-cure law, according to guidance on the moratorium issued by the Division of Banks.

But even if borrowers were already delinquent on their mortgages, lenders and mortgage servicers must suspend foreclosure proceedings during the moratorium.

The new legislation, which went into effect on April 20, establishes a temporary moratorium on foreclosures on 1- to 4-family owner-occupied residential properties in Massachusetts. The foreclosure moratorium lasts until Aug. 18 or 45 days after lifting of the COVID-19 emergency declaration has been lifted, whichever is sooner. The law allows Gov. Charlie Baker to extend the moratorium past Aug. 18.

Even if the borrower has already defaulted on a mortgage and is past the 90-day right-to-cure period, mortgage lenders and servicers are “required to automatically stop moving the foreclosure proceedings forward,” according to the DOB guidance.

The new law, known as Chapter 65, also gives borrowers who have experienced financial difficulties because of COVID-19 the right to obtain a forbearance on their mortgage payments for up to 180 days. This forbearance is available to those who were already delinquent on mortgage payments before the law went into effect and those who had received a right-to-cure notice.

Borrowers will still be able to make their mortgages current under the 90-day right-to-cure law.

Other points made in the DOB guidance include:

• Missed payments are added to the end of the loan, unless the lender and borrower agree to a different payment option.
• Negative mortgage payment information will not be provided to consumer reporting agencies if payments are deferred during the forbearance period.
• The law does not automatically suspend escrow payments made for property taxes and insurance. Borrowers and mortgage servicers should discuss these payments when the borrowers requests forbearance.

The law also allows temporarily suspends the in-person counseling requirement for those seeking reverse mortgages. Instead, borrowers can attend a counseling session through a live video conference or telephone call during the state emergency. Borrowers must speak with a counselor who has been approved by the Executive Office of Elder Affairs.