US 2005 Enacted Predatory Mortgage & Subprime Lending Legislation Resources

US 2005 Enacted Predatory Mortgage & Subprime Lending Legislation Resources in United States

US 2005 Enacted Predatory Mortgage & Subprime Lending Legislation Resources

 State: Bill Summary:
 California A.B. 901
Signed by governor 10/5/05, Chapter 531
Provides that the term “covered loan” means a consumer loan in which the original principal balance of the loan does not exceed the most current conforming loan limit for a single-family first mortgage loan established by the federal national mortgage association.
 Illinois H.B. 4050
Signed by governor 7/21/05, Public Act 94-0280
Amends the Residential Real Property Disclosure Act.  Establishes a predatory lending database pilot program within Cook County.  Requires the Department of Financial and Professional Regulation to maintain and administer a predatory lending database based on information submitted by any broker, originator, credit counselor, and title insurance company or closing agent involved in a mortgage transaction on residential real property within the pilot program area.  Sets forth required information to be submitted by those entities to the database and authorizes the Department to require additional information by rule.  Based on information submitted to the Department by the originator, requires the Department to make a determination as to whether credit counseling is recommended to the borrower.  Requires the Department to notify each borrower for which it recommends counseling of all HUD-certified counseling agencies located within the state and direct the borrower to interview with a counselor associated with one of those agencies.  Requires the borrower to select an agency from the notice and to interview with a counselor associated with that agency within 10 days after receipt of the notice.  Prohibits the borrower from waiving the recommended credit counseling.  Requires the title insurance company or closing agent to record simultaneously with the mortgage a certificate of its compliance with database reporting requirements and, if it fails to do so, provides that the mortgage is not recordable.  Requires a certificate of service upon the Department to be recorded simultaneously with any lis pendens recorded on the property and, if no certificate is recorded, provides that this lis pendens is not recordable and is of no force and effect.  Provides that information provided to the database is confidential and exempt from disclosure under the Freedom of Information Act, with certain exceptions.  Amends the Freedom of Information Act to make corresponding changes.  Amends the Consumer Fraud and Deceptive Business Practices Act.  Provides that any person that violates the predatory lending database provisions of the Residential Real Property Disclosure Act commits an unlawful practice within the meaning of the Consumer Fraud and Deceptive Business Practices Act.
 Maine L.D. 1286
Signed by governor 5/24/05, Chapter 211
Requires supervised lenders and mortgage brokers to disclose to persons applying for a mortgage on residential real property if the mortgage loan includes private mortgage insurance and if the company processing the loan application also engages in the business of private mortgage insurance.
 Montana H.B. 557
Signed by governor 3/24/05, Chapter 97
Restricts the amount of insurance that a lender may require a borrower to maintain on a loan secured by real property.
 Rhode Island S.B. 1187
Adopted 6/28/05, Resolution No. 390
Extends the reporting date of the special legislative commission to study predatory mortgage lending practices.
 Tennessee H.B. 1673
S.B. 1785
Signed by governor 6/22/05, Public Chapter 493
Extends reporting deadline of special joint committee created to perform comprehensive analysis of predatory lending from May 1, 2005, to May 1, 2006.  Amends Chapter 871 of the Public Acts of 2002, Chapter 316 of the Public Acts of 2003; and Chapter 746 of the Public Acts of 2004.
 Texas H.B. 955
Signed by governor 6/18/05, Chapter 1018
Relates to interest rates, usury, consumer protections, commercial and consumer lending, licensing of mortgage brokers, savings bank charters, and the regulation of lenders; provides civil and criminal penalties.
H.B. 1582
Signed by governor 6/18/05
Requires the Texas Department of Housing and Community Affairs to conduct a study to examine mortgage foreclosure rates in certain counties.

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