US 2008 Introduced Foreclosure Legislation Resources

US 2008 Introduced Foreclosure Legislation Resources in United States

US 2008 Introduced Foreclosure Legislation Resources

 Alabama H.B. 272
Indefinitely postponed 5/6/08
Under existing law, certain parties may redeem real property sold in foreclosure for up to one year from the date of the sale. This bill removes the right of redemption for commercial property but retains the right of redemption for property used or intended to be used as the owner’s principal dwelling and property used primarily for farming and agricultural purposes.
H.B. 338
Indefinitely postponed 5/6/08
Under existing law, a person has one year to redeem real property that is sold for nonpayment of taxes, that is foreclosed on, or that is sold pursuant to the execution on a judgment of a court. This bill reduces the redemption period of such real property to four months and provides for prospective application for sales pursuant to a foreclosure or court judgment.
H.J.R. 123
Urges Congress to enact the Homeowners and Bank Protection Act of 2007.
H.J.R. 213
Passed House 3/13/08
Urges Congress to enact the Homeowners and Bank Protection Act of 2007.
S.B. 267
Indefinitely postponed 5/8/08
Under existing law, certain parties may redeem real property sold in foreclosure for up to one year from the date of the sale. This bill removes the right of redemption for commercial property but retains the right of redemption for property used or intended to be used as the owner’s principal dwelling and property used primarily for farming and agricultural purposes.
S.J.R. 54
Passed Senate 4/1/08
Urges Congress to implement the Homeowners and Bank Protection Act of 2007.
 Alaska H.B. 163
Passed House 5/5/07
Amends provisions for non-judicial foreclosures.
 Arizona H.B. 2648
Regulates foreclosure consultants; provides for a right of rescission; amends notice requirements for foreclosure actions.
H.B. 2733
Amends provisions regarding foreclosures.
S.B. 1349
Creates the Arizona Home Equity Theft Prevention Act.
 California A.B. 180
Passed Assembly 1/29/08
Allows a homeowner to cancel a contract with a foreclosure consultant within five days after signing the contract, and to do so by mail, e-mail, or facsimile. Requires that a contract with a foreclosure consultant be written in the language principally used by the foreclosure consultant to describe his or her services or to negotiate the contract, and requires the foreclosure consultant, in specified circumstances, to provide the owner, before the owner signs the contract, with one or more copies of a completed contract written in other languages. The bill prohibits a foreclosure consultant from taking any power of attorney from an owner for any purpose. The bill requires a foreclosure consultant to register with the Department of Justice in accordance with certain requirements, and to obtain and maintain a surety bond for each transaction of $100,000. A violation of these provisions would be a crime.
A.B. 1333
Passed Senate 7/7/08
Requires a legal owner of real property to pay a utility service provider for a utility service provided to the property or its tenants following a foreclosure where  the legal owner acquires the property by judicial or nonjudicial sale or purchases the property at a foreclosure sale, the property is residential rental property, and the tenant or tenants pay the landlord for a utility service and are not direct customers of the utility service provider. The bill requires a mortgagee or beneficiary that collects utility charges from a tenant for utility service while foreclosure proceedings are pending, pursuant to an assignment of rents provision in a mortgage agreement, to pay the utility service provider for the utility services for which charges were collected from the tenant. The existing Municipal Utility District Act authorizes the formation of a municipal utility district. The act authorizes a district to acquire, construct, own, operate, control, or use works for supplying the inhabitants of the district and public agencies with light, water, power, heat, transportation, telephone service, or other means of communication, or means for the collection, treatment, or disposition of garbage, sewage, or refuse matter. The act provides that accounts of a municipal utility district that are delinquent become a lien on the property to which services were rendered, with the force, effect, and priority of a judgment lien, when a certificate to this effect is filed for recordation with the county recorder, but exempts from that provision delinquent fees or charges for the furnishing of water or sewer service to residential property or electrical service. This bill deletes the exemption for delinquent fees or charges for the furnishing of water or sewer service to residential property. The bill requires a district that places a lien on a property for water or sewer service to submit to the Assembly and Senate Committees on Judiciary, on or before January 1, 2013, a report containing specified information regarding the liens. The bill repeals these provisions on January 1, 2014.
A.B. 1356
Passed Assembly 1/29/08
Requires the representative of an equity purchaser to provide to the parties to a contract written proof of licensure, as specified. The bill also requires the representative to provide a statement under penalty of perjury and written proof to the parties to the contract that he or she has either (1) satisfied a certain minimum professional liability coverage requirement and has an unrestricted real estate license in good standing, as described by the regulations of the Real Estate commissioner, that is not restricted pursuant to the Real Estate Recovery Program, as specified, or (2) met a certain minimum bonding requirement.
A.B. 1538
Died pursuant to Art. IV, Sec. 10(c) of the Constitution 1/31/08
Existing law creates the California Housing Trust Fund for deposit of certain bond proceeds and other revenues, and provides that the money in the fund is to be used for housing programs, as specified. This bill allows the California Housing Finance Agency to accept donations into the California Housing Trust Fund from public or private sources for the purpose of assisting homeowners to refinance home loans with variable interest rates, under specified circumstances, into stable, fixed rate loan products.
A.B. 2187
Requires a lender or other person foreclosing on real property subject to a mortgage or deed of trust to mail to the borrower, at the time that the notice of default is mailed, a foreclosure statement of rights specifying the processes of foreclosure and setting forth the rights of the borrower regarding contracts with mortgage foreclosure consultants. This bill requires that, for certain agreements secured by a mortgage or deed of trust, a notice of default be in the appropriate language as required by the existing provisions of law governing the translation of agreements. Until January 1, 2013, this bill requires a legal owner to maintain vacant residential property purchased at a foreclosure sale, or acquired by that owner through foreclosure under a mortgage or deed of trust. The bill authorizes a governmental entity to impose civil fines and penalties for failure to maintain that property of up to $1,000 per day for a violation. The bill requires a governmental entity that seeks to impose those fines and penalties to give notice of the claimed violation and an opportunity to correct the violation at least 14 days prior to imposing the fines and penalties, and to allow a hearing for contesting those fines and penalties.
A.B. 2450
States the intent of the Legislature to enact legislation that would require a landlord who acquires title to residential rental property through foreclosure to provide 90 days’ notice to a tenant before the tenant may be removed.
A.B. 2509
Passed Assembly 5/29/08
Requires the agency to establish and administer, until January 1, 2014, the Homeownership Preservation Mortgage Guarantee Program to allow redevelopment agencies, nonprofit community lenders, and small business financial development corporations selected by the agency (administrators) to accept and approve applications for loan guarantees from borrowers, as defined, and, upon approval of an application, issue a loan guarantee to the appropriate lender to back the issuance to the borrower of a new or refinanced loan in lieu of an original loan, as defined. The bill establishes the Homeownership Preservation Mortgage Guarantee Fund in the State Treasury and requires the agency to establish a general account in the fund and, upon receipt of federal funds pursuant to the Neighborhood Stabilization Act of 2008, deposit available funds in that general account. The bill requires the agency to establish a trust account in the fund for each administrator selected to participate in the program and transfer a portion of the funds in the general account to each administrator trust account. The bill requires moneys in an administrator trust account to be used by the administrator exclusively for loan guarantees and administrative costs. The bill specifies that each administrator trust account is a legally separate account and prohibits an account from being used by the agency to back the loan guarantees of another administrator. The bill prohibits an administrator from approving a loan guarantee application unless all of certain criteria relating to the borrower and the original loan are met. The bill prohibits an administrator from issuing a loan guarantee for an amount that is more than 20 percent of the outstanding principal of the original loan or for a term exceeding five years, as specified. The bill requires an administrator to require the terms of the new or refinanced loan to include a requirement that a restrictive covenant be recorded on the property for the term of the loan guarantee, with the terms of the restrictive covenant to be established by the agency.
A.B. 2586
Passed Assembly 5/29/08
Defines a landlord and a tenant for purposes of the provisions governing tenancies. The bill defines a landlord for purposes of these provisions to specifically include an interest acquired pursuant to provisions governing mortgage defaults, as specified. Authorizes a tenant or occupant who has made a payment to a public utility to deduct the amount of the payment from the rent when due, under specified conditions. The bill revises the provisions governing the transfer or return of any security remaining after termination of the tenancy to specifically apply, upon termination of the landlord’s interest in the premises, in the case of a trustee sale and to apply whether the termination of the landlord’s interest in the premises was voluntary or involuntary. The bill defines a “successor in interest” for purposes of these provisions to apply to an interest acquired pursuant to provisions governing mortgage defaults, as specified. The bill also requires a mortgagee, trustee, servicer, or beneficiary to give notice of a possible foreclosure sale, as specified, to the tenants or occupants of each dwelling unit on any property that includes one to four dwelling units.
S.B. 926
Died pursuant to Art. IV, Section 10(c) of the Constitution 1/31/08
Until January 1, 2013, this bill requires, commencing at 120, 90, and 45 days prior to any projected increase of at least 10 percent in mortgage payment amount for a loan made on or before December 31, 2007, that is for an owner-occupied residence, the mailing of specified information related to the interest rate change and payment due, in plain language and in the language in which the mortgage was negotiated, as specified. Until January 1, 2013, and as applied to residential mortgage loans made on or before December 31, 2007, that are for owner-occupied residences, this bill requires, prior to the filing of any notice of default, a mortgagee, trustee, servicer, or beneficiary to conduct an in-person meeting with the borrower, as defined, to assess the borrower’s financial situation, provide the borrower with a list of HUD-certified credit counselors in the borrower’s geographic area, and explore options for the borrower to avoid foreclosure. The bill also requires the mortgagee, trustee, servicer, or beneficiary to offer, if feasible, other nonforeclosure options, as specified. The bill precludes the filing of a notice of default until 30 days after that meeting, and would, upon that filing, require the mortgagee, trustee, servicer, or beneficiary to include a specified declaration regarding the meeting and the offering of alternative terms and options, which, upon a willful misstatement of material fact, may subject that person to a specified civil penalty subject to a civil action by the attorney general, district attorney, county counsel, or city attorney. If a notice of default had already been filed prior to the enactment of this act, the bill would instead require, prior to the notice of sale, an in-person or, at the borrower’s option, telephonic meeting between the above-described parties. Upon filing a notice of sale, the aforementioned declaration requirements and penalty provisions would also apply thereto. The bill also sets forth procedures by which the borrower would be contacted prior to those in-person meetings, defined as “due diligence” on the part of the mortgagee, trustee, servicer, or beneficiary, which would require and include preliminary contact by electronic mail, first class mail, telephone, and certified mail, as specified. The bill also requires specified mailings to the resident of a property that is the subject of the notice of default. Until January 1, 2013, this bill also sets forth specified penalties of up to $1,000 a day for the failure to maintain residential property purchased at a foreclosure sale, as specified and subject to a 14-day abatement period. Until January 1, 2013, this bill gives a tenant or subtenant in possession of a rental housing unit that has been sold due to foreclosure, 90 days to remove himself or herself from the property, as specified.
S.B. 1242
Requires a person or entity that arranges financing in connection with a sale, lease, or exchange of real property and acts as an agent with respect to that property to make a written disclosure of those roles and his or her compensation, within 24 hours, to all parties to the sale, lease, or exchange and any related loan transaction. Requires the representative of an equity purchaser to provide to the parties to a contract written proof of licensure, as specified. The bill also requires the representative to provide a statement under penalty of perjury and written proof to the parties to the contract that he or she has either (1) satisfied a certain minimum professional liability coverage requirement and has an unrestricted real estate license in good standing, as described by the regulations of the Real Estate Commissioner, that is not restricted pursuant to the Real Estate Recovery Program, as specified, or (2) met a certain minimum bonding requirement. Requires residential mortgage lenders or loan servicers of higher-priced mortgage loans, as defined, with variable interest rates to provide borrowers notice of any rate reset 120 days prior to that reset, as specified. Provides that any person who knowingly and willfully defrauds a creditor by acknowledging in the documentation for an owner-occupied residential mortgage loan that the property secured by the loan is to be owner-occupied when that property is actually intended, and used, as rental property, shall be liable for a civil penalty not to exceed 20 percent of the total amount of the residential mortgage loan, with specified exceptions. This bill authorizes a credit against those taxes for each taxable year beginning on or after January 1, 2008, and before January 1, 2011, in an amount equal to 20 percent of any contribution made by a qualified taxpayer, as defined, during the taxable year to any nonprofit, HUD-approved credit counseling agency that assists homeowners with mortgage problems. The bill requires the Franchise Tax Board to report annually to the Legislature with regard to those credits, as specified. This bill, in modified conformity with federal law, provides for an exclusion from gross income for discharges of indebtedness on a principal residence that occur on or after January 1, 2007.
S.B. 1375
Makes a technical, nonsubstantive change to the existing law that specifies the maximum amount of trustee’s or attorney’s fees that can be awarded for enforcement of the terms of a mortgage obligation in default after the notice of sale is deposited in the mail, as specified.
S.J.R. 21
Passed Senate 2/7/08
Memorializes the President and Congress of the United States to enact legislation that would increase the federal conforming loan limit, as specified.
 Colorado H.B. 1381
Postponed indefinitely 4/25/08
Creates special rules for the issuance of a summons and notice to the defendant in a case involving forcible entry and detainer of foreclosed residential property. Requires the plaintiff to provide contact information for negotiations concerning the terms of a voluntary surrender of the property. Expands the definition of the criminal offense of equity skimming to include the act of continuing to collect rent from a tenant after foreclosure and sale of the property to another person.
 Connecticut H.B. 5164
Failed Joint Favorable deadline 3/6/08
Creates a statutory cause of action and remedy for purchasers of foreclosed property where the property value is diminished through intentional damage during the period of time between the sale of the property and possession by the purchaser.
H.B. 5165
Failed Joint Favorable deadline 3/6/08
Requires banks to participate in the Emergency Mortgage Assistance Program; expands the program to homeowners faced with resets or other increases in the mortgage interest rate; requires that moneys received for the repayment of emergency mortgage assistance payments be used solely for the purposes of said program; and provides funding for said program in the amount of $5 million dollars.
H.B. 5550
Failed Joint Favorable deadline 3/6/08
Authorizes tenants to continue to occupy property that is in foreclosure and provides for payment of relocation costs, if necessary.
H.B. 5552
Protects homeowners and renters in the foreclosure process by establishing a duty for mortgagors and mortgage servicers to resolve cases so that the homeowner retains the home, requires plain language notices and that pleadings be sent to defendants, and protects renters in foreclosed buildings.
H.B. 5553
Prohibits people from advertising, offering, arranging, soliciting, promoting, promising, or carrying out foreclosure rescue transactions for profit. It exempts nonprofit organizations from this prohibition. The bill prohibits the acceptance of advance fees for foreclosure-related services, except in certain cases for licensed attorneys, licensed mortgage brokers and lenders, and other financial institutions. When permitted advance fees are accepted, the bill subjects entities to disclosure regulations. Under the law, mortgage brokers and lenders must also comply with all rules and regulations governing the marketing of mortgage loans. The bill also authorizes the banking commissioner to adopt regulations to implement these prohibitions. The bill applies to transactions involving people with legal or equitable interest in residential property (homeowners) who reside in buildings with one to six units (residential property). Violations are unfair trade practices and subject to the appropriate civil proceedings under the Connecticut Unfair Trade Practices Act (CUTPA).
H.B. 5758
Makes numerous revisions in the homeowner mortgage foreclosure protection law. It: 1) expands eligibility for court-ordered homeowner protection, 2) extends the filing deadline, 3) revises the factors the court must consider when determining eligibility, 4) extends the maximum restructuring period from six to 12 months, 5) raises the cap on the amount of mortgage debt following restructuring, 6) requires the chief court administrator to issue certain disclosure forms, and 7) requires courts to construe the law in a way to implement its remedial nature.
S.B. 208
Authorizes the State Bond Commission to issue bonds of the state in accordance with §3-20 the proceeds of which shall be used by the Department of Economic and Community Development for the purpose of providing a grant-in-aid to the Connecticut Housing Finance Authority for the emergency mortgage assistance payment program established pursuant to §8-265dd of the General Statutes.
S.B. 347
Makes numerous revisions in the homeowner mortgage foreclosure protection law. It: 1) expands eligibility for court-ordered homeowner protection, 2) extends the filing deadline, 3) revises the factors the court must consider when determining eligibility, 4) extends the maximum restructuring period from six to 12 months, 5) raises the cap on the amount of mortgage debt following restructuring, 6) requires the chief court administrator to issue certain disclosure forms, and 7) requires courts to construe the law in a way to implement its remedial nature.
 Delaware S.B. 163
Passed Senate 7/1/07
Enacts the Mortgage Rescue Fraud Protection Act; regulates foreclosure consultants and foreclosure reconveyances in order to protect homeowners in foreclosure from mortgage rescue schemes that deplete the homeowner’s equity; relates to disclosures, contracts, deeds and titles, prohibited acts, and other provisions.
S.B. 190
Appropriates additional funding for a study of foreclosures and consumer protection in Delaware.
S.B. 252
Passed both houses 7/1/08
Regulates foreclosure consultants and foreclosure reconveyances in order to protect homeowners from foreclosure rescue schemes that deplete the homeowner’s equity.
 District of Columbia B17-0579
Enacts a new mortgage law for the District of Columbia which will create a foreclosure process that is definite, fair, inclusive, and improved for all affected persons.
 Florida H.B. 259
Died in committee 5/2/08
Requires that before a court-ordered sale of property, the mortgagee or lienholder must serve a “Notice Regarding Requested Property Sale” to the property owner or owners which will inform the owner of the possibility of relief through the filing of a bankruptcy petition and warning against purported foreclosure “saving” schemes. Provides for an affirmative defense for failing to provide the notice.
H.B. 835
Died in council 5/2/08
S.B. 2214
Died in committee 5/2/08
Provides requirements for foreclosure consultant contracts and for rescission of such contracts. Provides requirements for foreclosure conveyance contracts and for cancellation of such contracts. Specifies prohibited activities for foreclosure consultants and foreclosure purchasers. Specifies certain violations as unlawful practices and provides for remedies under the Florida Deceptive and Unfair Trade Practices Act.
H.B. 895
Died in committee 5/2/08
S.B. 2404
Died in committee 5/2/08
Designates act “Florida Foreclosure Relief Act”; provides timeframe for sale of property under order or judgment when property was secured through subprime loan; defines “subprime loan”; requires mortgagor to establish prima facie case in motion or pleading; provides requirements with respect to such pleading; provides for expiration of provisions; requires specified notice.
S.B. 656
Died in House 5/2/08
Requires that before a court-ordered sale of property, the mortgagee or lienholder must serve a “Notice Regarding Requested Property Sale” to the property owner or owners which will inform the owner of the possibility of relief through the filing of a bankruptcy petition and warning against purported foreclosure “saving” schemes. Provides for an affirmative defense for failing to provide the notice.
 Georgia H.B. 1319
Relates to foreclosure in general, so as to change the time for delivery notice of the initiation of foreclosure proceedings; provides for a right to cure foreclosure on the part of the debtor.
H.B. 1320
Relates to mortgages, conveyances to secure debt, and liens in general, so as to provide that upon a foreclosure of residential real property, a tenant occupying a dwelling unit under an unexpired term for years or a lease for a definite term in effect at the time of the foreclosure by sale shall be deemed a tenant at will.
H.B. 1413
Relates to residential mortgage fraud, so as to modify certain provisions relating to the offense of residential mortgage fraud; provides for legislative intent; to provide for definitions; includes in the criminal offense of residential mortgage fraud an act of fraud committed upon homeowners during or threatened with foreclosure.
H.B. 1438
Relates to mortgages, conveyances to secure debt, and liens, so as to enact the “Foreclosure Rescue Fraud Prevention Act”; provides for legislative findings and intent; provides for definitions; provides that deeds or other conveyances of interests in property purporting to be an absolute conveyance of title but was made a security for the performance of an obligation shall be deemed to be an equitable mortgage; provides for determinations of whether such deeds or other conveyances are equitable mortgages; provides that holders of equitable mortgages shall not be authorized to evict a homeowner except through the foreclosure process; provides for the application of certain state and federal laws to such mortgages; provides that all foreclosure rescue transactions shall be deemed equitable mortgages; provides for certain notices and recordations; provides that unfair foreclosure rescue transactions are unlawful and voidable; provides for remedies; provides for certain rebuttable presumptions; provides for reformation of equitable mortgages; provides for obligations and payments under equitable mortgages; provides for stays of eviction actions under certain circumstances.
H.R. 1153
Urges the Congress of the United States to enact a “Homeowners and Bank Protection Act” for the protection of homeowners and banking institutions.
S.B. 459
Provides that residential real estate sales made under power of sale contained in mortgages, deeds, or other lien contracts shall be advertised weekly for 10 weeks.
S.B. 465
Relates to sales made under the power of sale, mailing or delivery of notice to debtor, and procedure, so as to change the requirement for sending such notice for high cost home loans.
S.B. 519
Passed Senate 3/11/08
Relates to sales made under the power of sale, mailing or delivery of notice to debtor, and procedure, so as to change the requirement for sending such notice.
S.B. 527
Relates to mortgages, conveyances to secure debt, and liens, so as to enact the “Foreclosure Rescue Fraud Prevention Act”; provides for legislative findings and intent; provides for definitions; provides that deeds or other conveyances of interests in property purporting to be an absolute conveyance of title but was made a security for the performance of an obligation shall be deemed to be an equitable mortgage; provides for determinations of whether such deeds or other conveyances are equitable mortgages; provides that holders of equitable mortgages shall not be authorized to evict a homeowner except through the foreclosure process; provides for the application of certain state and federal laws to such mortgages; provides that all foreclosure rescue transactions shall be deemed equitable mortgages; provides for certain notices and recordations; provides that unfair foreclosure rescue transactions are unlawful and voidable; provides for remedies; provides for certain rebuttable presumptions; provides for reformation of equitable mortgages; provides for obligations and payments under equitable mortgages; provides for stays of eviction actions under certain circumstances.
 Hawaii H.B. 2251
Requires any residential real property equity purchaser to provide homeowner with certain disclosures. Requires notices and sales contracts to be in writing, and provides cooling off period for homeowner to cancel sale contract.
H.B. 2837
Amends certain sections of the mortgage foreclosures law to ensure that consumers and others receive important information regarding a foreclosure in a timely manner.
H.B. 3104
S.B. 3026
Passed Senate 3/4/08
Requires mortgage foreclosure rescuers to provide specific information and disclosures to distressed property owners as well as impose specific prohibitions on mortgage foreclosure rescuers.
 Idaho S.B. 1392
Provides that all contracts entered into while a residential home is in the foreclosure process must be in writing and that consumers have a five day right of rescission. In addition, a warning for consumers about foreclosure rescue scams is included in foreclosure notification papers and in any written contract.
 Illinois H.B. 838
Amends the Code of Civil Procedure. Provides that a foreclosure complaint must specify the real party in interest (instead of the capacity in which the plaintiff brings the foreclosure action) and have attached to it a copy of the mortgage and note, but if they are unavailable, an affidavit shall be attached to the complaint that states information about all holders of the note and what attempts were made to obtain the note. Provides that in all foreclosure actions the plaintiff shall attach a notice to the complaint and summons stating the homeowner’s rights concerning possession, ownership, reinstatement, redemption, and other matters. Provides a procedure for a mortgagor to make a demand for loan payoff information that includes payoff demand statement requirements and other matters. Provides that the court may award reasonable attorney’s fees and costs to the prevailing party in a foreclosure action.
H.B. 4191
Passed House 1/10/08
Amends Public Act 95-691 (concerning home equity assurance and foreclosure prevention) to provide that it takes effect upon the effective date of this amendatory Act. Authorizes the state treasurer to accept a proposal from an eligible institution that provides for interest earnings on deposits of state moneys to be held by the institution in a separate account that the state treasurer may use to secure up to 10 percent of any existing home loans of Illinois citizens who are at risk of losing their homes if they experience a financial hardship due to circumstances beyond their control where there is a reasonable prospect that they will be able to resume or continue full mortgage payments. In the definition of “home loan,” provides that the principal amount of the loan may not exceed 50 percent of the conforming loan size limit, as established from time to time by the Federal National Mortgage Association.
H.B. 4195
Sent to governor 6/18/08
Provides that a specified notice shall be sent by mail to a mortgagor prior to a judicial sale, even if the mortgagor was previously defaulted, that will notify the homeowner of the right to remain in possession for 30 days after the entry of the order of possession, unless that right was previously terminated by the court.
H.B. 4577
Amends the Code of Civil Procedure. Provides that if there is a surplus after a judicial sale or mortgage foreclosure, the circuit clerk shall collect a $20 fee for each surplus proceeds deposit. Provides that the clerk of the circuit court shall notify each defendant mortgagor by mail at the last address provided that a surplus was deposited and that a petition may be filed for turnover of surplus funds but if no address was provided, the clerk shall not notify the defendants of the deposit.
H.B. 4611
Sent to governor 6/18/08
Amends the Deposit of State Moneys Act. Authorizes certain linked deposits for loans to persons refinancing a home as well as for purchasing a home. Provides that for a “home loan”, the principal amount of the loan may not exceed the conforming loan size limit (instead of 50 percent of that limit for a single-family dwelling) established by the Federal National Mortgage Association.
H.B. 5672
Amends the Code of Civil Procedure. Provides that in counties with a population of three million or more, the demand for possession or for rent required in a forcible entry and detainer action, and the notice of foreclosure, foreclosure complaint, and notice of judicial sale in mortgage foreclosure proceedings, shall state the name and date of birth of each known occupant of the premises and the name of each known occupant who has a disability. Provides that a judgment of foreclosure may include special matters including, but not limited to, in counties with a population of three million or more, whether any known occupant is age 14 or younger, age 65 or older, or disabled.
H.B. 5728
Creates the Home Protection Pilot Program Act. Requires the Illinois Housing Development Authority to implement a pilot program to assist Illinois workers who have lost jobs as a result of changing economic conditions in Illinois when those workers are in need of assistance to avoid losing their homes to foreclosure. Provides that the Program shall include counties selected at the discretion of the Authority on the basis of increased rates of foreclosure, actual foreclosure filings, unemployment, the need of local counseling agencies for increased capacity to serve clients in need of assistance to avoid losing their homes to foreclosure, the availability of funding, and other factors the Authority determines to be relevant. Provides for loans to homeowners secured by liens on residential real property located in Illinois, and prohibits a mortgagee from engaging in certain conduct upon a mortgagor’s filing of an application for loan assistance. Sets forth other provisions of the Program. Requires the Authority to conduct a study and to report to the governor and the General Assembly by May 1, 2009. Provides that neither the governor nor any agency or agency head under the jurisdiction of the governor has any rulemaking authority under the Act, but that the governor may suggest rules by filing them with the General Assembly and requesting that the General Assembly authorize such rulemaking by law, enact the suggested rules into law, or take other appropriate action in the General Assembly’s discretion.
H.B. 5788
Amends the Illinois Housing Development Act. Provides that the Illinois Housing Development Authority shall establish and administer a foreclosure prevention counseling program and shall use moneys in the Foreclosure Prevention Counseling Fund and funds appropriated for that purpose to make grants to HUD-certified counseling agencies for home-ownership education and foreclosure prevention counseling. Amends the State Finance Act. Creates the Foreclosure Prevention Counseling Fund and provides for allocation of moneys in the Fund. Provides for the payment of license fees of $3,000 annually, including the foreclosure prevention surcharge (instead of $2,700 annually). Amends the Residential Mortgage License Act of 1987. Provides that an application for a license or a license renewal on or after July 1, 2008, shall include payment of a foreclosure prevention surcharge of $1,000. Provides that the surcharge proceeds shall be deposited into the Foreclosure Prevention Counseling Fund. Provides that provisions concerning foreclosure prevention counseling program shall be repealed three years after the effective date of the amendatory Act. Provides that provisions concerning the Foreclosure Prevention Counseling Fund shall be repealed three years after the effective date of the amendatory Act. Provides that the payment of investigation and application fees, the total of which shall be in an amount equal to $3,000 (rather than $2,700), including the foreclosure prevention surcharge provided for in specified provisions; however, three years after the effective date of the amendatory Act of the 95th General Assembly, the total shall be in an amount equal to $2,700 annually. Provides that any application for issuance or renewal of a license for a period beginning on or after July 1, 2008, shall include payment of a foreclosure surcharge in the amount of $300. Provides that specified provisions concerning an application for issuance or renewal of a license shall be inoperative three years after the effective date of the amendatory Act. Further amends the State Finance Act. Replaces new Section with provisions substantially similar to those in the bill, as amended, except for the following changes: (1) The Foreclosure Prevention Counseling Fund shall consist of all moneys deposited, transferred, or appropriated into the Fund from any legal source. (2) Subject to appropriations, the Illinois Housing Development Authority shall use the Fund in the following manner: 75 percent of the moneys shall be used for grants to HUD-certified counseling agencies outside Chicago for foreclosure counseling and 25 percent of the moneys shall be distributed to the City of Chicago to make grants to support pre-purchase and post-purchase home-ownership education and foreclosure prevention counseling. Provides that notwithstanding any other contrary law, the Fund is not subject to sweeps, administrative charges, charge-backs, or any other budgetary maneuver that would transfer any moneys in the Fund to another state fund.
H.B. 5893
Creates the Foreclosure Protection Act. Sets forth the findings of the General Assembly. Sets forth the requirements for foreclosure consulting contracts. Provides for a right of cancellation of foreclosure consulting contracts. Sets forth prohibited acts by foreclosure consultants and criminal penalties. Sets forth standards of unconscionability and specific language requirements for foreclosure consulting contracts. Sets forth certain requirements for equity purchase contracts, including a home owner’s right to cancel an equity purchase contract. Provides that a transaction in which a home owner purports to grant a residence in foreclosure to an equity purchaser by an instrument that appears to be an absolute conveyance and reserves to the home owner or is given by the equity purchaser an option to repurchase shall be permitted only when certain conditions have been met. Sets forth prohibited conduct of equity purchasers and criminal penalties. Provides that violations of the Act constitute unfair trade practices subject to penalty under the Consumer Fraud and Deceptive Business Practices Act and amends the Consumer Fraud and Deceptive Business Practices Act to include the violations.
H.B. 5894
Amends the Attorney General Act. Requires the attorney general to establish and operate a Foreclosure and Mortgage Questions Hotline. Requires Hotline counselors to provide information and counseling concerning mortgages and mortgage foreclosures and to act as facilitators for communication between lenders and borrowers.
H.B. 5895
Creates the Mortgage Foreclosure Consultant Licensing Act. Provides for the licensure of mortgage foreclosure consultants with the Department of Financial and Professional Regulation. Sets forth powers and duties of the Department, licensure and written agreement requirements, grounds for discipline, civil and criminal penalties for violation of the Act, and administrative procedure. Includes provisions concerning exemption from the Act. Provides that the Act does not limit the power of a unit of local government from regulating or licensing the practice of mortgage foreclosure consulting in a stricter manner. Amends the Regulatory Sunset Act to set a repeal date of January 1, 2019 for the new Act.
H.B. 5896
Provides that, prior to commencing a mortgage foreclosure action, the plaintiff must contact the mortgagor advising the mortgagor of foreclosure in the near future and notifying the mortgagor that an in-person meeting to review refinancing the mortgage loan is available. Provides the notice must also contain a list of HUD-certified credit counselors. Provides that the plaintiff must wait at least 30 days after the date of the in-person meeting, or 30 days after the notice was served if no meeting was requested by the mortgagor, before the action to foreclose may be commenced. Provides that the plaintiff in any foreclosure action must attach to the complaint a sworn affidavit stating that these requirements have been complied with.
H.B. 6646
Amends the Illinois Housing Development Act. Provides that the Authority must use at least $1,000,000,000 of its borrowing authority to refinance residential adjustable-rate mortgages with increased interest rates that take effect within five years after the effective date of the amendatory Act. Provides that the Authority must work with entities in the private sector to make and manage the loans.
H.J.R. 105
Passed House 5/14/08
Creates a Foreclosure Prevention Task Force. Provides that the Department of Financial and Professional Regulation shall provide administrative support for the Task Force.
H.R. 761
Urges Congress to enact a Homeowners and Banks Protection Act.
H.R. 1276
Urges Congress to enact a two-year moratorium on interest rate reset increases under sub-prime adjustable rate mortgage home loans.
S.B. 1718
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.
S.B. 1879
Sent to governor 6/27/08
Provides that for all residential foreclosure actions filed, the plaintiff must attach a Homeowner Notice to the summons that contains specified information. Contains provisions concerning the preparation and delivery of payoff demand statements. Contains provisions concerning attorney’s fees and costs associated with foreclosure actions.
S.B. 1979
To concurrence 5/29/08
Creates the Illinois Homeowner’s Emergency Assistance Program Act. Contains provisions concerning the powers and duties of the Illinois Housing Development Authority with respect to the Act, the eligibility of a homeowner for assistance under the Act, the assistance payments for eligible homeowners, and funding for the program. Provides that neither the governor nor any agency or agency head under the jurisdiction of the governor has any rulemaking authority under the Act, but that the governor may suggest rules by filing them with the General Assembly and requesting that the General Assembly authorize such rulemaking by law, enact the suggested rules into law, or take other appropriate action in the General Assembly’s discretion. Provides that the Act is repealed on January 1, 2010.
S.B. 1998
Passed Senate 4/17/08
Creates the Homeowner Protection Act. Contains provisions concerning credit counseling prior to perfecting foreclosure proceedings. Provides that a servicer shall compile and submit to the secretary of Financial and Professional Regulation on or before the twentieth business day of every other month a Foreclosure Prevention Report that contains specified information for the preceding two months or as otherwise indicated. Provides that the secretary may publish for public review the Foreclosure Prevention Report or any information contained in the Foreclosure Prevention Report, except for personally-identifying information regarding borrowers. Specifies that certain provisions are repealed on December 31, 2010. Contains provisions concerning the enforcement of the Act by the secretary. Provides that neither the governor nor any agency or agency head under the jurisdiction of the governor has any rulemaking authority under the Act, but that the governor may suggest rules by filing them with the General Assembly and requesting that the General Assembly authorize such rulemaking by law, enact the suggested rules into law, or take other appropriate action in the General Assembly’s discretion. Provides that all final administrative decisions under the Act are subject to judicial review pursuant to the provisions of the Administrative Review Law and any rules adopted pursuant thereto. Provides that there shall be no waiver of any provision of the Act.
S.B. 2064
Amends the Code of Civil Procedure. Provides that in counties with a population of three million or more, the demand for possession or for rent required in a forcible entry and detainer action, and the notice of foreclosure, foreclosure complaint, and notice of judicial sale in mortgage foreclosure proceedings, shall state the name and date of birth of each known occupant of the premises and the name of each known occupant who has a disability. Provides that a judgment of foreclosure may include special matters including, but not limited to, in counties with a population of three million or more, whether any known occupant is age 14 or younger, age 65 or older, or disabled.
S.B. 2131
Amends the Code of Civil Procedure. Provides that a complaint to foreclose on a mortgage shall not be filed prior to January 1, 2010 on residential real estate property if the property is a single family residence or a residential condominium and if the mortgagor is paying the current interest and the current required reserve or escrow payments for real estate taxes and insurance.
S.B. 2272
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.
S.B. 2376
Amends the Code of Civil Procedure. Provides that in a mortgage foreclosure proceeding, where a timely written notice concerning rent payment was not given to the tenant, or where the tenant makes a good-faith effort to keep current in the rent, an order of possession must allow the tenant to retain possession under the lease. Provides that no mortgagee-in-possession, receiver or holder of a deed or certificate of sale, or purchaser shall file a forcible entry and detainer action against a tenant of mortgaged real estate until 90 days after a notice of the intent to file that action is served on the tenant. Provides that the court records relating to a supplemental petition for possession against a tenant who is current on rent or who made good faith efforts to pay the rent shall be ordered sealed, except as to a law enforcement officer or a government entity.
S.B. 2566
Passed Senate 4/3/08
Amends the Illinois Housing Development Act. Provides that the Illinois Housing Development Authority shall establish and administer a foreclosure prevention counseling program and shall use moneys in the Foreclosure Prevention Counseling Fund and funds appropriated for that purpose to make grants to HUD-certified counseling agencies for home-ownership education and foreclosure prevention counseling. Amends the State Finance Act. Creates the Foreclosure Prevention Counseling Fund and provides for allocation of moneys in the Fund. Provides for the payment of license fees of $3,200 annually, including the foreclosure prevention surcharge (instead of $2,700 annually). Amends the Residential Mortgage License Act of 1987. Provides that an application for a license or a license renewal on or after July 1, 2008, shall include payment of a foreclosure prevention surcharge of $500. Provides that the surcharge proceeds shall be deposited into the Foreclosure Prevention Counseling Fund. (1) Further amends the Illinois Housing Development Act and the State Finance Act by providing that neither the governor nor any agency or agency head under the jurisdiction of the governor has any rulemaking authority under this amendatory Act, but that the governor may suggest rules by filing them with the General Assembly and requesting that the General Assembly authorize such rulemaking by law, enact the suggested rules into law, or take other appropriate action in the General Assembly’s discretion. (2) The section creating the foreclosure prevention counseling program is repealed three years after the effective date of this amendatory Act. (3) The Foreclosure Prevention Counseling Fund shall consist of all moneys deposited, transferred, or appropriated into the Fund from any legal source. (4) Provides that subject to appropriations, the Authority shall use the moneys in the Fund in the following manner: (a) 75 percent of the moneys in the Fund, subject to appropriation, shall be used to make grants to HUD-certified housing counseling agencies that provide services outside Chicago, provided that the grants shall be based upon the number of foreclosures filed in a counseling agency’s service area, the capacity of a counseling agency to provide foreclosure counseling services, and any other appropriate facts; and (b) the remaining moneys shall be distributed to the City of Chicago to provide, through the City’s programs, grants to HUD-certified housing counseling agencies in Chicago for pre-purchase and post-purchase home-ownership education and foreclosure prevention counseling. (5) Provides that notwithstanding any other law, the Fund is not subject to sweeps, administrative charges or charge-backs, or any other fiscal or budgetary maneuver that would in any way transfer any funds from the Fund into any other fund of the state. (6) Provides that the section concerning the grants is repealed three years after the effective date of this amendatory Act.
S.B. 2647
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.
S.B. 2648
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.
S.B. 2721
Sent to governor 6/27/08
Amends the Code of Civil Procedure. Provides that in a mortgage foreclosure proceeding, where a timely written notice concerning rent payment was not given to the tenant, or where the tenant makes a good-faith effort to keep current in the rent, an order of possession must allow the tenant to retain possession under the lease. Provides that no mortgagee-in-possession, receiver or holder of a deed or certificate of sale, or purchaser shall file a forcible entry and detainer action against a tenant of mortgaged real estate until 90 days after a notice of the intent to file that action is served on the tenant. Provides that the court records relating to a supplemental petition for possession against a tenant who is current on rent or who made good faith efforts to pay the rent shall be ordered sealed, except as to a law enforcement officer or a government entity.
S.B. 2890
Amends the Code of Civil Procedure. Makes a technical change in a Section regarding the short title of the Article concerning mortgage foreclosures.
 Indiana H.B. 1166
Eliminates the requirement that a sheriff post notice of a foreclosure sale in at least three public places in each township where the real estate is located.
H.B. 1211
Requires the department of local government finance (DLGF) to establish an electronic system for the collection and storage of sales disclosure form data for real estate conveyances. Provides that the system must allow closing agents to input the sales disclosure form data into the system; and (2) submit the form electronically to a data base maintained by the DLGF. Requires the DLGF to make the data base accessible to county auditors, county and township assessors, and the legislative services agency. Requires the DLGF to establish electronic systems that automatically apply: (1) the mortgage deduction to a person entitled to the deduction; and (2) the homestead credit to a person entitled to the credit. Provides that the systems must allow closing agents to: (1) input information about the mortgage transaction that is the basis for the deduction or the credit; and (2) submit the form electronically to data bases maintained by the DLGF. Requires the DLGF to make the data bases accessible to county auditors. Requires a county auditor to accept an electronic filing for the mortgage deduction or the homestead credit if the filing is complete. Prohibits a county auditor from requiring any other information or form of identification for a person to claim the mortgage deduction or the homestead credit. Requires the DLGF to establish an electronic system for the collection and storage of the: (1) names; and (2) license, registration, or certificate numbers; of certain professionals that participate in or assist with residential mortgage transactions. Provides that the system must allow closing agents to: (1) input the required information with respect to each professional involved in the transaction; and (2) submit the form electronically to a data base maintained by the DLGF. Requires the DLGF to make the data base accessible to: (1) the state agencies responsible for regulating the specified professionals; and (2) the homeowner protection unit in the attorney general’s office. For residential mortgage transactions that close after June 30, 2008, and before January 1, 2010, requires a closing agent to do the following at the time of closing: (1) In the case of a first lien purchase money mortgage transaction, provide the customer with the sales disclosure form prescribed by the DLGF and the applications for the homestead credit and the mortgage deduction. (2) In the case of a refinancing, provide the customer with the application for the mortgage deduction. (3) Require the customer to complete and sign the form or forms provided. (3) Collect the signed and completed forms for filing. (4) Inform the customer of other specified property tax deductions by providing the customer with a form prescribed by the DLGF that describes the deductions. Requires the closing agent to file the signed forms with the appropriate county auditor. For a residential mortgage transaction that closes after December 31, 2009, requires a closing agent to input and submit the following information to the appropriate data bases maintained by the DLGF, as applicable: (1) Information to enable the customer to obtain the mortgage deduction and the homestead credit. (2) Sales disclosure form data. (4) The names and license, certificate, or registration numbers of specified professionals involved in the transaction. Provides that: (1) purchase money mortgage transactions; and (2) refinancings of first lien mortgage transactions; are subject to regulation under the Uniform Consumer Credit Code (UCCC). Requires settlement service providers to make closing documents available to borrowers at least 48 hours before the closing. Provides that if terms of the home loan set forth in the documents provided differ from the terms presented to the borrower at the time of closing, the borrower is entitled to delay or reschedule the closing without penalty and without forfeiting the right to enter into the loan or the purchase contract. Prohibits a creditor from: (1) recommending or issuing a stated income or no documentation loan to a prospective borrower; or (2) recommending or issuing a home loan to a prospective borrower without first conducting a reasonable inquiry into the prospective borrower’s creditworthiness. Provides that if a creditor conducts a reasonable inquiry, the creditor is not liable if the borrower later defaults on a home loan issued by the creditor. Requires creditors to offer: (1) a temporary forbearance, subject to terms agreed upon by the creditor and the borrower; (2) a payment plan; or (3) an option for the refinancing, restructuring, or workout of existing indebtedness; whenever a home loan becomes 60 days past due. Requires various state agencies to form the mortgage lending and fraud prevention task force to coordinate the state’s efforts to: (1) regulate the various participants involved in originating, issuing, and closing home loans; (2) enforce state laws and rules concerning mortgage lending practices and mortgage fraud; and (3) prevent fraudulent practices in the home loan industry and investigate and prosecute cases involving mortgage fraud. Requires the securities commissioner and the director of the department of financial institutions to cooperate to determine the appropriate state agency or department to regulate a person subject to regulation, licensure, or registration under both the loan broker statute and the UCCC. Repeals provisions that exclude mortgage transactions from the UCCC. Beginning with the school year that begins in 2010, requires school corporations and accredited nonpublic schools to include in their curricula for grades 9 through 12 instruction designed to: (1) increase students’ awareness of consumer transactions, including mortgage transactions; and (2) foster personal financial responsibility. Provides that a school corporation or an accredited nonpublic school may provide the instruction by integrating it into its mathematics curriculum. Requires the department of education and the department of financial institutions to develop guidelines to assist teachers assigned to provide the instruction.
H.B. 1360
Passed House 1/30/08
Requires the homeowner protection unit (unit) within the attorney general’s office to establish a toll free telephone number to receive calls from persons having information about suspected fraudulent transactions and practices concerning residential real estate transactions. Requires the unit to share information reported by callers to the telephone number with appropriate law enforcement and regulatory agencies. Requires the department of local government finance (DLGF) to establish an electronic system for the collection and storage of sales disclosure form data for real estate conveyances. Provides that the system must allow closing agents to input the sales disclosure form data into the system; and (2) submit the form electronically to a data base maintained by the DLGF. Requires the DLGF to make the data base accessible to county auditors, county and township assessors, and the legislative services agency. Requires the DLGF to establish electronic systems that automatically apply: (1) the mortgage deduction to a person entitled to the deduction; and (2) the homestead credit to a person entitled to the credit. Provides that the systems must allow closing agents to: (1) input information about the mortgage transaction that is the basis for the deduction or the credit; and (2) submit the form electronically to data bases maintained by the DLGF. Requires the DLGF to make the data bases accessible to county auditors. Requires a county auditor to accept an electronic filing for the mortgage deduction or the homestead credit if the filing is complete. Prohibits a county auditor from requiring any other information or form of identification for a person to claim the mortgage deduction or the homestead credit. Requires the DLGF to establish an electronic system for the collection and storage of the: (1) names; and (2) license, registration, or certificate numbers; of certain professionals that participate in or assist with residential mortgage transactions. Provides that the system must allow closing agents to: (1) input the required information with respect to each professional involved in the transaction; and (2) submit the form electronically to a data base maintained by the DLGF. Requires the DLGF to make the data base accessible to: (1) the state agencies responsible for regulating the specified professionals; and (2) the homeowner protection unit in the attorney general’s office. For residential mortgage transactions that close after June 30, 2008, and before January 1, 2010, requires a closing agent to do the following at the time of closing: (1) In the case of a first lien purchase money mortgage transaction, provide the customer with the sales disclosure form prescribed by the DLGF and the applications for the homestead credit and the mortgage deduction. (2) In the case of a refinancing, provide the customer with the application for the mortgage deduction. (3) Require the customer to complete and sign the form or forms provided. (3) Collect the signed and completed forms for filing. (4) Inform the customer of other specified property tax deductions by providing the customer with a form prescribed by the DLGF that describes the deductions. Requires the closing agent to file the signed forms with the appropriate county auditor. For a residential mortgage transaction that closes after December 31, 2009, requires a closing agent to input and submit the following information to the appropriate data bases maintained by the DLGF, as applicable: (1) Information to enable the customer to obtain the mortgage deduction and the homestead credit. (2) Sales disclosure form data. (4) The names and license, certificate, or registration numbers of specified professionals involved in the transaction. Specifies that evidence of compliance with the licensing and registration requirements for loan brokers, originators, and principal managers shall include a national criminal history background check by the Federal Bureau of Investigation (FBI). Specifies that the securities commissioner (commissioner) shall require each: (1) equitable owner of a loan brokerage business; (2) director, manager, or officer of an applicant for licensure as a loan broker; and (3) applicant for registration as an originator or a principal manager; to submit fingerprints for a national criminal history background check by the FBI. Prohibits the commissioner from releasing the results of a national criminal history background check to a private entity. Allows the commissioner to designate a multistate automated licensing system and repository (system) as the sole entity responsible for processing applications for: (1) licenses for loan brokers; and (2) certificates of registration for originators and principal managers. Increases the amount of the bond that a licensed loan broker must maintain with the commissioner from $50,000 to $100,000. Eliminates the exemption from the loan broker statute for persons authorized to make loans on behalf of, or insured by, certain federal agencies. Specifies that a loan broker is subject to the state statute requiring disclosure of a breach of the security of any records: (1) maintained by the broker; and (2) containing the personal information of a borrower or prospective borrower. Prohibits loan brokers, originators, and principal managers from disposing of unencrypted, unredacted personal information with respect to borrowers or prospective borrowers without first taking certain actions to render the personal information illegible or unusable. Prohibits a person from performing specified acts in connection with a contract for the services of a loan broker. Provides that first lien mortgage transactions are subject to regulation under the Uniform Consumer Credit Code (UCCC). Requires a creditor, a mortgage servicer, or an agent of a creditor to acknowledge a written offer made in connection with a proposed short sale of property that is subject to a mortgage that is at least 10 days delinquent. Provides that the acknowledgment must be provided not later than 10 business days after the date of the offer. Requires the creditor, servicer, or agent to accept or reject the short sale offer not later than 20 business days after receipt of the offer. For an adjustable rate mortgage, requires a creditor to provide a one page disclosure document that provides the following information: (1) The mortgage transaction’s fully indexed rate. (2) The maximum monthly payment that could be required under the terms of the mortgage transaction, including amounts owed for taxes and insurance, if the creditor will establish an escrow account for taxes and insurance. Provides that a creditor is not liable to the debtor or any other person if the estimate of monthly taxes and insurance provided in the disclosure document differs from the actual taxes and insurance owed at any time during the mortgage. Specifies that a violation of the home loan practices act is a deceptive act subject to action by the attorney general. For a deceptive act involving home loan practices, increases: (1) the damages that may be awarded to an aggrieved consumer; and (2) the amount of the civil penalties that may be imposed on a violator. Provides that any civil penalties collected by the attorney general shall be deposited in the home owner protection unit account in the general fund. Prohibits a creditor from recommending or issuing to a prospective borrower: (1) a stated income or no documentation loan; or (2) a home loan if the creditor does not first conduct a reasonable inquiry into the prospective borrower’s creditworthiness. Provides that if a creditor conducts a reasonable inquiry, the creditor is not liable if the borrower later defaults on a home loan issued by the creditor. Requires settlement service providers to make closing documents available to borrowers at least 48 hours before the closing. Provides that if terms of the home loan set forth in the documents provided differ from the terms presented to the borrower at the time of closing, the borrower is entitled to delay or reschedule the closing without penalty and without forfeiting the right to enter into the loan or the purchase contract. Increases the statutory damages that may be recovered by a person aggrieved by a violation of the home loan practices act (act) from: (1) two times; to (2) four times; the amount of the finance charges under the contract. Enhances the crime involving a knowing or intentional violation of the act from a Class A misdemeanor to a Class D felony. Increases the civil penalty for the violation of: (1) the act; or (2) an injunction issued to enjoin a violation of the act; from $10,000 to $20,000. Requires the real estate appraiser licensure and certification board to require each initial applicant for licensure or certification as a real estate appraiser to submit fingerprints for a national criminal history background check by the FBI. Prohibits the board from releasing the results of a national criminal history background check to a private entity. Requires various state agencies to form the mortgage lending and fraud prevention task force to coordinate the state’s efforts to: (1) regulate the various participants involved in originating, issuing, and closing home loans; (2) enforce state laws and rules concerning mortgage lending practices and mortgage fraud; and (3) prevent fraudulent practices in the home loan industry and investigate and prosecute cases involving mortgage fraud. Requires the Indiana housing and community development authority to provide, not later than November 1, 2008, a report to the legislative council that includes the following: (1) An identification of new and existing funding sources that can be used to assist Indiana homeowners in refinancing their existing mortgage transactions, in order to prevent the foreclosure of the homes secured by the mortgages. (2) A plan for the rehabilitation of areas in Indiana that have been adversely or disproportionately affected by mortgage foreclosures. Requires the securities commissioner and the director of the department of financial institutions to cooperate to determine the appropriate state agency or department to regulate a person subject to regulation, licensure, or registration under both the loan broker statute and the UCCC. Repeals provisions that exclude mortgage transactions from the UCCC. Beginning with the school year that begins in 2010, requires school corporations and accredited nonpublic schools to include in their curricula for grades 9 through 12 instruction designed to: (1) increase students’ awareness of consumer transactions, including mortgage transactions; and (2) foster personal financial responsibility. Provides that a school corporation or an accredited nonpublic school may provide the instruction by integrating it into its mathematics curriculum. Requires the department of education and the department of financial institutions to develop guidelines to assist teachers assigned to provide the instruction.
S.B. 89
Passed Senate 1/24/08
Requires the homeowner protection unit (unit) within the attorney general’s office to establish a toll free telephone number to receive calls from persons having information about suspected fraudulent transactions and practices concerning residential real estate transactions. Requires the unit to share information reported by callers to the telephone number with appropriate law enforcement and regulatory agencies. Allows the Indiana housing and community development authority (authority) to make or participate in the making of: (1) construction loans; and (2) mortgage loans; for multiple family residential housing under terms approved by the authority. Requires the authority to ensure that a mortgage loan: (1) acquired by the authority; or (2) made by a mortgage lender with funds provided by the authority; may not know knowingly be made to a person whose adjusted family income exceeds 125% of the median income for the geographic area involved. For purposes of allocating federal low income housing credits, provides that a “qualified building” is a building that is used or will be used to provide residential housing for special needs populations. (Current law provides that a “qualified building” is a building that is used or will be used to provide residential housing for persons with disabilities.) Provides that the authority’s authority to issue bonds is subject to the approval of the public finance director. (Current law provides that the authority’s bonding authority is subject to the approval of the governor.) Repeals provisions concerning job and contract awarding preferences for the authority’s program for making or participating in the making of mortgage loans for multiple family residential housing. Repeals provisions concerning the articles of incorporation of sponsors, builders, or developers of multiple family residential housing. Beginning with the school year that begins in 2010, requires school corporations and accredited nonpublic schools to include in their curricula for grades 9 through 12 instruction designed to: (1) increase students’ awareness of consumer transactions, including mortgage transactions; and (2) foster personal financial responsibility. Provides that a school corporation or an accredited nonpublic school may provide the instruction by integrating it into its mathematics curriculum. Requires the department of education and the department of financial institutions to develop guidelines to assist teachers assigned to provide the instruction. Increases the amount of the bond that a licensed loan broker must maintain with the commissioner from $50,000 to $100,000. Eliminates the exemption from the loan broker statute for: (1) persons authorized to make loans on behalf of, or insured by, certain federal agencies; and (2) licensed real estate brokers and salespersons who render loan related services in a real estate transaction. Specifies that evidence of compliance with the licensing and registration requirements for loan brokers, originators, and principal managers may include a national criminal history background check by the Federal Bureau of Investigation (FBI). Specifies that the securities commissioner (commissioner) shall require each: (1) equitable owner of a loan brokerage business; and (2) applicant for registration as an originator or a principal manager; to submit fingerprints for a national criminal history background check by the FBI. Prohibits the commissioner from releasing the results of a national criminal history background check to a private entity. Allows the commissioner to designate a multistate automated licensing system and repository (system) as the sole entity responsible for processing applications for: (1) licenses for loan brokers; and (2) certificates of registration for originators and principal managers. Allows the commissioner to check the qualifications and background of each: (1) equitable owner of a loan brokerage business; and (2) applicant for registration as an originator or a principal manager; by accessing the system. Specifies that a loan broker is subject to the state statute requiring disclosure of a breach of the security of any records: (1) maintained by the broker; and (2) containing the personal information of a borrower or prospective borrower. Prohibits loan brokers, originators, and principal managers from disposing of unencrypted, unredacted personal information with respect to borrowers or prospective borrowers without first taking certain actions to render the personal information illegible or unusable. Prohibits a person from performing specified acts in connection with a contract for the services of a loan broker. Provides that: (1) first lien mortgage transactions are subject to regulation by; and (2) creditors making first lien mortgage transactions must be licensed by; the department of financial institutions. Requires a creditor, a mortgage servicer, or an agent of a creditor to acknowledge a written offer made in connection with a proposed short sale of property that is subject to a mortgage transaction that is at least 10 days delinquent. Provides that the acknowledgment must be provided not later than 10 business days after the date of the offer. Requires the creditor, servicer, or agent to accept or reject the short sale offer not later than 20 business days after receipt of the offer. Requires the department of insurance to establish an electronic system for the collection and storage of the: (1) names; and (2) license, registration, or certificate numbers; of certain professionals that participate in or assist with residential mortgage transactions. Provides that the system must allow closing agents to: (1) input the required information with respect to each professional involved in the transaction; and (2) submit the form electronically to a data base maintained by the department of insurance. Requires the department of insurance to make the data base accessible to: (1) the state agencies responsible for regulating the specified professionals; and (2) the homeowner protection unit in the attorney general’s office. Specifies that a violation of the home loan practices act is a deceptive act subject to action by the attorney general. For a deceptive act involving home loan practices, increases: (1) the damages that may be awarded to an aggrieved consumer; and (2) the amount of the civil penalties that may be imposed on a violator. Provides that any civil penalties collected by the attorney general shall be deposited in the home owner protection unit account in the general fund. Prohibits a creditor from recommending or issuing to a prospective borrower: (1) a stated income or no documentation loan; or (2) a home loan if the creditor does not first conduct a reasonable inquiry concerning the prospective borrower’s ability to repay the loan. Provides that if a creditor conducts a reasonable inquiry, the creditor is not liable if the borrower later defaults on a home loan issued by the creditor. Requires a settlement service provider to make closing documents available to a borrower at least 48 hours before the closing, subject to the settlement service provider’s ability to obtain the closing documents from the creditor making the home loan, after the settlement service provider’s good faith effort to obtain the closing documents from the creditor. Provides that if: (1) the borrower does not receive the closing documents within the time required; or (2) the terms of the home loan set forth in the documents provided differ from the terms presented to the borrower at the time of closing; the borrower is entitled to delay or reschedule the closing without penalty and without forfeiting the right to enter into the loan or the purchase contract. Increases the statutory damages that may be recovered by a person aggrieved by a violation of the home loan practices act (act) from: (1) two times; to (2) four times; the amount of the finance charges under the contract. Enhances the crime involving a knowing or intentional violation of the act from a Class A misdemeanor to a Class D felony. Increases the civil penalty for the violation of: (1) the act; or (2) an injunction issued to enjoin a violation of the act; from $10,000 to $20,000. Requires the real estate appraiser licensure and certification board to require each initial applicant for licensure or certification as a real estate appraiser to submit fingerprints for a national criminal history background check by the FBI. Prohibits the board from releasing the results of a national criminal history background check to a private entity. Requires various state agencies to form the mortgage lending and fraud prevention task force to coordinate the state’s efforts to: (1) regulate the various participants involved in originating, issuing, and closing home loans; (2) enforce state laws and rules concerning mortgage lending practices and mortgage fraud; and (3) prevent fraudulent practices in the home loan industry and investigate and prosecute cases involving mortgage fraud. Requires the Indiana housing and community development authority to provide, not later than November 1, 2008, a report to the legislative council that includes the following: (1) An identification of new and existing funding sources that can be used to assist Indiana homeowners in refinancing their existing mortgage transactions, in order to prevent the foreclosure of the homes secured by the mortgages. (2) A plan for the rehabilitation of areas in Indiana that have been adversely or disproportionately affected by mortgage foreclosures. Requires the securities commissioner and the director of the department of financial institutions to cooperate to determine the appropriate state agency or department to regulate a person subject to regulation, licensure, or registration under both the loan broker statute and the UCCC. Makes technical changes.
S.B. 186
Provides that in a foreclosure proceeding involving property that includes one or more residential rental units, the mortgagee shall, at the time that a judgment or decree of sale is entered in the proceeding, provide written notice of the judgment or decree to each tenant who occupies the property under a rental agreement. Specifies that the notice must include a statement of the tenant’s: (1) right to terminate the rental agreement; and (2) obligation to pay any outstanding rent upon termination. Provides that a tenant who occupies a rental unit that is subject to a foreclosure proceeding may, upon learning of a judgment or decree of sale in the proceeding, terminate the rental agreement by providing written notice to the landlord of the tenant’s intention to terminate the rental agreement on a date that is: (1) specified by the tenant in the notice; and (2) at least ten days after the date of the tenant’s notice. Provides that upon termination of a rental agreement, the tenant is liable for rent that may be due under the rental agreement, in an amount that is prorated to the effective date of the termination. Provides that the tenant is not liable for any other rent or damages due solely because of the early termination of the rental agreement.
S.B. 275
Provides that for an adjustable rate home loan that is closed after June 30, 2008, the creditor may not charge the borrower prepayment fees or penalties that are due and payable after the earlier of: (1) one year after the date of the closing of the loan; or (2) 60 days before the first scheduled adjustment of the loan’s rate. Provides that a person may not do either of the following unless the person is licensed in Indiana as a real estate broker or salesperson: (1) Conduct an open house in a home that is listed for sale in Indiana. (2) Conduct an open house or show a model home in a neighborhood or subdivision in which similar homes are or will be listed for sale in Indiana. For a mortgage foreclosure proceeding initiated after June 30, 2008, requires: (1) the clerk of the court to certify to the sheriff a copy of the judgment or decree not later than five business days after the praecipe is filed; and (2) the sheriff to conduct a sale of the property not later than 90 days after receipt of the judgment or decree.
S.C.R. 33
Urges the United States Congress to impose a moratorium on home foreclosures and to establish a homeowners and bank protection act.
S.C.R. 49
Urges the United States Congress to impose a moratorium on home foreclosures and to establish a homeowners and bank protection act.
 Iowa H.F. 2607
H.S.B. 767
Became H.F. 2607 3/13/08
Specifies that, in regard to mortgage foreclosure deficiency judgments, a judgment in an action for theforeclosure of a real estate mortgage, deed of trust, or real estate contract upon property which at the time theforeclosure is commenced is either used for an agricultural purpose or a one-family or two-family dwelling which is the residence of the mortgagor, or in any action on a claim for rent, shall be null and void, all liens shall be extinguished, and no execution shall be issued for any purpose other than as a setoff or counterclaim after the expiration of two years from the date of entry of judgment. The bill provides that a judgment entered on a promissory obligation secured by a mortgage, deed of trust, or real estate contract upon property which at the time of either the judgment or the commencement of a foreclosure proceeding of a prior mortgage is either used for an agricultural purpose as defined in Code §535.13 or a one-family or two-family dwelling which is the residence of the mortgagor, but without foreclosure against the security, shall not be subject to renewal by action thereon, and, after the lapse of two years from the date of rescission, shall be without force and effect for any purpose whatsoever except as a setoff or counterclaim. The bill eliminates the requirement that written consent ofa mortgagor must be obtained prior to utilizing the rescission procedure in a foreclosure action pursuant to Code §654.17. The bill also provides that in a rescission of foreclosure proceeding, the mortgagee shall not be subject to a deficiency judgment if the judgment upon which the rescission was based was subject to the provisions of Code §615.1. The bill specifies that the nonjudicial foreclosure process specified in Code chapter 655A does not apply to a situation where a one-family or two-family dwelling is occupied by either a legal or equitable titleholder.
S.S.B. 3249
Provides for the regulation of mortgage foreclosure consultant contracts and mortgage foreclosure reconveyance transactions.
 Kentucky H.B. 72
Creates a new section of Subtitle 1 of KRS Chapter 286 to authorize the Office of Financial Institutions to provide free mortgage foreclosure counseling and education to homeowners who have defaulted or are in danger of defaulting on the mortgages on their homes; requires the office to work with the Kentucky Housing Corporation if it determines to establish such a program; provides that the program may include a toll-free telephone number homeowners may call to receive mortgage foreclosure counseling and education; permits the office to establish standards for certification of counselors; permits the office to establish in the State Treasury a fund known as the “Mortgage Foreclosure Counseling and Education Trust Fund”; permits the fund to receive from the county clerk a surcharge for recording and indexing of real estate mortgages; amends KRS 64.012 to establish a surcharge of $1.50 to be added to the fee for recording and indexing real estate mortgages, which shall be payable to the mortgage foreclosure counseling and education trust fund; permit the surcharge to be imposed only if the foreclosure counseling and education program is operational.
H.B. 555
Amends KRS 141.010 to recognize the Mortgage Forgiveness Debt Relief Act; apply to tax years 2007 and later.
H.R. 69
Urges the United States Congress to enact a Homeowners and Bank Protection Act.
S.B. 41
Creates a new section of KRS Chapter 198A to establish the Kentucky Homeownership Protection Center; specifies the purpose of the center is, among other things, to provide a centralized location for information on, and referral to, public services available to assist a homeowner who is in default on his or her loan; requires the center to provide a toll-free telephone number through which a homeowner in financial distress can receive information on the center and its services, a list of counseling agencies, a list of available community resources, staff who can provide a brief assessment of the situation of the homeowner, and applications for public assistance or benefits programs; creates new sections of Subtitle 2 of KRS Chapter 286 to require a mortgagee, at the time of closing, to provide to the homeowner a plain language statement which includes a counseling statement, a listing of at least five housing counseling agencies, a list of toll-free telephone numbers for certain programs, contact information for the Kentucky Homeownership Protection Center, and a brief summary of the obligation of the mortgagee to engage in reasonable loss mitigation activities as an alternative to foreclosure; requires the mortgagee, at the time of closing, to explain in writing and verbally that the homeowner’s name and contact information will be registered with the Kentucky Homeownership Protection Center so the center can contact a homeowner who is 60 days or more late making any mortgage payment; requires the mortgagee to notify the center of any homeowner 60 days or more late on payment; provides for notice to be given if the homeowner fails to pay any amount within 30 days or 60 days of the date the amount is due; specifies what is required in the notice; requires a mortgagee to engage in reasonable loss mitigation activities as an alternative to foreclosure upon default of a federally related mortgage loan.
 Maryland H.B. 58
Provides that a homeowner of a residence in foreclosure has the right to rescind a contract for the sale of the residence in foreclosure within three business days after the date the sales contract is executed; provides for the form and transmittal of the notice of rescission; requires a homeowner to repay funds paid or advanced by the purchaser under specified circumstances; provides that specified provisions in a sales contract are void.
H.B. 59
Alters the contents of a foreclosure consulting contract to include a statement regarding the duty of a foreclosure consultant to provide a homeowner with research regarding the value of a homeowner’s residence in foreclosure; and imposes a duty on a foreclosure consultant to provide a homeowner with written copies of any research the foreclosure consultant has regarding the value of the homeowner’s residence in foreclosure.
H.B. 67
Requires a written notice of foreclosure sale to contain a specified statement; requires a specified person, within one business day after receiving a request from the record owner of residential real property, to inform the record owner of what actions must be taken to reinstate the record owner’s mortgage loan; provides that a record owner of residential real property may reinstate a mortgage loan at any time before the start of bidding at the foreclosure sale.
H.B. 778
Passed House 3/21/08
Prohibits a record owner’s right to appeal a final judgment of the circuit court in a specified foreclosure action from being conditioned on the posting of a supersedeas bond in an amount exceeding the past due monthly payments under the mortgage loan, any late fees, and future monthly interest due during the appeal; prohibits a record owner’s appeal from being dismissed under specified circumstances.
H.B. 1035
S.B. 532
Prohibits a creditor from maintaining suit in an action to foreclose a deceptive subprime mortgage on residential real property in Prince George’s County; establishes that a creditor may be liable for specified damages if the creditor fails to show to the satisfaction of the court that the mortgage is not a deceptive subprime mortgage.
H.B. 1398
S.B. 535
Prohibits a creditor from maintaining suit in an action to foreclose a mortgage entered into by a homeowner unless the creditor shows to the satisfaction of the court that the mortgage is not a deceptive subprime mortgage; provides that a creditor may be liable for specified damages if the creditor fails to make the showing.
H.B. 1477
Withdrawn from consideration 3/22/08
Provides that, in Prince George’s County, a record owner of residential real property may raise specified defenses in an action to foreclose a mortgage or deed of trust; provides that a record owner of residential real property is entitled to conduct specified discovery in an action to foreclose a mortgage or deed of trust; provides that discovery in an action to foreclose a mortgage or deed of trust shall be completed within a specified time.
H.J.R. 1
Withdrawn from consideration 3/14/08
Urges the United States Congress to enact legislation that establishes a federal agency authorized to take specified actions with respect to existing mortgages and speculative debt obligations, declares a moratorium on home foreclosures, and authorizes the governors of the several states to assume the administrative responsibilities of implementing the program created by the legislation.
S.B. 17
Alters the times by which specified notices of foreclosure are required to be sent to a record owner.
S.B. 389
Provides that, in specified foreclosure actions, the court may only approve a trustee commission and attorney’s fees that the court finds reasonable after considering specified factors; prohibits the court from approving a trustee commission exceeding $500 or attorney’s fees exceeding $800.
 Massachusetts H.B. 1237
Creates the Massachusetts Homeownership Protection Program and foreclosure prevention fu

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