2008 Enacted Foreclosure Legislation

 Alabama

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.

S.B. 231
Signed by governor 6/6/08, Chapter 60
Allows the Alaska Housing Finance Corporation to provide financial assistance to prevent homelessness, including prevention of foreclosures and evictions.

H.B. 2104
Signed by governor 4/28/08, Chapter 94
Conforms Arizona tax statutes to the 2008 Internal Revenue Code (IRC). Modifies the definition of the IRC for tax year 2008 to the federal IRC in effect on January 1, 2008. This includes changes adopted by Congress, specifically the 2007 Small Business and Work Opportunity Tax Act, Energy Independence and Security Act, Mortgage Forgiveness Debt Relief Act and Technical Corrections Act.

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. 1073
Passed Senate 2/19/08
Conforms Arizona tax statutes to the 2008 Internal Revenue Code (IRC). Modifies the definition of the IRC for tax year 2008 to the federal IRC in effect on January 1, 2008. This includes changes adopted by Congress, specifically the 2007 Small Business and Work Opportunity Tax Act, Energy Independence and Security Act, Mortgage Forgiveness Debt Relief Act and Technical Corrections Act.

S.B. 1349
Creates the Arizona Home Equity Theft Prevention Act.

A.B. 180
Signed by governor 9/25/08, Chapter 278

Existing law prohibits a foreclosure consultant from entering into an agreement to assist the owner in arranging, or arrange for the owner, the release of surplus funds prior to 65 days after the trustee's sale is conducted. This bill, instead, prohibits a foreclosure consultant from entering into an agreement described at any time. 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 specified other languages, and makes a conforming change in this regard. 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 of $100,000. A violation of these provisions would be a crime. The bill would permit the Department of Justice to refuse to issue, or to revoke, a foreclosure consultant's registration for any violation of the law regulating foreclosure consultants. The bill creates the Foreclosure Consultant Regulation Fund in the State Treasury for the deposit of fees submitted to the Department of Justice for registration as a foreclosure consultant, and available to the department upon appropriation by the Legislature for the costs of administering the registration program.

A.B. 1333
Vetoed by governor 9/25/08
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. 1833
Authorizes a redevelopment agency to expend money from the Low and Moderate Income Housing Fund to purchase homes that are in foreclosure and are owned by persons of low or moderate income residing within its jurisdiction. The bill requires that funds be expended pursuant to these provisions in a manner that preserves the exemption from federal and state income taxes of interest on the bonds or notes issued by the agency under the Community Redevelopment Law. Requires the Department of Housing and Community Development, to the extent allowed under the act, to require a recipient of a loan or grant under the act to implement any program or project funded under the loan or grant by purchasing and making available, to the maximum extent feasible, housing that has been rehabilitated, has been the subject of foreclosure, or is at immediate risk of foreclosure.

A.B. 1918
Provides further conformity to federal income tax laws by conforming to specified provisions of the federal Mortgage Forgiveness Debt Relief Act of 2007, relating to the exclusion of the discharge of qualified principal residence indebtedness, as defined, from a taxpayer's income if that debt is discharged after January 1, 2007, and before January 1, 2009, as provided.

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

Vetoed by governor 9/25/08
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. 1055
Signed by governor 9/25/08, Chapter 282
Provides further conformity to federal income tax laws by conforming to specified provisions of the federal Mortgage Forgiveness Debt Relief Act of 2007, relating to the exclusion of the discharge of qualified principal residence indebtedness, as defined, from a taxpayer's income if that debt is discharged after January 1, 2007, and before January 1, 2009, as provided.

S.B. 1137
Signed by governor 7/8/08, Chapter 69
Until January 1, 2013, and as applied to residential mortgage loans made from January 1, 2003, to December 31, 2007, inclusive, that are for owner-occupied residences, this bill, among other things, requires a mortgagee, trustee, beneficiary, or authorized agent to wait 30 days after contact is made with the borrower, or 30 days after satisfying due diligence requirements to contact the borrower, as specified, before filing a notice of default. The bill requires contact with the borrower, as defined, in order to assess the borrower's financial situation and explore options for the borrower to avoid foreclosure. The bill requires the mortgagee, beneficiary, or authorized agent to advise the borrower that he or she has the right to request a subsequent meeting within 14 days, and to provide the borrower the toll-free telephone number made available by the United States Department of Housing and Urban Development (HUD) to find a HUD-certified housing counseling agency. The bill requires the notice of default to include a specified declaration from the mortgagee, beneficiary, or authorized agent regarding its contact with the borrower or that the borrower has surrendered the property. If a notice of default had already been filed prior to the enactment of this act, the bill instead requires the mortgagee, trustee, beneficiary, or authorized agent, as part of the notice of sale, to include a specified declaration regarding contact with the borrower. The bill authorizes a borrower to designate a HUD-certified housing counseling agency, attorney, or other advisor to discuss with the mortgagee, beneficiary, or authorized agent, on the borrower's behalf, options for the borrower to avoid foreclosure. The contact and meeting requirements of these provisions would not apply if a borrower has surrendered the property or the borrower has contracted with an organization, as specified. The bill also requires specified mailings to the resident of a property that is the subject of a notice of sale, as specified. In addition, the bill makes it a crime to tear down the notice of sale posted on a property within 72 hours of posting. 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. Until January 1, 2013, this bill gives a tenant or subtenant in possession of a rental housing unit at the time the property is sold in foreclosure, 60 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.

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.

H.B. 1402
Signed by governor 6/5/08, Chapter 440
In residential foreclosures filed on or after August 1, 2008, requires a commercial lender to give the borrower a written notice, at least 30 days after the borrower's default and at least 30 days before filing its notice of election and demand, containing contact information for the Colorado foreclosure hotline and the lender's loss mitigation representative. Creates the Foreclosure Prevention Grant Fund, to be administered by the Division of Housing in the Department of Local Affairs (division), for the purpose of providing outreach and notice of foreclosure prevention assistance to persons in danger of foreclosure and communities with high foreclosure rates. Directs the division to solicit gifts, grants, and donations to the fund and to develop criteria for the award of grants to qualified local organizations to carry out these outreach efforts. Gives supervisory responsibility over the grant program to the state housing board. Requires the division to report annually to the General Assembly on its activities and the receipts and expenditures from the fund. Appropriates $100,000 from the general fund to the foreclosure prevention grant fund, and from the foreclosure prevention grant fund to the department of local affairs for allocation to the division, for purposes of the act.

H.R. 1009
Adopted 4/16/08
Concerns the promotion of foreclosure counseling for homeowners in Colorado.

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. 5577
Signed by governor 6/12/08, Public Act 176
Creates three mortgage assistance programs and establishes a 10-member mortgage assistance program committee to develop standards for and procedures to implement them within the Department of Economic and Community Development (DECD). The programs must be funded by state bonding and loan repayments under the programs. The governor, House speaker, Senate president pro tempore, House and Senate majority and minority leaders, the banking commissioner and the Banks Committee chairpersons must each appoint one member to the mortgage assistance program committee. The committee must elect a chair from among its members. The committee must develop written standards that, at a minimum, establish (1) the standards for qualifying mortgages and mortgagors for the emergency mortgage assistance programs; (2) the scope and nature of the emergency assistance available; and (3) the terms and conditions under which DECD will provide, and be repaid for the assistance provided under the programs. The committee must also develop an application for relief and procedures for the committee's determination of eligibility. The standards and procedures the committee will develop must be adopted in regulations by DECD by October 1, 2008. For all loans, the bill establishes a fiduciary duty from all lenders and mortgage brokers to borrowers. The bill prohibits the financing of insurance and refinancing that do not benefit the borrower. It requires mortgage professionals to use reasonable care, requires disclosures with regard to yield spread premiums, and prohibits the influencing of real estate appraisals. It also prescribes on-line continuing education for mortgage lending professionals and increases mortgage broker surety bonds. The bill also allows the banking commissioner to impose a case-by-case foreclosure moratorium of up to six months. The bill defines "nonprime loans." For nonprime loans, it establishes a specific fiduciary duty. It prohibits certain provisions in a nonprime loan, such as prepayment penalties and interest rate increases after default. It also prohibits the making of these loans unless the borrower is properly qualified and takes a course, funds are escrowed, and a specific notice is provided. For all of these lending provisions, the bill defines a "mortgage broker" as a Department of Banking (DOB)-licensed person who, for a fee, commission, or other valuable consideration, negotiates, solicits, arranges, places, or finds a mortgage, or his successors or assigns. It defines a "lender" as any DOB-licensed person or entity originating a mortgage, or its successors or assigns.

H.B. 5578
Signed by governor 5/12/08, Public Act 58
Extends the law on mortgage payoff statements to reinstatement payment statements. It defines a "reinstatement payment statement" as one that provides the total amount owed that a borrower can pay to cause the loan to be reinstated, provided any other contractual conditions for reinstatement are satisfied. Specifically, the bill requires a lender to, upon written request, provide a reinstatement payment statement in writing to the borrower or borrower's authorized agent by the date noted in the request as long as that date is at least seven business days after the request is received. The bill also shortens the deadline for payoff statements from 10 business days to seven. The borrower's attorney can make the request to the lender if it relates to a default, as long as the request represents that the person is an attorney authorized to do so by the lender.

H.B. 5579
Failed Joint Favorable deadline 3/6/08
Establishes a program of grants and loans to community residential facilities to purchase foreclosed residential properties for use as community residential facilities.

H.B. 5623
Signed by governor 4/29/08, Public Act 22
Allows recipients of Temporary Family Assistance (TFA) or State Supplemental benefits who are foreclosure defendants to be eligible for Department of Social Service (DSS) emergency housing benefits when a foreclosure judgment is entered, rather than when the property owner's right to redeem has expired.

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.

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
Signed by governor 8/21/08, Chapter 419
Regulates foreclosure consultants and foreclosure reconveyances in order to protect homeowners from foreclosure rescue schemes that deplete the homeowner’s equity.

S.R. 17
Adopted 6/10/08
Creates a Delaware Mortgage Foreclosure Task Force, which is charged with studying and making recommendations to address the escalating problems associated with mortgage foreclosures in Delaware.

B17-0101
Approved 4/4/08, Law 17-0087
Prohibits equity stripping through unscrupulous real property transactions and protects financially distressed homeowners.

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.

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. 643
Signed by governor 5/28/08, Chapter 79

S.B. 992
Laid on table 4/30/08
Provides legislative findings and intent relating to need to protect homeowners who enter into agreements designed to save homes from foreclosure; prohibits foreclosure consultants from engaging in specified acts or failing to perform contracted services; requires all agreements for foreclosure-related services and foreclosure-rescue services to be in writing; specifies required information in written agreements.

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.

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.

S.B. 531
Signed by governor 5/13/08, Act 576
Relates to foreclosure on mortgages, conveyances to secure debt, and liens, so as to require a foreclosure to be conducted by the current owner or holder of the mortgage, as reflected by public records; provides for the identity of the secured creditor to be included in the advertisement and in court records; changes the requirement for mailing or delivery of notice to debtor for sales made under the power of sale in a mortgage, security deed, or other lien contract; provides for the content of such notice.

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. 2326
Signed by governor 6/3/08, Act 137
Requires mortgage foreclosure rescuers to provide specific information and disclosures to distressed property owners and imposes specific prohibitions on mortgage foreclosure rescuers.

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.

S.B. 2454
Signed by governor 6/3/08, Act 138
Amends the mortgage foreclosures law to ensure that consumers and others receive important information regarding a foreclosure in a timely manner.

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.

S.B. 1431
Signed by governor 3/18/08, Chapter 192
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.

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
Signed by governor 8/14/08, Public Act95-0826
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
Signed by governor 8/15/08, Public Act 95-0834
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
Governor's amendatory veto overridden 9/25/08, Public Act 95-0961
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
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
Signed by governor 8/26/08, Public Act 95-0933
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.

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. 62
Signed by governor 3/21/08, Public Law 100
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.

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.

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 the foreclosure of a real estate mortgage, deed of trust, or real estate contract upon property which at the time the foreclosure 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 of a 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.

H.F. 2653
Signed by governor 4/25/08, Chapter 1125

H.S.B. 747
Became H.F. 2653 3/13/08
Provides for the regulation of mortgage foreclosure consultant contracts and mortgage foreclosure reconveyance transactions.

S.S.B. 3249
Provides for the regulation of mortgage foreclosure consultant contracts and mortgage foreclosure reconveyance transactions.

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. 552
Signed by governor 4/24/08, Chapter 175
Creates a new section of KRS Chapter 198A to permit the Kentucky Homeownership Protection Center to be established by or through the Kentucky Housing Corporation; declares the purpose of the center to be providing a centralized location for information on public services to assist a homeowner who is in default or in danger of default on a home loan; creates a new section of Subtitle 2 of KRS Chapter 286 to require the mortgagee to provide to the homeowner at the time of closing any brochure, pamphlet, or brief document prepared or approved by the Kentucky Housing Corporation that describes services provided by the center; creates a new section of Subtitle 2 of KRS Chapter 286 to declare it is unlawful for a person in the course of a mortgage transaction to improperly influence the development, report, result, or review of a real estate appraisal in connection with a mortgage loan; amends KRS 286.8-010 to define terms; amends KRS 286.8-020 to clarify who is subject to the subtitle; establishes procedure for any mortgage loan company, loan broker, or branch to apply for an exemption; amends KRS 286.8-030 to specify when it is unlawful to make a mortgage loan; amends KRS 286.8-032 to permit the executive director to require electronic filing of applications and fees; exempts a broker from the educational training course required of applicants if the broker has held a license for at least one year and has held a license within a five year period prior to filing the application; requires a broker-applicant to establish that the district, state, or territory from which the applicant applies, resides, or performs the primary portion of his business has rules, regulations, or other provisions which by reciprocity or comity are at least equal to the ones in this section; requires a mortgage loan company or broker to give at least 10 days' notice to the executive director of a change in location or business name or addition of a branch; require every mortgage loan company to maintain an agent for service of process in Kentucky; amends KRS 286.8-034 to increase license fees for each principal office and branch office; amends KRS 286.8-090 to create new actions for which the executive director may suspend or revoke a license or take other action against an applicant, licensee, person, or registrant; declares that surrender or expiration of a license, registration, or exemption shall not affect the licensee's civil or criminal liability for acts committed prior to the surrender or expiration; amends KRS 286.8-100 to allow the executive director to deem an application abandoned when it is received incomplete and the applicant fails to provide required information and fees or fails to respond to a request for information; amends KRS 286.8-110 to prohibit prepayment penalties after the third anniversary of the mortgage or after 60 days prior to the date of the first interest rate reset, whichever is less; restricts prepayment penalties to not more than three percent of the outstanding balance the first year, two percent the second year, and one percent the third year; amends KRS 286.8-140 to permit the executive director to require electronic filing of certain filings and fees; amends KRS 286.8-160 to require mortgage loan companies and brokers to keep records for a period determined by regulation by the executive director but no more than five years after a mortgage loan application is completed; permits preservation of records in an electronic retrievable format; requires a mortgage loan company or broker that will cease operations to notify the executive director prior to discontinuance of the mortgage lending business as to the physical location where records are preserved and requires the designation of a custodian of records; amends KRS 286.8-190 to make technical changes; amends KRS 286.8-220 to prohibit the use of prescreened trigger lead information derived from a consumer report to solicit a consumer who has applied for a mortgage loan with another mortgage loan company or broker under certain conditions; amends KRS 286.8-250 delete the definition of "physical location"; amends KRS 286.8-255 to require registration of mortgage loan originators and mortgage loan processors; permits the executive director to require submission of federal and state criminal background records as part of an application; designates when a certificate of registration expires; requires mortgage loan originators and mortgage loan processors to notify the executive director in writing of a change of employment within 30 days of the change; amends KRS 286.8-260 to require the executive director to approve professional education courses and education providers to meet the continuing professional education requirements; amends KRS 286.8-270 to require the mortgage loan broker to act in good faith towards the borrower and comply with certain duties; amends KRS 286.8-990 to create the Kentucky Residential Mortgage Fraud Act; increase fines that may be imposed by courts for violations of this subtitle; amends KRS 286.8-060 to require surety bonds to be payable to the executive director and provide that bonds shall be available for recovery of expenses, fines, and fees levied by the executive director and for losses and damages; creates new sections of Subtitle 8 of KRS Chapter 286 to create the mortgage lending fraud prosecution account; allows expenditures from the fund for criminal prosecution of fraudulent activities within the residential mortgage lending process; authorizes the executive director to file administrative complaints for potential or actual violations of this subtitle; permits the executive director to levy a civil penalty of $1,000 to $25,000 for violation of any provision of this subtitle or any administrative regulation promulgated thereunder; declares it unlawful for a licensee or entity holding a claim of exemption to broker or fund a mortgage loan if the total net income generated on the loan exceeds $2,000 or four percent of the total loan amount, whichever is greater; authorizes the executive director to establish standards and requirements by administrative regulation for license testing, prelicensure education and continuing education requirements for mortgage professionals subject to testing and education requirements under this subtitle; requires any person applying for a license, registration, or claim of exemption to pass a written examination prior to issuance of a license, registration, or claim of exemption; requires an examination to be held at least weekly in Frankfort and permit an examination to be held on a monthly basis at a location in Kentucky designated by the executive director which is reasonably accessible to all applicants; requires the executive director to bar an applicant for two years from taking the examination if the applicant fails to pass three consecutive times; authorizes the executive director to enter an emergency order suspending, limiting, or restricting the license, claim of exemption, or registration of a mortgage loan company, broker, originator, or processor; amends KRS 360.100 to delete the minimum principal amount of a high-cost home loan; establishes an additional threshold of total points and fees that exceed the greater of $2,000 or four percent of the total loan amount; defines terms; prohibits a high-cost home loan lender from imposing prepayment penalties unless the lender offers the borrower a loan without prepayment penalties and the borrower initials the offer to indicate that the borrower rejected the offer; prohibits prepayment penalties of more than three percent the first 12 months, two percent the second 12 months, and one percent the third 12 months; establishes criteria which means a borrower is presumed to be able to make scheduled payments to repay the loan; requires loan documents to specifically authorize late payment fees if such fees are to be imposed; prohibits a lender from charging a fee for the first request in a calendar year for a written payoff calculation and permit a fee not to exceed $20 for each subsequent request in a calendar year; requires a lender to require an escrow account be established for taxes and insurance; prohibits a lender from using proceeds to repay the principal of an existing loan secured by the borrower's principal dwelling that is not a high-cost home loan; prohibits a lender from allowing a borrower to make payments that are applied only to interest and not to the principal; requires the lender to provide a borrower with timely notice of any material change in the terms of the high-cost loan; requires the lender to verify the borrower's income and financial resources and reasonable ability to repay the loan; creates a new section of KRS Chapter 367 to establish duties of a servicer who collects or processes payments on a residential mortgage loan; amends KRS 367.420 pertaining to home solicitation sales in which security is taken in the principal dwelling of the buyer to permit the buyer to rescind or cancel the transaction until midnight of the tenth, rather than the third, business day following the later of the consummation of the loan transaction or the delivery of the material disclosures required by the Truth in Lending Act.

H.B. 555
Amends KRS 141.010 to recognize the Mortgage Forgiveness Debt Relief Act; applies 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.

S.R. 90
Adopted 4/15/08
Urge Congress to take emergency action to enact a Homeowners and Banks Protection Act. 

H.B. 134
Signed by governor 6/21/08, Act 339
Relates to the removal of mortgage inscriptions affecting property subject to judicial sale; provides for the contents and filing of an affidavit by a title insurer; provides procedures for the removal of mortgage inscriptions; provides a cause of action for improper cancellation; provides for indemnification and exemption from liability under certain circumstances.

H.B. 768
Signed by governor 7/8/08, Act 828
Provides that cancellation of a mortgage, whether legal, judicial, or conventional, shall allow any interested party to cancel the notice of seizure of property affected by the mortgage upon submitting a request to cancel evidencing that the mortgage has been canceled and upon submitting evidence that all costs due to the clerk of court and sheriff are paid in full.

S.B. 590
Became law without governor's signature 6/16/08, Act 228
Authorizes the Louisiana Housing Finance Agency (LHFA) to establish a program to provide free mortgage foreclosure counseling and education to homeowners who have defaulted or are in danger of defaulting on their home mortgages and authorizes LHFA to work the office of financial institutions (OFI). Authorizes LHFA to enter into agreements with other entities to carry out the program, establish a central toll-free telephone line, award grants for training of counselors, and establish standards for certification of such counselors. Authorizes LHFA to solicit contributions and grants from the private sector, nonprofit entities, and the federal government to assist in carrying out purposes of the program. Requires LHFA to submit an annual report to the Senate and House committees on commerce on the operation of the program.

L.D. 2189
Signed by governor 4/11/08, Chapter 596
Enacts measures designed to protect homeowners from equity stripping during foreclosures. This bill requires a business that engages in these transactions as a foreclosure purchaser to be licensed as a supervised lender before conducting business in this state and to meet other statutory requirements. Requires that a foreclosure purchaser must ensure that title is transferred back to the homeowner or that the foreclosure purchaser make a payment to the homeowner of at least 82 percent of the fair market value of the property within 150 days of when the homeowner is evicted or voluntarily gives back possession of the home. The bill requires that foreclosure purchasers verify that a foreclosed homeowner has a reasonable ability to make the payments needed to take back title to the home. The bill provides that there is a rebuttable presumption of a reasonable ability to pay if a homeowner's monthly payments for housing expenses and principal and interest payments do not exceed 60 percent of the owner's monthly gross income. The bill requires that the foreclosed homeowner receive counseling on the advisability of the transaction. Requires that the foreclosure purchaser provide a written contract and certain notices and disclosures to the homeowner. The bill gives a homeowner the right to cancel the transaction within five business days. Prohibits a foreclosure purchaser from making false, deceptive or misleading statements to homeowners and from using unfair or commercially unreasonable terms as part of foreclosure purchase transactions. The bill gives administrative enforcement authority to the Bureau of Consumer Credit Protection within the Department of Professional and Financial Regulation and imposes civil and criminal penalties for violations of the bill's provisions. The bill also gives a foreclosed homeowner the right to bring a private cause of action against a foreclosure purchaser for violations.

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. 361
Signed by governor 4/3/08, Chapter 6
S.B. 218
Signed by governor 4/3/08, Chapter 5
Alters the applicability of specified provisions relating to the protection of homeowners in foreclosure; alters the contents of a foreclosure consulting contract; prohibits a foreclosure consultant from engaging in or arranging a foreclosure rescue transaction or receiving a commission or money under specified circumstances; requires a foreclosure consultant to be licensed as a real estate broker and to provide research on the value of a home to a homeowner.

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

H.B. 1237
Creates the Massachusetts Homeownership Protection Program and foreclosure prevention fund.

H.B. 1290
Establishes a home preservation fund to preserve and promote homeownership.

H.B. 4733

Establishes a moratorium on foreclosures of certain property and provides for judicial review of all such mortgage foreclosures in the Commonwealth.

H.B. 4734
Regulates the eviction of tenants or occupants of foreclosed properties.

H.B. 4735
Requires judicial review of foreclosures on residential mortgages.

H.B. 4833
Regulates evictions on certain foreclosed residential property in the city of Boston.

S.B. 747
Creates a Home Preservation Fund; provides for a right to cure.

S.B. 2200
Provides procedural protections for homeowners facing foreclosure.

S.B. 2299
Passed Senate 7/26/07
Provides that no mortgagee shall make a subprime loan at a variable or adjustable rate of interest unless the mortgagor opts in writing for the variable or adjustable rate subprime loan and receives certification of loan counseling with a qualified third party; creates a centralized statewide foreclosure database of foreclosure activity to monitor and analyze foreclosures and foreclosure patterns at the Division of Banks; regulates licensing of mortgage loan originators and background investigation fees; criminalizes mortgage fraud in the Commonwealth.

S.B. 2662
Requires judicial foreclosure.

S.B. 2663
Relates to a temporary moratorium on foreclosures.

S.B. 2664
Requires just cause for eviction and foreclosed properties.

H.B. 4658
Signed by governor 7/15/08, Public Act 216
Removes the Michigan Housing and Community Development Fund from the Department of Treasury and establish a fund of the same name within the Michigan State Housing Development Authority (MSHDA). Allows MSHDA to solicit and accept aid from any person, government, or entity on behalf of the Fund, and to receive money or other assets from any source, including Federal funds, for deposit into the Fund. Expands the Housing and Community Development Program to include the financing of development in a downtown area or adjacent neighborhood. Includes municipalities, land bank fast track authorities, and partnerships organized to develop projects in downtown areas or adjacent neighborhoods, among applicants eligible for funding. Extends the uses of the Fund to foreclosure prevention and assistance, individual development accounts, predatory lending prevention and relief, and activities related to ending homelessness. 

H.B. 5298
Provides that if the default of a home loan is cured after the initiation of an action to foreclose the loan and before the court issues a final order of foreclosure, the creditor shall take any steps necessary to terminate the foreclosure proceeding or other action. The cure of a default of a home loan reinstates the borrower to the same position as if the default had not occurred and nullifies any acceleration of any obligation under the security instrument or note arising from the default as of the date of the cure.

H.B. 5340
Relates for foreclosure process; relates to the acceleration of the balance due under a mortgage; prohibit if foreclosure commenced within 18 months after payment default.

H.B. 5376
Creates the Michigan homeownership preservation fund in the state treasury. Fines assessed under subsection (1)(c) shall be deposited in the fund and used by the commissioner to do any of the following: (a) Award grants to finance financial literacy programs, homeownership training, and homeownership protection training. (b) Provide down payment assistance to individuals seeking home loans. (c) Provide loans and grants to low income individuals seeking to avoid foreclosure.

H.B. 5447
Passed House 12/4/07
Amend the Section 1 of the act (MCL 125.1401), which contains several legislative "determinations" related to need to provide assistance with financing purchases of existing single-family residences for low and moderate income families and assistance with financing the rehabilitation of existing residential rental properties. The bill includes in the list of legislative determinations the need to provide assistance with refinancing. The bill adds a new legislative determination that there is a pressing need for the creation of programs to assist low and moderate income individuals and families with the refinancing of single-family mortgages in order to prevent families from losing their homes and to help stabilize the housing market in the state. The bill says that "economic conditions and single-family home mortgage market standards, activities, and practices, including forms of predatory and abusive mortgage loan financing, have resulted in an increase in the incidence of mortgage loan default and mortgage foreclosure in the state" (giving rise to the need for the refinancing programs).

H.B. 5532

Provides that a rental agreement shall contain a provision that a landlord shall notify a tenant of any foreclosure actions being taken against the property at least 30 days before the property is foreclosed on.

H.B. 5566
Provides assistance to owners of distressed housing; provides a vehicle for purchase and redemption of residential property faced with foreclosure; provides for the raising of capital and the issuance of bonds; and provides for certain duties of certain state agencies.

H.B. 5857
Provides for a one-year moratorium on residential mortgage and land contract foreclosures.

H.B. 6236
Establishes a 90-day mediation program and one-year moratorium for mortgage foreclosures.

H.B. 6289
Provides for the deduction of any income derived from the cancellation of debt, or other disposition of property, related to the foreclosure of property owned by the taxpayer used in the taxpayer's regular business activity or any other transaction such as a deed in lieu of foreclosure or sale by a county-appointed receiver entered into under the threat of foreclosure.

H.B. 6477
Passed House 9/24/08
Amends the Michigan Election Law to prohibit an election challenge for those electors whose residential property is in foreclosure, without additional supporting evidence proving that the elector does not meet residence requirements.

H.B. 6482
Clarifies that certain foreclosed property retain the principal residence exemption.

H.B. 6483
Exempts certain foreclosed property from certain operating mills.

H.B. 6614
Amends the Revised Judicature Act (MCL 600.3101, 600.3208, and 600.3216) and applies to foreclosure proceedings filed after December 14, 2008 and until the discontinuation of the Michigan Home Foreclosure Prevention Program. For those proceedings in which the program would require submission of a certification, the bill requires a plaintiff to include the certification in the complaint. If the plaintiff failed to do so, or if the certification contained a materially inaccurate statement, the court could dismiss the action without prejudice and order the plaintiff to pay the costs incurred by the defendant in defending the foreclosure proceeding. The bill also requires the person publishing a notice of a sale of the mortgaged premises to include the certification in the notice. If the notice of foreclosure sale failed to include the certification, or if the certification contained a materially inaccurate statement, the person making the sale could not conduct the sale until the party attempting to foreclose by advertisement had complied with the Home Foreclosure Prevention Act.

H.B. 6615
Creates the Home Foreclosure Prevention Act to provide, in the case of a mortgage on a primary residence that secures a subprime loan, the following: Requires the commissioner of the Office of Financial and Insurance Regulation (OFIR) to establish the Michigan Home Foreclosure Prevention Program to seek solutions to avoid foreclosures for certain subprime loans. The program may provide for the mediation of foreclosure proceedings. Require a mortgage servicer to inform the borrower by mail – at least 45 days before filing a judicial foreclosure action or publishing a notice of foreclosure by advertisement – of the availability of resources to avoid foreclosure and list the information required on the notice. Requires the mortgage servicer – within three business days of mailing the above notice – to file information containing the name and address of the borrower with the State Court Administrative Office (SCAO). Requires the SCAO, by January 1, 2009, to establish an internal, non-public database to track information required by the bill. Allows the commissioner to determine whether a subprime loan was appropriate for efforts to avoid foreclosure based on criteria specified in the bill. If so, the commissioner can (1) extend the earliest date to begin foreclosure proceedings for up to 90 days, and/or (2) order the mortgage servicer and the borrower to participate in mediation. Until such time as the Michigan Home Foreclosure Prevention Program is discontinued, requires that a complaint to judicially foreclose a mortgage on a home mortgage that secures a subprime loan published after December 14, 2008 contain a certification that notice and information was provided as required above and that the filing or publication date was on or after the earliest date to begin a proceeding or as extended by the commissioner. Allows a court to dismiss an action of foreclosure without prejudice and order the plaintiff to pay the costs incurred by the defendant if the certification in a complaint contained a materially inaccurate statement. Prohibits the sale of a foreclosed property if a certification in a notice of foreclosure by advertisement contained a materially inaccurate statement until such time as the party attempting to foreclose by advertisement has complied with the bill.

H.C.R. 52
Passed House 12/4/07
Calls for changes in state tax and housing policy to deal with urban areas that are subject to high rates of home mortgage foreclosure and tax delinquency.

H.C.R. 78
Passed House 3/20/08
Memorializes the Congress of the United States to pass and the President to sign the Foreclosure Prevention Act of 2008.

H.R. 190
Memorializes the Congress of the United States to create the Homeowners and Bank Protection Act.

H.R. 213
Memorializes the Congress of the United States and the United States President to enact H.R. 3648, the Mortgage Forgiveness Debt Relief Act of 2007.

H.R. 278
Memorializes the Congress of the United States to allocate funding to the states for mortgage counseling services to reduce rates of housing foreclosures.

H.R. 306
Adopted 3/20/08
Memorializes the Congress of the United States to pass and the President to sign the Foreclosure Prevention Act of 2008.

H.R. 318
Memorializes the Congress of the United States to extend a freeze on active mortgage foreclosures in Michigan.

H.R. 355
Memorializes the Congress of the United States to enact the FHA Housing Stabilization and Homeownership Retention Act of 2008.

S.B. 951
Signed by governor 4/15/08, Public Act 54
Relates to the State Housing Finance Authority; expands financing for purchase of certain existing single-family residences to include refinancing.

S.B. 1305
Allows the housing development authority to offer a mortgage foreclosure extension guarantee program.

S.B. 1306
Provides for a two-year moratorium on mortgage foreclosures.

S.B. 1390
Limits the inclusion of expenses paid by foreclosure purchaser in amount required to be paid to redeem mortgage.

S.B. 1402
Provides for a credit for discharge of indebtedness on certain qualified principal residence indebtedness.

S.C.R. 17
Memorializes the Congress of the United States to enact the Homeownership Protection and Enhancement Act of 2007.

H.F. 3346
Signed by governor 3/27/08, Chapter 362
S.F. 3073
Provides assistance to prevent mortgage foreclosure; increases the maximum amount of financial assistance.

H.F. 3348
Provides for the Foreclosure Crisis Intervention Act; modifies certain landlord and tenant provisions; modifies provisions relating to mortgage foreclosure procedures and process; provides for civil and criminal enforcement to prevent predatory lending practices; provides protections relating to manufactured homes and default; provides for data practices; provides remedies; provides forms and notices; makes technical, clarifying, and conforming changes; requires a report.

H.F. 3420
Signed by governor 5/18/08, Chapter 341
S.F. 3239
Amends provisions relating to mortgage foreclosure; provides for foreclosure prevention counseling; prescribes preforeclosure and foreclosure notices.

H.F. 3473
S.F. 2916
Provides for certain mortgage tax forgiveness.

H.F. 3474
S.F. 2918
Signed by governor 4/4/08, Chapter 178
Relates to mortgages; provides for proof of abandonment for purposes of a reduced mortgage foreclosure redemption period.

H.F. 3475
Indefinitely postponed 3/17/08
S.F. 2912
Passed Senate 3/5/08
Relates to mortgages; amends various provisions relating to foreclosure.

H.F. 3476
S.F. 2908
Signed by governor 4/4/08, Chapter 177
Relates to landlord and tenant; provides for certain notices relating to foreclosure.

H.F. 3516
Signed by governor 4/25/08, Chapter 238
S.F. 2914
Substituted 4/3/08
Relates to real property; provides specification of certain information about a premises subject to foreclosure; provides for electronic recording; requiring a report.

H.F. 3517
Indefinitely postponed 3/10/08
S.F. 2910
Signed by governor 4/4/08, Chapter 174
Amends the statute dealing with expungement of eviction information to require the court to order expungement in an eviction case commenced solely on the grounds that the tenant was holding over possession of the property, if the defendant occupied real property that was subject to a contract for deed cancellation or mortgage foreclosure and: (1) the time for cancellation or redemption had expired and the defendant vacated the property before commencement of the eviction action; or (2) the defendant was a tenant during the cancellation or foreclosure redemption period and did not receive the required notice to vacate on a date prior to commencement of the eviction case. 

H.F. 3600
S.F. 3607

Relates to mortgage foreclosures; declares an emergency; permits postponement of certain mortgage foreclosure proceedings.

H.F. 3612
Indefinitely postponed 5/8/08
S.F. 3396
Vetoed by governor 5/29/08
Provides for the Minnesota Subprime Foreclosure Deferment Act of 2008.

H.F. 3931
S.F. 3845
Relates to civil actions; moves mortgage redemption sales to the end of the current redemption period; eliminates the redemption rights of the mortgagee.

H.F. 3932
S.F. 2984
Relates to real property; modifies the right of reinstatement and other provisions relating to mortgage foreclosure.

H.F. 4012
Provides for the Minnesota Subprime Foreclosure Extension Act.
H.F. 4234
Relates to mortgage lending; requires retention of records of mortgage loans; requires periodic reports to the commissioner of commerce; provides for a delay of mortgage foreclosure sales under certain circumstances.

 Mississippi

H.B. 385
Died in committee 2/19/08
Provides that in the case of a foreclosure proceeding on a deed of trust, any substitute trustee appointed for the proceeding shall be a Mississippi resident, or if not a natural person, shall have its principal office located in Mississippi.

H.B. 1028
Died in committee 2/19/08
Establishes the homeowner's emergency mortgage assistance program, which shall be administered by the Mississippi Home Corporation; authorizes the corporation to make loans to Mississippi residents who are eligible under the act; provides that before a mortgagee may accelerate the maturity of a mortgage obligation covered under the act or begin any mortgage foreclosure, certain notice must be given to the mortgagor and a determination must have been made on the mortgagor's application for emergency mortgage assistance payments; provides that foreclosure actions on mortgages covered under the act shall be temporarily stayed; specifies the requirements for giving notice to the mortgagor; specifies the requirements for eligibility for assistance with respect to a mortgage under the act; provides that the corporation shall pay to a mortgagee the full amount due under the terms of a mortgage of a mortgagor who is eligible for assistance under the act; provides that the corporation shall enter into agreements with mortgagors who receive assistance under the act for the repayment of that assistance; requires all mortgagors who receive assistance under the act to receive consumer credit counseling; creates the homeowner's emergency mortgage assistance fund in the state treasury.

H.C.R. 5
Passed House 3/20/08
Urges the United States congress to take emergency action to protect homeowners and banks by enacting a homeowners and bank protection act.

S.B. 2436
Died in committee 2/19/08
Prohibits foreclosure on residential property unless the mortgagee or holder of the mortgage gives the mortgagor 90-days' written notice; prescribes the contents of the notice to foreclose; requires the mortgagee to notify the commissioner of banking and consumer finance of the date of the foreclosure sale, the purchase price obtained at the sale, and a copy of the notice to foreclose; requires the commissioner of banking and consumer finance to maintain a database of certain foreclosure activity information.

S.B. 2809
Died in committee 2/19/08
Provides a program for homeowner's emergency assistance administered by the Mississippi Home Corporation; authorizes the Mississippi Home Corporation to administer the program; provides for eligibility for such loans by notice and institution of foreclosure proceedings; prescribes eligibility requirements for assistance; provides for making of assistance payments to the mortgagee on behalf of the mortgagor; provides for agreements for repayment; provides for post-assistance counseling; creates the homeowner's emergency mortgage assistance fund; authorizes appropriation into the fund to provide start up costs.

S.B. 2853
Died in committee 2/19/08
Provides a program for homeowner's emergency assistance administered by the Mississippi Home Corporation; authorizes the Mississippi Home Corporation to administer the program; provides for eligibility for such loans by notice and institution of foreclosure proceedings; prescribes eligibility requirements for assistance; provides for making of assistance payments to the mortgagee on behalf of the mortgagor; provides for agreements for repayment; provides for post-assistance counseling; creates the homeowner's emergency mortgage assistance fund; authorizes appropriation into the fund to provide start up costs.

 Missouri

L.B. 123
Signed by governor 3/10/08
Enacts the Nebraska Foreclosure Protection Act; places requirements on foreclosure consulting contracts. These requirements are generally “full disclosure” types of requirements put in place as a form of consumer protection. Addresses homeowners rights to cancel a foreclosure consulting contract. Outlines certain prohibited actions for foreclosure consultants. Addresses provisions of foreclosure consulting contracts and equity purchase contracts.

L.B. 717
Amends §25-202 to provide that its provisions regarding the statute of limitations for causes of actions for foreclosure of mortgages also apply to deeds of trust and that if no date of maturity is stated or ascertainable from the filed mortgage or deed of trust the cause of action for foreclosure accrues no later than 30 years rather than no later than 20 years after the date of the mortgage or deed of trust.

L.B. 851
Signed by governor 3/19/08
Changes provisions relating to actions for the recovery of title or possession of real estate or foreclosure of mortgages; provides for the foreclosure of deeds of trust. 

New Hampshire

H.B. 1333
Vetoed by governor 7/11/08
Defines a purchaser at a mortgage foreclosure sale and allows a purchaser at a mortgage foreclosure sale to terminate a tenancy of the property by a notice to quit.

H.C.R. 14
Inexpedient to legislate 3/5/08
Urges Congress to establish the Homeowners and Bank Protection Act.

A.B. 281

S.B. 1265
This bill, the "Foreclosure Rescue Fraud Prevention Act," requires foreclosure consultants and distressed property purchasers, who contract with owners of residential properties in financial distress, to adhere to certain practices in providing foreclosure prevention services to owners. The bill requires a foreclosure consultant to post a bond with the Division of Consumer Affairs prior to conducting any business in the state. In addition, the bill provides certain contract rights for owners of a financially distressed residential property, as defined in the bill, who contract with foreclosure consultants, including requirements that: (1) the contract for foreclosure consulting services must be in writing and must contain certain disclosures and notice requirements in 14-point boldface type; and (2) the owner has a right to cancel the foreclosure consulting contract at any time until after the foreclosure consultant has fully performed every service the consultant contracted to perform. The bill also prohibits certain practices by foreclosure consultants, including: (1) collecting any fee prior to the completion of all agreed upon services, unless compensation for partial performance is expressly agreed upon in the contract; and (2) collecting fees in excess of certain limits as described in the bill. In situations in which there is a distressed property conditional conveyance, whereby an owner transfers the distressed property to a distressed property purchaser, occupies the property, and retains an option to purchase the property back from the purchaser, or a distressed property conveyance, whereby an owner simply transfers the distressed property to a distressed property purchaser, the bill provides certain contract rights to owners, including requirements that: (1) the contract be in writing and include certain notices and disclosures in 14-point boldface type; and (2) the owner has a right to cancel the contract during certain periods as described in the bill. As to distressed property conditional conveyances, the bill places certain obligations on distressed property purchasers, including requirements to: (1) verify that the owner has a reasonable ability to pay for a subsequent conveyance of title back to the owner; (2) ensure that the owner is paid at least 82 percent of the property’s fair market value in consideration for the owner’s conveyance of title, or transfer of a beneficial interest through a trust, to the distressed property purchaser; and (3) provide to the owner, prior to a distressed property conditional conveyance, a disclosure statement that includes all costs the owner will incur in connection with the conveyance and any option for the owner to purchase the property back from the purchaser. As to distressed property conveyances, the bill places certain obligations on distressed property purchasers, including a requirement that the owner is paid at 82 percent of the property’s fair market value in consideration of the owner’s transfer of title to the distressed property purchaser. For a violation of the bill’s provisions, the bill provides for a civil penalty of not more than $10,000 for the first offense, and not more than $20,000 for the second and each subsequent offense, which penalty may be collected in a summary proceeding pursuant to the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.). The bill provides that any person who violates any provision of the bill is guilty of a crime of the third degree. A person who violates any provision of the bill in connection with a pattern of foreclosure rescue fraud or a conspiracy or endeavor to engage in a pattern of foreclosure rescue fraud is guilty of a crime of the second degree. The bill also provides that any distressed property conditional conveyance or distressed property conveyance involving the transfer of an interest in fee or a beneficial interest through a trust document, which is made in violation of any provision of the bill, is voidable and the transfer may be rescinded by the owner within two years of the date of the transfer. In addition, the bill provides that an owner may bring an action in Superior Court against a foreclosure consultant or a distressed property purchaser for any violation of the bill’s provisions, for treble damages, attorney’s fees, costs of suit and appropriate equitable relief. If an owner commences such an action, the owner may: (1) cause a notice of lis pendens to be filed in the office of the county clerk in the county in which the property is located, pursuant to N.J.S.2A:15-6 et seq.; and (2) introduce or provide as evidence in the action, any contemporaneous oral agreements or representations made to the owner by any party to a foreclosure consultant contract or distressed property conveyance contract signed by the owner. Finally, the bill provides that the director of the Division of Consumer Affairs, within the Department of Law and Public Safety, in consultation with the commissioner of Banking and Insurance, shall enforce the provisions of the bill, and may promulgate regulations necessary to effectuate the purposes of the bill.

A.B. 2263
Withdrawn from further consideration 9/22/08
Supplements the “Fair Foreclosure Act,” P.L.1995, c.244 (C.2A:50-53 et seq.) by applying a statute of limitations to residential mortgage foreclosure actions. The bill is intended to address some of the problems caused by the presence on the record of residential mortgages which have been paid or which are otherwise unenforceable. These mortgages constitute clouds on title which may render real property titles unmarketable and delay real estate transactions. The bill provides that a foreclosure action must be commenced by the earlier of: (1) six years from the date of maturity; or (2) 20 years from the date of default by the debtor. Thus, the bill allows a determination that certain mortgages are not clouds on title because an action can no longer be brought to foreclose them. The bill also codifies the holding in Security National Partners Limited Partnership v. Mahler, 336 N.J. Super. 101 (App. Div. 2000), which applied a 20-year statute of limitations to a residential mortgage foreclosure action based on a default due to nonpayment. In its decision, the court noted that since there is no statute of limitations expressly applicable to mortgage foreclosures in these situations, courts have resorted to drawing analogies to adverse possession statutes which bar rights of entry onto land after 20 years. This bill resolves the uncertainties surrounding this area of law by providing a specific statute of limitations of 20 years from the date of the default by the debtor.

A.B. 2496
Amends the “Fair Foreclosure Act,” P.L.1995, c.244 (C.2A:50-53 et seq.), to require a uniform procedure for each sheriff’s office in the state to provide notices to debtors and all parties named as defendants in mortgage foreclosure actions as to surpluses from the sale of foreclosed properties. The bill requires notices to debtors and all parties named as defendants in the foreclosure action, both prior to the mortgage foreclosure sale and after the deposit of any surplus into Superior Court. Specifically, the bill requires the sheriff’s office, no less than two weeks prior to the date of a mortgage foreclosure sale, to hand deliver or send written notice by registered or certified mail, return receipt requested, to their last known addresses, to the debtor and all parties named as defendants in the foreclosure action, informing them that: (1) a foreclosure judgment is entered in relation to the foreclosed property identified in the notice and a sheriff’s sale of the property is scheduled for the date set forth in the notice; (2) the sheriff’s sale of the property may result in a surplus that the debtor and all parties named as defendants in the foreclosure action may have a right to claim; (3) the debtor and all parties named as defendants in the foreclosure action may contact the sheriff’s office after the sale to determine if there is a surplus; and (4) if a surplus results from the sale, the debtor and all parties named as defendants in the foreclosure action may apply to the Superior Court of New Jersey to assert a claim for all or a portion of the surplus. The bill also requires that if a surplus results from the foreclosure of a mortgage, the sheriff’s office must, within two weeks of the date of the deposit of the surplus with the Superior Court of New Jersey, hand deliver or send written notice by registered or certified mail, return receipt requested, to their last known addresses, to the debtor and all parties named as defendants in the foreclosure action, informing them that: (1) the sale has resulted in a surplus that the debtor and all parties named as defendants in the foreclosure action may have a right to claim; and (2) the debtor and all parties named as defendants in the foreclosure action may contact the sheriff’s office to determine the amount of the surplus and may apply to the court to assert a claim for all or a portion of the surplus.

A.B. 2517
This bill, entitled the “New Jersey Homeownership Preservation Act," provides for a trust fund, the Foreclosure Prevention Revolving Trust Fund, to be established in the Department of Community Affairs for the purpose of providing relief to homeowners in this State who are at risk of mortgage foreclosure. The bill also places certain requirements on creditors who initiate foreclosure proceedings against homeowners who have "covered mortgage loans," which, as defined in the bill, are loans normally associated with the subprime lending market. The trust fund established by the bill is comprised of monies collected from a $2,000 fee applied to each creditor who initiates a foreclosure action against a borrower under a covered mortgage loan, and a $1 million appropriation from the reserves or administrative monies of the New Jersey Housing and Mortgage Finance Agency. The bill directs the department to use the trust fund to provide certain grants and loans, in accordance with a schedule set forth in the bill, to qualified counseling agencies, as defined in the bill, and non-profit agencies. Qualified counseling agencies must use the funding to assist homeowners by providing foreclosure prevention counseling services and making emergency foreclosure prevention assistance loans. The non-profit agencies must use the funding to assist homeowners by restructuring covered mortgage loans acquired from creditors or restoring properties acquired from creditors. The bill applies certain conditions as to the allocated funds, including requirements for the department to use contractual guarantees and to establish procedures, to ensure that the qualified counseling agencies and non-profits use the funds to effectively assist financially distressed homeowners who are most at risk for foreclosure. The bill also applies certain requirements to creditors who initiate foreclosure proceedings as to a covered mortgage loan pursuant to the “Fair Foreclosure Act” P.L.1995, c.244 (C.2A:50-53) by issuing a notice of intention to foreclose. Under certain circumstances, the creditor must: (1) grant the borrower, upon the borrower’s request, a six month period of forbearance so that the borrower may pursue a loan workout, loan modification, refinancing, or other alternative. During the period of forbearance, the interest rate cannot increase and the creditor cannot take any further action to foreclose on the property, beyond issuing the notice of intention; and (2) file certain reports with the Department of Banking and Insurance, indicating the status of the foreclosure and any attempts to work out the mortgage payments with the borrower. Further, the bill requires a creditor that issues a notice of intention to foreclose mortgage on residential property, to notify the municipality by providing a copy of the notice to the public officer or municipal clerk of the municipality. In certain circumstances, the bill makes the creditor responsible to abate any nuisance or correct any violations related to the property, and provides the municipality with recourse against the creditor for failure to do so. The bill also provides that a consumer reporting agency or any other business entity may not sell to, or exchange with, a third party, unless the third party holds an existing mortgage loan on the property, the existence of a credit inquiry arising from a consumer mortgage loan application when the sale or exchange is triggered by an inquiry made in response to an application for credit. That section shall not apply to information provided by a mortgage originator or servicer to a third party providing services in connection with the mortgage loan origination or servicing; a proposed or actual securitization; secondary market sale, including sales of servicing rights; or similar transaction related to the consumer mortgage loan. The bill also provides that a homeowner who is a borrower under a covered mortgage loan and who loses the home to foreclosure, may remain in possession of the property as a tenant in possession, under certain circumstances, provided the homeowner pays fair market rent to the owner of the property. Finally, the bill provides that the Department of Community Affairs, in consultation with the Department of Banking and Insurance, shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations to effectuate the purposes of the bill.

A.B. 2780
Signed by governor 9/15/08, Chapter 86

S.B. 1853
Substituted 6/23/08
This bill, entitled the "Save New Jersey Homes Act of 2008," requires creditors to provide a three year period of extension to borrowers who are obligated to repay introductory rate mortgage loans on residential properties under certain circumstances. As defined in the bill, an introductory rate mortgage provides for a introductory interest rate that resets after a period of time. The bill provides a period of extension, during which the introductory rate does not reset, to "eligible borrowers" whose mortgage interest rates are about to reset. The bill also provides a period of extension, during which the introductory rate does not reset and during which foreclosure proceedings are suspended, to "eligible foreclosed borrowers" whose mortgages are being foreclosed pursuant to the "Fair Foreclosure Act," P.L.1995, c.244 (C.2A:50-53 et seq.). The bill is intended to address an economic crisis resulting from the resetting of mortgage rates from low introductory rates to higher, variable rates, which is likely to contribute to the already increasing rate of defaults experienced by New Jersey homeowners. By providing a period of extension for existing mortgages, the bill allows time for creditors and borrowers to renegotiate more reasonable terms as to mortgage loans that are financially unworkable for the borrowers, so as to avoid foreclosures that result in a financial detriment to both creditor and borrower. The bill provides that prior to the date on which the interest rate will reset on an introductory rate mortgage, a creditor must provide to an eligible borrower a series of written notices, alerting the borrower to the impending interest rate reset, and providing certain information about the reset interest rate, any refinancing or renegotiation of the loan offered by the creditor, and the borrower's right to obtain a three year period of extension under the terms of the bill. The creditor must provide an eligible borrower with a three year period of extension, during which the interest rate on the introductory rate mortgage shall not increase above the original introductory rate, on the condition that the eligible borrower provides a certificate of extension to the creditor, prior to the date that interest rate resets under the terms of the introductory rate mortgage. The certificate of extension must contain certain statements, including that the eligible borrower: (1) is unable to pay the monthly payments that will apply after the date that the interest rate resets; (2) agrees to continue monthly payments calculated at the introductory interest rate, during the period of extension; (3) agrees to pay the creditor, at the time of transfer of the property, any interest deferred on account of the period of extension; and (4) agrees to accept the creditor’s placement of a subordinate lien on the property to secure the repayment of the interest deferred on account of the period of extension. An eligible borrower who makes a knowing material misrepresentation in a certificate of extension is guilty of a crime of fourth degree. A creditor who grants a period of extension to an eligible foreclosed borrower shall have the right to record a subordinate lien on the eligible foreclosed borrower’s property to secure the borrower’s repayment of the amount of interest deferred by the period of extension and any arrearages owed on the mortgage. The subordinate lien shall have the same priority as the lien of the introductory rate mortgage. An eligible borrower who fails to make the appropriate payments during the period of extension forfeits all rights concerning the deferment of interest payments and suspension of foreclosure. The bill also provides that a creditor that issues to an eligible foreclosed borrower a notice of intention to foreclose an introductory rate mortgage pursuant to the "Fair Foreclosure Act," P.L.1995, c.244 (C.2A:50-53 et seq.), shall send to the eligible foreclosed borrower a series of written notices, by regular and registered mail, separate and distinct from all other correspondence and written in plain language. The notices shall include: (1) A statement that the information in the notice is being provided as required by the “Save New Jersey Homes Act of 2008,” which was enacted by the New Jersey Legislature and which provides certain rights to borrowers who homes are the subject of a mortgage foreclosure action; (2) A list of alternatives to foreclosure that an eligible foreclosed borrower may pursue, including any refinancing of the loan offered by the creditor and any renegotiation of loan terms offered by the creditor; (3) An explanation of the eligible foreclosed borrower’s right to obtain a period of extension for three years and an explanation of the procedure that an eligible foreclosed borrower must follow to obtain a period of extension; and (4) A certification of extension form that can be completed by an eligible foreclosed borrower in order to obtain the period of extension. The notices shall be sent within 10 days of issuing the notice of intention and also at the time that the creditor applies for entry of final judgment of foreclosure. The notices shall be sent in envelopes with certain information on the outside front portion of the envelope that alerts the borrower to the enactment of the Save New Jersey Homes Act of 2008 and to the period of extension from foreclosure available under the act. The bill also provides that a creditor must provide an eligible foreclosed borrower with a three year period of extension, during which the interest rate on the introductory rate mortgage shall not increase above the original introductory rate, and during which foreclosure proceedings pursuant to the “Fair Foreclosure Act” are suspended. The creditor must grant this relief on the condition that the eligible foreclosed borrower provides a certification of extension to the creditor no later than 90 days of the date that the creditor applies for entry of final judgment of foreclosure. The certification of extension must contain certain statements, including that the eligible borrower agrees: (1) to continue monthly payments, with interest calculated at the introductory rate, during the period of extension; (2) to pay the creditor, at the time of transfer of the property, any interest deferred on account of the period of extension and any arrearages on the mortgage; and (3) to accept the creditor’s placement of a subordinate lien on the property to secure the repayment of the interest deferred on account of the period of extension, and any arrearages owed on the mortgage. A creditor who grants a period of extension to an eligible foreclosed borrower shall have the right to record a subordinate lien on the eligible foreclosed borrower’s property to secure the borrower’s repayment of the amount of interest deferred by the period of extension and any arrearages owed on the mortgage. The subordinate lien shall have the same priority as the lien of the introductory rate mortgage. An eligible foreclosed borrower who fails to make the appropriate payments during the period of extension forfeits all rights concerning the deferment of interest payments and suspension of foreclosure. Any person who violates any provision of the bill shall be liable to a penalty of not more than $10,000 for the first offense, and not more than $20,000 for the second and subsequent offense, which penalty may be collected in a summary proceeding pursuant to the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.). The bill provides that its terms become effect immediately upon enactment, and remain in effect until January 1, 2011.

A.B. 2934

S.B. 1956
Allows an aggrieved employee or former employee of an employer who has been found to be in violation of the “Millville Dallas Airmotive Plant Job Loss Notification Act,”P.L. 2007, c.212 (C.34:21-1 et seq.), also more commonly referred to as the “plant closing law,” or the “NJ WARN Act,” to request a suspension of the payment of interest on a mortgage loan that was secured by the person before entry of the court order finding a violation of that act. The suspension would remain in effect for 180 days from the date of the order and interest that was incurred during that time shall be paid, after the expiration of the suspension, in equal installments over the remaining term of the mortgage loan. The bill only applies to a person who is domiciled in this state and to a mortgage securing a primary residence located in this state. To obtain the suspension, a person would submit to the mortgagee a written request which shall include: (1) a copy of the court order finding a violation of P.L.2007, c.212 (C.34:21-1 et seq.); and (2) an affidavit stating that the person is an aggrieved employee or former employee of the employer named in the order and further that the person is a mortgagor of the mortgage loan with respect to which the request is being made.

A.B. 3125
Allows a municipality to require a creditor who initiates a foreclosure proceeding against a residential property located in the municipality to maintain the property in accordance with state and local housing codes if the property becomes vacant during the foreclosure proceeding. The bill requires a creditor that serves a notice of intention to foreclose on a mortgage on residential property in this state pursuant to the "Fair Foreclosure Act," P.L.1995, c.244 (C.2A:50-53 et seq.), to serve the public officer or municipal clerk of the municipality in which the property is located, with a copy of the notice at the same time that the creditor serves the notice on the owner of the property. The creditor shall include the full name and contact information of a person located within the state who is authorized to accept service on behalf of the creditor with the copy of the notice served on the public officer or municipal clerk. The bill also provides that if the residential property becomes vacant at any time after the creditor files the notice of intention to foreclose, but prior to vesting of title in any third party, and the municipality determines that the property is in violation of any applicable state or local housing code, the municipality may provide the creditor with notice of the violation, and may require the creditor to correct the violation. Further, the bill provides that a municipality that requires a creditor to correct a violation pursuant to this bill shall include a description of the conditions that gave rise to the violation with the notice of violation and shall provide a period of not less than 30 days for the creditor to remedy the violation. If the creditor fails to remedy the violation within that time period, the bill allows the municipality to impose penalties currently allowed for the violation of municipal ordinances pursuant to R.S. 40:49-5.

A.B. 3246
The provisions of the bill are intended to assist municipalities in meeting their respective fair share housing obligation under the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.) through the purchase of existing units of housing that are the subject of foreclosure proceedings and the rehabilitation or other subsidizing of those housing units for affordable housing purposes, as permitted under the rules of the Council on Affordable Housing. The bill amends the "Fair Housing Act" to expand the duties of the New Jersey Housing and Mortgage Finance Agency under that act to create a program to assist municipalities in the purchase or subsidizing of homes in foreclosure. The agency is directed, not less than once per month, to obtain from the Office of Foreclosure in the Administrative Office of the Courts a list of each parcel of residential real property in the state upon which a complaint for foreclosure has been filed, and a list of residential real property on which a final judgment in foreclosure has been entered. At its discretion, the agency may also contact any bank, credit union or other financial services institution which may write, hold or service mortgages on residential real property to obtain such information from those entities. The bill requires that each listed property must be identified on the list by its mailing address and by its lot and block numbers, along with the amount of the outstanding principal on the mortgage. The bill requires the agency, on a monthly basis, to sort the lists of residential real property obtained by municipality, and to electronically distribute the list to each municipality. The agency is instructed by the bill to assist municipalities wishing to participate in the program.

A.B. 3247
This bill, designated as the "Affordable Housing State Tax Credit Act," creates a corporation business tax credit for financial entities that hold residential mortgage loans, and which donate foreclosed residential real property to municipalities for use as affordable housing. Under the bill, a taxpayer that is a financial entity a financial entity (defined in the bill as a bank, credit union, mortgage company or other financial service institution doing business in New Jersey that holds mortgage loans on residential real property) that has donated to a qualified municipality (defined in the bill as a municipality that has petitioned the Council on Affordable Housing for substantive certification pursuant to the "Fair Housing Act") a residential real property for which it has received a final judgment in foreclosure and for which it has obtained an eligible affordable housing tax credit certificate from the Housing and Mortgage Finance Agency shall be allowed a credit against the corporation business tax, imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), in an amount equal to the true value of the donated residential real property, as calculated by the municipal tax assessor. The bill caps the amount of a tax credit allowed a taxpayer for a tax year at $1,000,000, but the amount of this credit for a tax year, when taken together with any other credits allowed against that tax, cannot exceed 50 percent of the tax liability otherwise due and cannot reduce the tax liability to an amount less than the statutory minimum provided by law. The bill provides that the total tax credits certified for all donations proposed in a fiscal year shall not exceed $10,000,000. A financial entity desiring to donate a residential real property for use as affordable housing pursuant to the provisions of the bill would provide the New Jersey Housing and Mortgage Finance Agency with the name of the municipality in which the residential real property is located, and the street address, lot number and block number for the property that it is seeking to donate. The agency must forward this information to the municipality wherein the property is situate within a reasonable time period. If the municipal governing body determines that the residential real property being offered by the financial entity is desirable and appropriate for local affordable housing needs, the governing body would advise the agency and the financial institution that it will accept the donation of the residential real property. The bill requires the agency to coordinate the donation of the residential real property and to ensure that affordability controls are placed on any property being credited pursuant to the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.). Once all documents required to be recorded have been recorded, the agency would then issue a certificate of tax credit to the financial entity.

A.B. 3269

S.B. 250
Passed Senate 5/22/08
This bill supplements the “Fair Foreclosure Act,” P.L.1995, c.244 (C.2A:50-53 et seq.) by applying a statute of limitations to residential mortgage foreclosure actions. The bill is intended to address some of the problems caused by the presence on the record of residential mortgages which have been paid or which are otherwise unenforceable. These mortgages constitute clouds on title which may render real property titles unmarketable and delay real estate transactions. The bill provides that a foreclosure action must be commenced by the earliest of: (1) five years from the date of maturity; (2) 25 years from the date of recording or execution, provided that the mortgage itself does not provide for a period of repayment in excess of 20 years; or (3) 20 years from the date of default by the debtor. Thus, the bill allows title examiners to determine that a mortgage which on its face has matured more than five years ago or which was recorded more than 25 years ago is not a cloud on title because an action can no longer be brought to foreclose it. The bill also codifies the holding in Security National Partners Limited Partnership v. Mahler, 336 N.J. Super. 101 (App. Div. 2000), which applied a 20-year statute of limitations to a residential mortgage foreclosure action based on a default due to nonpayment. In its decision, the court noted that since there is no statute of limitations expressly applicable to mortgage foreclosures in these situations, courts have resorted to drawing analogies to adverse possession statutes which bar rights of entry onto land after 20 years. This bill would resolve the uncertainties surrounding this area of law by providing a specific statute of limitations of 20 years from the date of the default by the debtor.

A.B. 3293
Passed Assembly 10/27/08

S.B. 2338
Link not available
Exempts certain sales of residential property to a purchaser operating as a housing assistance and recovery program (HARP) from the payment of realty transfer fees. Under a HARP, a not-for-profit entity, such as a church organization, partners with a bank to rescue homeowners in danger of foreclosure or eviction. The not-for-profit entity works with the mortgage holder to purchase the property and then leases the property back to the original homeowner at an affordable rent. The goal of the HARP is to help financially strengthen the homeowner within a seven-year period, and then resell the property back to that homeowner, or member of the family living with the homeowner. The purpose of the sale or transfer to the HARP is to stop foreclosure or eviction proceedings; therefore, it does not make sense to charge a realty transfer fee because the property will be returned to the seller. To discourage fraud, if the property is sold to someone other than the original seller, or a person residing with the seller, then an amount equal to twice the realty transfer fee would be collected at the time of that subsequent sale.

A.R. 92
Constitutes the Financial Institutions and Insurance Committee as a special committee to investigate the business practices of foreclosure consultants, the impact that these practices have had on foreclosure rates, the ability of New Jersey residents who retain foreclosure consultants to preserve the benefit of the equity in their homes, and whether and to what extent foreclosure consultants have acted improperly or unethically in conducting foreclosure rescue practices in the state. Upon passage of this resolution, the committee would have the power to subpoena witnesses and documents pursuant to Chapter 13 of Title 52 of the Revised Statutes.

S.B. 1264
This bill, the "Foreclosure Consulting and Anti-Fraud Act," clarifies the existing scope and provisions of P.L.1979, c.16 (C.17:16G-1 et seq.), concerning debt adjustment and credit counseling activities, with respect to certain foreclosure consulting practices. Clarifies that under existing law, foreclosure consultants who, directly or indirectly, solicit, offer to perform, or perform debt adjustment or credit counseling activities for property owners facing foreclosure, in order to assist such owners regarding their ability to retain ownership or possession of the property, are required to be licensed in this state as debt adjusters. Includes distressed property purchasers as among those who must be licensed as debt adjusters under the law. A distressed property purchaser is anyone who acquires an interest in fee or a beneficial interest through a trust document in a distressed property, while allowing the debtor-owner to possess, occupy, or retain a leasehold interest or any present or future interest in fee in the property, or anyone involved in a joint venture or enterprise involving a distressed property conveyance. Provides the commissioner of Banking and Insurance with additional regulatory authority to oversee foreclosure consulting activities as well as other debt adjustment and credit counseling activities in this state. Such regulatory authority includes: i) permitting the commissioner to establish licensing requirements for any agent, officer, or employee of a debt adjuster, or any category of agent, officer, or employee, which may include disqualifications based upon standards of good moral character; and ii) permitting the commissioner, as part of any licensing application, to require the applicant, or any category of applicants, to consent to a criminal history record background check, and any additional background check as deemed appropriate. While the commissioner is already authorized to request an annual report from any debt adjuster concerning that adjuster’s activities conducted in the preceding calendar year, the bill emphasizes that the commissioner may also collect information from a debt adjuster encompassing only one or more particular activities, such as those activities primarily performed with respect to foreclosure consulting. Concerning penalties for violations of the applicable debt adjustment and credit counseling law, the bill would now permit any person to bring an action for punitive damages, as well as receive attorney’s fees and costs of suit. Additionally, the bill clarifies the law’s penalty provisions by emphasizing that the commissioner’s existing authority to enjoin, in addition to any licensed debt adjuster, "any other person concerned or in any way participating in" a violation of the law, includes, with respect to foreclosure consulting activities, which activities may include a conveyance of the property, any mortgage banker, mortgage broker, or other licensee pursuant to the "New Jersey Licensed Lenders Act," P.L.1996, c.157 (C.17:11C-1 et seq.), any real estate broker or other licensee pursuant to R.S.45:15-1 et seq., or any real estate appraiser licensed or certified pursuant to the "Real Estate Appraisers Act," P.L.1991, c.68 (C.45:14F-1 et seq.).

S.B. 1599
This bill, entitled the “New Jersey Homeownership Preservation Act," provides for a trust fund, the Foreclosure Prevention Revolving Trust Fund, to be established in the Department of Community Affairs for the purpose of providing relief to homeowners in this state who are at risk of mortgage foreclosure. The bill also places certain requirements on creditors who initiate foreclosure proceedings against homeowners who have “covered mortgage loans,” which, as defined in the bill, are loans normally associated with the subprime lending market. The trust fund established by the bill is comprised of monies collected from a $2,000 fee applied to each creditor who initiates a foreclosure action against a borrower under a covered mortgage loan, and a $1 million appropriation from the reserves or administrative monies of the New Jersey Housing and Mortgage Finance Agency. The bill directs the department to use the trust fund to provide certain grants and loans, in accordance with a schedule set forth in the bill, to qualified counseling agencies, as defined in the bill, and non-profit agencies. Qualified counseling agencies must use the funding to assist homeowners by providing foreclosure prevention counseling services and making emergency foreclosure prevention assistance loans. The non-profit agencies must use the funding to assist homeowners by restructuring covered mortgage loans acquired from creditors or restoring properties acquired from creditors. The bill applies certain conditions as to the allocated funds, including requirements for the department to use contractual guarantees and to establish procedures, to ensure that the qualified counseling agencies and non-profits use the funds to effectively assist financially distressed homeowners who are most at risk for foreclosure. The bill also applies certain requirements to creditors who initiate foreclosure proceedings as to a covered mortgage loan pursuant to the "Fair Foreclosure Act" P.L.1995, c.244 (C.2A:50-53) by issuing a notice of intention to foreclose. Under certain circumstances, the creditor must: (1) grant the borrower, upon the borrower’s request, a six month period of forbearance so that the borrower may pursue a loan workout, loan modification, refinancing, or other alternative. During the period of forbearance, the interest rate cannot increase and the creditor cannot take any further action to foreclose on the property, beyond issuing the notice of intention; and (2) file certain reports with the Department of Banking and Insurance, indicating the status of the foreclosure and any attempts to work out the mortgage payments with the borrower. Further, the bill requires a creditor that issues a notice of intention to foreclose mortgage on residential property, to notify the municipality by providing a copy of the notice to the public officer or municipal clerk of the municipality. In certain circumstances, the bill makes the creditor responsible to abate any nuisance or correct any violations related to the property, and provides the municipality with recourse against the creditor for failure to do so. The bill also provides that a consumer reporting agency or any other business entity may not sell to, or exchange with, a third party, unless the third party holds an existing mortgage loan on the property, the existence of a credit inquiry arising from a consumer mortgage loan application when the sale or exchange is triggered by an inquiry made in response to an application for credit. That section shall not apply to information provided by a mortgage originator or servicer to a third party providing services in connection with the mortgage loan origination or servicing; a proposed or actual securitization; secondary market sale, including sales of servicing rights; or similar transaction related to the consumer mortgage loan. The bill also provides that a homeowner who is a borrower under a covered mortgage loan and who loses the home to foreclosure, may remain in possession of the property as a tenant in possession, under certain circumstances, provided the homeowner pays fair market rent to the owner of the property. Finally, the bill provides that the Department of Community Affairs, in consultation with the Department of Banking and Insurance, shall adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations to effectuate the purposes of the bill.

S.B. 1602
Requires the New Jersey Department of Community Affairs (DCA) to establish, maintain, and regularly update a Web site that will provide homeowners and other interested parties with answers to frequently asked questions about refinancing and curing mortgage defaults and list, describe, and provide a Web site link to various federal, state, local, for-profit, and non-profit organizations that provide services or guidance related to mortgage and credit problems. The bill permits DCA to publicly promote the homeowner assistance program Web site through public access advertising and other available outlets, and may apply for and accept grants from the federal government, or any agency thereof, or grants, gifts or other contributions from any foundation, corporation, association or individual, and complying with the terms, conditions and limitations thereof, for the purpose of financing and promoting the website, and may partner with the federal government, or any agency thereof, or any foundation, corporation, association or individual, to develop, maintain, and update the Web site. Finally, the bill appropriates $50,000 from the General Fund to DCA to effectuate the provisions of this act.

S.B. 1619
Provides greater regulatory oversight and consumer protections concerning certain mortgage products, mortgage lending, and mortgage foreclosure practices. For current and future borrowers facing mortgage foreclosures, the bill provides additional consumer protections by expanding and clarifying the scope and provisions of P.L.1979, c.16 (C.17:16G-1 et seq.), concerning debt adjustment and credit counseling activities, to expressly incorporate certain “foreclosure consulting practices.” The bill clarifies that under existing law, foreclosure consultants who, directly or indirectly, solicit, offer to perform, or perform debt adjustment or credit counseling activities for property owners facing foreclosure with respect to such owners’ ability to retain ownership or possession of their property, are required to be licensed in this State as debt adjusters. The bill also includes “distressed property purchasers” as among those who must be licensed as debt adjusters under the law. A distressed property purchaser is anyone who acquires an interest in fee or a beneficial interest through a trust document in a distressed property, while allowing the debtor-owner to possess, occupy, or retain a leasehold interest or any present or future interest in fee in the property, or anyone involved in a joint venture or enterprise involving a distressed property conveyance. The bill provides the commissioner of Banking and Insurance with additional regulatory authority to oversee foreclosure consulting activities as well as other debt adjustment and credit counseling activities in this state. Such regulatory authority includes: i) permitting the commissioner to establish licensing requirements for any agent, officer, or employee of a debt adjuster, or any category of agent, officer, or employee, which may include disqualifications based upon standards of good moral character; and ii) permitting the commissioner, as part of any licensing application, to require the applicant, or any category of applicants, to consent to a criminal history record background check, and any additional background check as deemed appropriate. While the commissioner is already authorized to request an annual report from any debt adjuster concerning that adjuster’s activities conducted in the preceding calendar year, the bill emphasizes that the commissioner may also collect information from a debt adjuster encompassing only one or more particular activities, such as those activities primarily performed with respect to foreclosure consulting. The bill, concerning penalties for violations of the applicable debt adjustment and credit counseling law, would permit any person to bring an action for punitive damages, as well as receive attorney’s fees and costs of suit. Additionally, the bill clarifies the law’s penalty provisions by emphasizing that the commissioner’s existing authority to enjoin any licensed debt adjuster and “any other person concerned or in any way participating in” a violation, includes, with respect to distressed property conveyances, any mortgage banker, mortgage broker, or other licensee licensed pursuant to the “New Jersey Licensed Lenders Act,” P.L.1996, c.157 (C.17:11C-1 et seq.), any real estate broker, broker-salesperson, or salesperson licensed pursuant to R.S.45:15-1 et seq., or any real estate appraiser licensed or certified pursuant to the "Real Estate Appraisers Act," P.L.1991, c.68 (C.45:14F-1 et seq.).

A.B. 3087
Authorizes loans to distressed homeowners whose homes are subject to a mortgage that is either in danger of being foreclosed or that is in the process of being foreclosed due to a default in the terms of the mortgage; requires written disclosure by the investor to the distressed homeowner.

A.B. 3413
Increases the fees paid to foreclosure referees.

A.B. 6419
Requires a mortgagee or lienor who institutes proceedings to foreclose, to have a receiver appointed and ordered to enter into an agreement with the appropriate agency to repair and correct violations of housing maintenance laws, or alternatively to take possession of the premises themselves and enter into a repair agreement with the city agency to prevent the agency from taking title to an abandoned building.

A.B. 6984

S.B. 4051
Requires that notice of foreclosure be served upon all tenants of the building that is being foreclosed.

A.B. 7983
Provides that mortgagees be provided with additional notice when foreclosure actions have been commenced.

A.B. 8605
Provides a home owner in a foreclosure preceding who is financially unable to obtain counsel with the right to assigned counsel by the court.

A.B. 8881
Prevents financial institutions from foreclosing on certain subprime mortgages in this state for a certain period of time; creates a temporary state commission to be known as the commission on foreclosures due to deceptive subprime lending practices.

A.B. 8968

S.B. 7996
Enacts the "Access to Justice in Lending Act"; relates to a mortgagor's right to recover attorney's fees in actions or proceedings arising out of foreclosures of residential property; provides reciprocal attorney's fees.

A.B. 9694

S.B. 6723
Increases the bond limit of the state of New York mortgage agency for the purpose of refinancing subprime loans at risk of foreclosure.

A.B. 9695
Passed Assembly 5/7/08

S.B. 6724
Provides foreclosure relief for fundamentally unaffordable mortgage loans, second mortgages and home equity loans.

A.B. 9930

S.B. 5936
Establishes the urban homeowners assistance program to assist first time, low or moderate income, or minority homeowners avoid foreclosure by authorizing and directing the commissioner of the state division of housing and community renewal to enter into contracts with neighborhood preservation companies to provide for such assistance to residents in certain urban communities.

A.B. 9931

S.B. 5935
Establishes the rural homeowners assistance program for assisting first time, low or moderate income, or minority homeowners from foreclosure by authorizing and directing the commissioner of state division of housing and community renewal to enter into contracts with neighborhood preservation companies to provide such assistance to residents in certain rural communities.

A.B. 10083
Passed Assembly 5/7/08

S.B. 8093
Enacts the "Foreclosure Prevention Act of 2008"; establishes that before any mortgagee may accelerate the maturity of any eligible mortgage obligation, commence any legal action including mortgage foreclosure, or take possession of any security of the mortgage debtor for such mortgage obligation that such mortgagee shall give the mortgagor notice; authorizes the commissioner of the state division of housing and community renewal to enter into contracts with neighborhood preservation companies to provide temporary homeownership assistance activities; gives notice to mortgagors of foreclosure prevention activities and payments; creates the New York state foreclosure prevention fund.

A.B. 10287

S.B. 7182
Amends the real property actions and proceedings law, in relation to requiring a lender to ascertain the value of real property prior to commencing foreclosure proceedings.

A.B. 10378
Requires banks to defer mortgage payments of customers who are delinquent.

A.B. 10629
Allows right of redemption in foreclosure action brought against mortgagor's residence; provides such right must be exercised within one year of entering of judgment.

A.B. 10817
Substituted 6/23/08

S.B. 8143
Signed by governor 8/5/08, Chapter 472
Requires lender and mortgage loan servicers to give borrowers with high-cost home loans or higher-priced home loans notice before certain actions are taken; establishes all home loans shall be subject to certain standards and limitations; creates the crimes of residential mortgage fraud in the first, second, third, fourth and fifth degrees; relates to distressed property consulting contracts.

A.B. 11057

S.B. 7028
Requires prevailing party in foreclosure action to maintain property in safe and habitable condition; allows municipality to enforce this section.

S.B. 4850
Provides that the judgment of sale in a mortgage foreclosure action shall direct that in the event such premises is purchased collectively by more than one individual, the names of each individual purchaser shall be disclosed in writing to the sheriff of the county or referee conducting the sale.

S.B. 4851
Provides that the judgment of sale in a mortgage foreclosure action shall direct that payment by the purchaser be made by means of a bank officer's check or certified check.

S.B. 5188
Relates to foreclosure consultant abuse prevention; regulates the practices and services of persons engaging in activities relating to home loan defaults and mortgage foreclosures.

S.B. 5310

Establishes home mortgage emergency refinancing program administered by SONYMA for qualified buyers who are unable to meet payments on current high-cost home loans.

S.B. 6454
Allows modifications reducing federal adjusted gross income for the purposes of tax on personal income for amounts considered by the United States internal revenue service to be debt forgiveness regarding the sale by foreclosure proceeding of any taxpayer's primary residence.

S.B. 8151
Amends the real property actions and proceedings law, in relation to designating a party to accept service in the event a property becomes vacant during the foreclosure process.

H.B. 2230
S.B. 1793
Continues and expands the North Carolina housing finance agency's home protection program to every county in North Carolina.

H.B. 2461
Appropriates funds to the North Carolina State Bar to be used for the provision of legal services to low-income homeowners in North Carolina in order to help prevent foreclosure and home loss and preserve home equity.

H.B. 2462
Appropriates funds to the North Carolina housing finance agency to be used for the provision of housing counseling to help prevent foreclosure and home loss and preserve home equity among homeowners in North Carolina.

H.B. 2463
Signed by governor 8/17/08, Chapter 228
Requires mortgage services to send at least 45 days before foreclosure is initiated, a notice addressed to the borrower at the borrower's last known address with the following information: a.) An itemization of all past due amounts causing the loan to be in default. b.) An itemization of any other charges that must be paid in order to bring the loan current. c.) A statement that the borrower may have options available other than foreclosure, and that the borrower may discuss such options with the mortgage lender, the servicer, or a counselor approved by the U.S. Department of Housing and Urban Development. d.) The address, telephone number, and other contact information for the mortgage lender, the servicer, or the agent for either of them who is authorized to attempt to work with the borrower to avoid foreclosure. e.) The name, address, telephone number, and other contact information for one or more HUD-approved counseling agencies operating to assist borrowers in North Carolina to avoid foreclosure. f.) The address, telephone number, and other contact information for the consumer complaint section of the office of the commissioner of Banks. 

H.B. 2742

S.B. 2115
Creates an emergency program to reduce foreclosures and appropriates funds to enhance housing counseling in this state, prevent foreclosures of subprime loans, stimulate the housing market, and provide continued support of the housing finance agency.

H.B. 138
Signed by governor 6/11/08, Session Law 95
Enacts §2329.271 of the Revised Code to require purchasers of real property at a judicial sale to provide certain identifying information, allows municipal corporations to conduct inspections of property subject to a writ of execution, requires judicial sales to be confirmed within 30 days of sale, requires officers who sell real property at a judicial sale to file a deed within 14 days of confirmation, authorizes courts and county boards of revision to transfer certain tax delinquent lands subject to judicial foreclosure without appraisal or sale, permits a summary property description to be read at a judicial sale, and offers property that did not sell at a judicial sale to a political subdivision before forfeiture to the state.

H.B. 304
Amends §5747.01 of the Revised Code to exclude from income taxation discharges of indebtedness attributable to canceled residential mortgage obligations.

H.B. 359
Signed by governor 6/27/08, Session Law 126
Extends to all counties the authority to utilize surplus delinquent tax collections to facilitate nuisance abatement of deteriorated residential buildings in foreclosure and to terminate the temporary authority of a county with a population exceeding 1.2 million to use such collections to prevent residential mortgage foreclosures. 

H.B. 388
Extends to all counties the authority to utilize surplus delinquent tax collections to prevent residential mortgage foreclosures and to facilitate nuisance abatement of deteriorated residential buildings in foreclosure.

H.B. 440
Provides that a rental agreement does not terminate upon the foreclosure of the landlord's mortgage.

H.B. 626
Amends §2329.26 and enacts §5321.20 of the Revised Code to specify that, upon proper notice, a rental agreement for a residential property that is the subject of a foreclosure action converts to a month-to-month rental agreement unless that residential rental agreement was entered into after the initiation of foreclosure proceedings and notice of an ongoing foreclosure action and subsequent sale date is not provided, and creates penalties for a landlord or a successor in interest who violates the bill's provisions.

H.C.R. 24
Memorializes the Congress of the United States to pass the Mortgage Cancellation Relief Act of 2007.

S.B. 277
Passed Senate 5/29/08
Enacts §§1901.185 and 3767.50 of the Revised Code to create a new cause of action in foreclosure in the environmental or housing division of a municipal court to abate nuisance properties.

S.B. 295
Enacts §5321.20 of the Revised Code to provide that a rental agreement does not terminate upon the foreclosure of the landlord's mortgage.

S.B. 2132
Makes non-technical change to the reference to the "Oklahoma Power of Sale Mortgage Foreclosure Act."

S.B. 2195
Provides that any appraisal fees required of any party in a foreclosure proceeding shall be paid to the appraiser prior to the appraisal.

S.C.R. 52
Memorializes Congress to enact a Homeowners and Banks Protection Act.

H.B. 3621, Special Session
Provides that the effective and applicable dates, and the exceptions, special rules and coordination with the Internal Revenue Code, as amended, relative to those dates, contained in the Energy Independence and Security Act of 2007 (P.L. 110-140), the Mortgage Forgiveness Debt Relief Act of 2007 (P.L. 110-142), the Tax Increase Prevention Act of 2007 (P.L. 110-166), the Tax Technical Corrections Act of 2007 (P.L. 110-172) and other federal law amending the Internal Revenue Code apply for Oregon personal income and corporate excise and income tax purposes, to the extent they can be made applicable, in the same manner as they are applied under the Internal Revenue Code and related federal law.

H.B. 3630, Special Session
Signed by governor 3/11/08, Chapter 19
Imposes duties and restrictions on foreclosure consultants. Requires that provision of foreclosure consulting services to homeowners be pursuant to written contract. Makes violation of foreclosure consulting laws unfair trade practice. Makes violation of foreclosure consulting laws criminal offense with maximum penalty of one year's imprisonment, $10,000 fine, or both. Applies to agreements for foreclosure services homeowner enters into 90 or more days after effective date of Act. Imposes duties and restrictions on equity purchasers. Requires that conveyance of homeowner equity in residence in foreclosure be pursuant to written contract. Makes violation of equity conveyance laws unlawful practice. Makes violation of equity conveyance laws criminal offense with maximum penalty of one year's imprisonment, $10,000 fine, or both. Creates private cause of action for damages arising from violation of equity conveyance laws. Applies to equity conveyance agreements equity seller enters into seven or more days after effective date of Act. Requires sending of notice of home loss danger to grantor of trust deed in residential property for which notice of foreclosure is filed. Requires that notice of home loss danger contain telephone numbers for grantor access to loan information and consultant services. Specifies effect of failure to send notice of home loss danger. Applies to residential trust deed properties for which statutory notice of sale is sent 90 or more days after effective date of Act. Requires Department of Consumer and Business Services to adopt rules specifying statewide telephone contact number and Website address where grantors of residential trust deeds receiving notice of home loss danger may find possible sources of information and assistance.

S.B. 1081, Special Session
Signed by governor 3/11/08, Chapter 45
Provides that the effective and applicable dates, and the exceptions, special rules and coordination with the Internal Revenue Code, as amended, relative to those dates, contained in the Energy Independence and Security Act of 2007 (P.L. 110-140), the Mortgage Forgiveness Debt Relief Act of 2007 (P.L. 110-142), the Tax Increase Prevention Act of 2007 (P.L. 110-166), the Tax Technical Corrections Act of 2007 (P.L. 110-172) and other federal law amending the Internal Revenue Code apply for Oregon personal income and corporate excise and income tax purposes, to the extent they can be made applicable, in the same manner as they are applied under the Internal Revenue Code and related federal law. 

H.B. 39

Provides for the Homeowner's Emergency Assistance Program; and provides for biennial foreclosure study.

H.B. 40

Provides for prohibited acts and practices with respect to residential mortgages; further provides for attorney fees; and provides for foreclosure and other legal actions.

H.B. 162

Allocates a percentage of the net proceeds from all unclaimed funds from sheriffs' sales of residential real property to the Pennsylvania Housing Finance Agency for the purpose of assisting potential homebuyers with the financing and purchase of homes at sheriffs' sales. Establishes the Sheriffs' Sales Homeownership Assistance Fund and the Sheriffs' Sales Homeownership Assistance Program.

H.B. 1080

With regard to foreclosure, default, right to cure a default and confession of judgment, nothing contained in this act shall be deemed to supersede section 403, 404 or 407 of the act of January 30, 1974 (P.L.13, No.6), referred to as the Loan Interest and Protection Law, which shall apply to all loans made pursuant to this act. Provides that the lien granted or provided in connection with a secondary mortgage loan shall not be deemed to constitute a sale of the property with regard to any prior existing lien, for the purpose of permitting foreclosure of or execution on such prior lien.

H.B. 1083

Passed House 4/8/08

Provides for the Homeowner's Emergency Assistance Program, for notice and institution of foreclosure proceedings, for notice requirements, for assistance payments and for repayment; and provides for an ongoing foreclosure study.

H.B. 1384

Authorizes that the board may annually authorize a transfer from the unrestricted net assets of the agency's funds to the Homeowner's Emergency Mortgage Assistance Fund. The amount of funds transferred shall not exceed one percent of the total unrestricted net assets of the agency as certified in the annual financial statement under section 207 and provided that such assets are not required to meet the agency's debt obligations and that such transfers are not in violation of the terms of bond resolutions and indentures.

H.B. 1774

Provides for the creation of land banks for the conversion of vacant or tax-delinquent properties into productive use.

H.B. 2403

Provides for viable alternatives to mortgage foreclosure.

H.B. 2445

Amends the Municipalities Generally Code. Provides for neighborhood blight reclamation and revitalization. establish a process as set forth under this chapter to effectively deal with blighted and abandoned properties in order to bring the properties up to code standards, acquire and demolish them or, where cost-effective and structurally sound, rehabilitate them and return them to productive use.

H.B. 2600

Passed House 10/6/08

Establishes the Pennsylvania Housing Affordability and Rehabilitation Enhancement Program to do projects such as providing mortgage or rental assistance including housing counseling, foreclosure prevention and refinancing products.

H.B. 2601

Amends the Housing Finance Agency Act of 1959. Makes an appropriation to reimburse the agency for losses incurred in connection with its subprime and predatory mortgage abatement programs that are targeted at homeowners at risk of foreclosure with either adjustable rate mortgages or mortgages which exceed the current value of their homes.

H.B. 2602

Establishes a foreclosure prevention program.

H.B. 2694

Provides for original jurisdiction and venue of the courts of common pleas; and provides for mortgage foreclosures.

H.R. 418

Memorializes Congress to take emergency action to protect homeowners and banks and enact a Homeowners and Banks Protection Act.

S.B. 486
Signed by governor 7/8/08, Act 60
Provides for the Homeowner's Emergency Assistance Program, for notice and institution of foreclosure proceedings, for notice requirements, for assistance payments and for repayment; and provides for an ongoing foreclosure study.

S.B. 1400

Passed Senate 10/6/08

Establishes the Pennsylvania Housing Affordability and Rehabilitation Enhancement Program to do projects such as providing mortgage or rental assistance including housing counseling, foreclosure prevention and refinancing products.

S.B. 1401

Amends the Housing Finance Agency Law, establishes a foreclosure prevention program; and makes an appropriation.

H.B. 7149
Became law without governor's signature 7/4/08, Chapter 238
Requires foreclosure deeds to be recorded within 30 days of the foreclosure sale and also requires that all outstanding real estate taxes be paid at the time of the recording of the foreclosure deed. In addition it changes the interest rate that mortgagees must pay an escrow from four percent to the interest rate.

H.B. 7294
Requires foreclosure deeds to be recorded within 30 days of the foreclosure sale and also requires financial institutions who are successful bidders at the foreclosure sale to create escrow accounts for the payment of outstanding real estate taxes.

H.B. 7327
Vetoed by governor 7/2/08
Establishes the Rhode Island foreclosed property upkeep act.

H.B. 7376
Adopted 3/4/08, Resolution 92
Memorializes the United States Congress to take emergency action to protect homeowners and banks.

H.B. 7469
Became law without governor's signature 7/4/08, Chapter 352
Limits the amount of time that passes between the date of the first mortgage foreclosure advertisements and the date of the actual foreclosure auction sale. Resolves any ambiguity regarding advertising of mortgage foreclosure sales and allows for the possibility of a fourth mortgage foreclosure advertised notice.

H.B. 7517
Vetoed by governor 7/1/08
Provides that mortgage foreclosure consultants be called certified personal finance consultants. This act further creates a board of certified personal finance consultants to regulate such profession.

H.B. 7518
Requires foreclosure deeds to be recorded within 30 days of the foreclosure sale with the failure to do so rendering the sale null and void. This act also establishes a monthly periodic tenancy, subject to the provisions of the "residential landlord and tenant act," for bona fide tenants of a mortgagor.

H.B. 7892
Requires a mortgagee to notify tenants of the date, time and place of a foreclosure sale along with contact information for Rhode Island Legal Services and HUD approved counseling agencies in Rhode Island. It also requires that any successor in interest to a foreclosed mortgagor continue to provide essential services such as heat, running water, hot water, electric or gas if the foreclosed mortgagor had provided said services prior to foreclosure. This act requires a successor in interest to a foreclosed mortgagor to give tenants written notice to quit at least 60 days in advance

S.B. 2057
Became law without governor's signature 7/8/08, Chapter 309
Requires foreclosure deeds to be recorded within 30 days of the foreclosure sale and also requires that all outstanding real estate taxes be paid at the time of the recording of the foreclosure deed. In addition it changes the interest rate that mortgagees must pay an escrow from four percent to the interest rate.

S.B. 2110
Requires a mortgagee to notify tenants of the date, time and place of a foreclosure sale along with contact information for Rhode Island Legal Services and HUD approved counseling agencies in Rhode Island. It also requires that any successor in interest to a foreclosed mortgagor continue to provide essential services such as heat, running water, hot water, electric or gas if the foreclosed mortgagor had provided said services prior to foreclosure. This act requires a successor in interest to a foreclosed mortgagor to give tenants written notice to quit at least 60 days in advance.

S.B. 2252
Adopted 2/27/08, Resolution 71
Memorializes the United States Congress to take emergency action to protect homeowners and banks.

S.B. 2325
Became law without governor's signature 7/8/08, Chapter 369
Provides a technical amendment to resolve any ambiguity regarding advertising of a mortgage foreclosure sale.

S.B. 2504
Grants temporary 90 day right to cure a foreclosure to owner occupied residential homeowners, who become delinquent in their mortgage payments.

S.B. 2712
Requires foreclosure deeds to be recorded within 30 days of the foreclosure sale with the failure to do so rendering the sale null and void. This act also establishes a monthly periodic tenancy, subject to the provisions of the "residential landlord and tenant act," for bona fide tenants of a mortgagor.

H.B. 4616
Provides for a six-month moratorium on the foreclosure of certain mortgages secured by residential real estate located in South Carolina.

H.B. 2963

S.B. 3535
Establishes the Homeowner's Emergency Mortgage Assistance Fund and delays foreclosure actions under specific circumstances.

H.B. 3133

S.B. 3251
Defines "foreclosure consultant"; requires foreclosure consultants to provide homeowners with certain contracts.

H.B. 3330

S.B. 3567
Creates six-member special joint study committee on home loan foreclosures.

H.B. 3748
Signed by governor 4/10/08, Public Chapter 743
S.B. 3337
Allows notice of foreclosure to be sent to debtor at address designated by debtor in any loan document, correspondence, or information from the creditor, and if none, then last known address; allows notice of foreclosure to be sent to debtor at location of the property unless property is vacant, commercial or debtor has designated different address.

H.B. 3806

S.B. 3550
Requires that there be published a 30-day notice for a judicial or trust sale, instead of a 20-day notice, and that a study be conducted by the secretary of state regarding placement on its Web site of notices for foreclosure throughout the state.

H.B. 3988

S.B. 3852
Requires notice of sale of land pursuant to forecloser or judicial order be sent to debtor's last known residence at least 30 days prior to the sale rather than 30 days prior to the publication date, where land to be sold is different from debtor's address.

H.R. 404
Urges governor to develop and implement an emergency mortgage assistance program.

H.J.R. 49
Adopted 5/3/08
Urges Congress to adopt an emergency bank and homeowner protection act. 

H.B. 408
Signed by governor 3/8/08, Chapter 485
Makes persons participating in or servicing foreclosure rescues for profit with the intent to defraud a consumer a violation of the Virginia Consumer Protection Act.

H.B. 947
Incorporated into H.B. 408 2/8/08
Provides protection for homeowners during the foreclosure process by requiring persons who advertise services to assist persons to escape foreclosure to disclose fully the nature of their services and the homeowners' right to rescind a contract entered into with such persons. Also allows the attorney general to enforce any violation of this article and provides that a violation of the article is a Class 5 felony.

S.B. 797
Signed by governor 4/23/08, Chapter 878
Requires high-risk mortgage lenders or servicers to provide written notice of the intention to send a notice to accelerate the loan balance 10 business days prior to sending the notice of acceleration. If the borrower indicates the desire to avoid foreclosure, the high-risk mortgage lender or servicer shall give the borrower 30 calendar days' forbearance. The measure does not apply if the lender makes fewer than four mortgage loans in any 12-month period, if there is an active bankruptcy proceeding, or if a foreclosure sale is scheduled to occur within 30 days. 

H.B. 2562
Provides that, for foreclosure sales on deeds of trust, if the trustee elects to foreclose the interest of any occupant or tenant of property comprised solely of a single family residence, or a condominium, cooperative, or other dwelling unit in a multiplex or other building, contact information for obtaining purchaser contact information, as well as an address to which occupants and tenants shall continue to send lease payments after the sale until notified differently by the purchaser, must be provided as part of the following notice that must be included as Part X of the Notice of Trustee's Sale. Provides that the purchaser, on a deed of trust foreclosure, has the right to evict occupants and tenants by summary proceedings under the unlawful detainer act as follows: (1) For an occupant or tenant who at the time of the sale is in compliance with the duties of tenants specified in RCW 59.18.130 and who continues to be in compliance with RCW 59.18.130 while occupying the property: (a) After the 120^th day following the sale or the expiration of the lease, whichever occurs first, if the occupant or tenant has a written or recorded rental agreement; or (b) after the 90^th day following the sale if the occupant or tenant does not have a written or recorded rental agreement; or (2) For an occupant or tenant who at the time of the sale is not in compliance with the duties of tenants specified in RCW 59.18.130, after the 20^th day following the sale.

H.B. 2791
Signed by governor 3/31/08, Chapter 278
S.B. 6431
Requires a distressed property purchaser and foreclosed homeowner to enter into a distressed property reconveyance in the form of a written contract. Establishes the contract requirements. Makes a violation of the chapter a violation of the consumer protection act.

S.B. 6383
Provides that, in an unlawful detainer action involving a distressed property: (1) The plaintiff shall disclose to the court whether the defendant previously held title to the distressed property, and explain how the plaintiff came to acquire title; (2) A defendant who previously held title to the distressed property shall not be required to escrow any money pending trial when a material question of fact exists as to whether the plaintiff acquired title from the defendant directly or indirectly through a distressed property conveyance; (3) There must be both an automatic stay of the action and a consolidation of the action with a pending or subsequent quiet title action when a defendant claims that the plaintiff acquired title to the distressed property through a distressed property conveyance.

S.B. 6695
Defines "distressed home" to mean a home in danger of foreclosure or in the process of being foreclosed. Provides that a distressed home consulting transaction must adhere to certain requirements. Provides the duties of a distressed home consultant. Provides that a violation under this act is an unfair method of competition and in a private right of action, a court may double or triple the award of damages.

S.B. 6711
Signed by governor 4/1/08, Chapter 322
Establishes the smart homeownership choices program in the Department of Financial Institutions to assist low-income and moderate-income households facing foreclosure. Makes an appropriation from the general fund solely for deposit in the smart homeownership choices program account. Requires the department of financial institutions to enter into an interagency agreement with the Washington state housing finance commission to implement and administer the program. Requires the Washington state housing finance commission to assist homeowners who are delinquent on their mortgage payments to bring their mortgage payments current in order to refinance into a different loan product.

H.B. 4563
Updates the foreclosure process on trust deeds; including procedures for foreclosure on bank and nonbank loans and right of reinstatement; fiduciary duties of trustees owed to both parties; information required to be on notice of sale; requires all sales to be under supervision of a resident of the state; substitute trustees; and eligibility of trustees.

S.B. 203
Updates the foreclosure process on trust deeds; including procedures for foreclosure on bank and nonbank loans and right of reinstatement; fiduciary duties of trustees owed to both parties; information required to be on notice of sale; requires all sales to be under supervision of a resident of the state; substitute trustees; and authorizes the commissioner of Banking to determine eligibility of trustee.

Addresses foreclosure reconveyances and foreclosure consultants.

S.B. 298
Failed to concur in pursuant to Senate Joint Resolution 1 3/21/08
Addresses foreclosure reconveyances and foreclosure consultants.