2003 Mortgage Fraud Legislation
Last Updated: December 7, 2007
Enactments are noted in italics
NCSL Staff Contact: Heather Morton, (303) 364-7700, Denver
| State: |
Bill Summary: |
| Indiana |
H.B. 1655
Restricts certain lending acts and practices. Establishes the mortgage fraud unit under the attorney general. Increases the bond requirements and certain fees for loan brokers. Provides that the securities commissioner may issue certain remedial orders against loan brokers. Allocates fee revenue to the housing finance authority and the mortgage fraud unit for education and enforcement activities. Appropriates seventy-five thousand dollars to conduct a study of mortgage foreclosure rates in Indiana. Provides limits on assignee liability. |
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H.B. 1698
Transfers licensing and regulation of loan brokers to the department of financial institutions. Restricts certain lending acts and practices. Establishes the mortgage fraud unit under the attorney general. Increases mortgage recording and loan broker registration and renewal fees. Requires the housing finance authority to provide mortgage literacy training programs. Allocates increased revenue to the housing finance authority and the mortgage fraud unit. |
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H.B. 1841
Restricts certain lending acts and practices. Establishes the mortgage fraud unit under the attorney general to enforce this act and investigate violations. Preempts regulation of covered acts and practices by political subdivisions. Increases mortgage recording fees and loan broker registration and renewal fees. Allocates increased revenue to the department of education, secretary of state, attorney general, and county recorders. |
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S.B. 478
Restricts certain lending acts and practices. Establishes the mortgage fraud unit under the attorney general to investigate and bring actions against a lender who engages in mortgage fraud. Preempts regulation of covered acts and practices by political subdivisions. Increases mortgage recording fees. Allocates increased revenue to the Indiana housing finance authority, attorney general, and county recorders. Allows the securities commissioner to enter orders of recission, restitution, and disgorgement, including interest at the rate of 8% to loan brokers. |
| Maryland |
H.B. 521
Signed by governor 5/22/03, Chapter 435
S.B. 583
Passed Senate 4/3/03
Requires licensed or certified real estate appraisers to file quarterly reports containing the address and appraised value of specified residential real estate in Baltimore City with the Baltimore City Department of Housing and Community Development; requires the reports to be open for inspection only to representatives of government agencies for investigation of fraudulent practices. |
| New York |
A.B. 5057
Enacts the Home Equity Fraud Act to control improper activities by home improvement contractors and finance companies; prohibits mortgage brokers or agents from acting as home improvement contractors; provides additional protections for mortgagors and home owners. |
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A.B. 6873
Makes a scheme to defraud a person in obtaining a credit loan secured by an interest in real property a felony; applies to reverse redlining situations; provides for various felony grades depending on the amount of money involved. |
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S.B. 4389
Relates to unauthorized entities, unregistered mortgage brokers and mortgage fraud; establishes additional penalties against unlicensed or unregistered persons or entities engaging in activities after receiving a cease and desist order; further establishes the crime of mortgage fraud in the first and second degree. |
| Virginia |
S.B. 1103
Signed by governor 3/16/03, Chapter 386
Contains recommendations of the Virginia Housing Study Commission to strengthen consumer protection measures in the Mortgage Lender and Broker Act. Allows the State Corporation Commission (SCC) to suspend individuals convicted of fraud or other crimes from working in the mortgage lending industry, and requires registered lenders and brokers to file with the SCC a notice of the filing of bankruptcy, denial or revocation of opportunity to engage in business in another state, or felony indictments. |
| Washington |
H.B. 1081
Signed by governor 5/14/03, Chapter 289
S.B. 5118
Provides that a surcharge of $1 shall be charged by the county auditor at the time of recording of each deed of trust, which will be in addition to any other charge authorized by law. The auditor may retain up to five percent of the funds collected to administer collection. Requires the remaining funds to be transmitted monthly to the state treasurer who will deposit the funds into the mortgage lending fraud prosecution account created in this act. Provides that the department of financial institutions is responsible for the distribution of the funds in the account and shall, in consultation with the attorney general and local prosecutors, develop rules for the use of these funds to pursue criminal prosecution of fraudulent activities within the mortgage lending process. Declares that the surcharge imposed in this act does not apply to assignments or substitutions of previously recorded deeds of trust. Requires that, before December 31st of every year, the Department of Financial Institutions shall provide the Senate and House of Representatives committees that address matters related to financial institutions with a written report outlining the activity of the mortgage lending fraud prosecution account. |
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