| State: |
Bill Summary: |
| Arizona |
H.B. 2040
Signed by governor 6/13/07, Chapter 243
Designates, as residential mortgage fraud, the receipt of any proceeds or other monies in connection with a residential mortgage loan, in addition to either of the following, with intent to defraud: a) knowingly making, using or facilitating the use of any deliberate misstatement, misrepresentation or material omission during the mortgage lending process that is relied on by a mortgage lender, borrower or other party to the mortgage lending process or b) filing or causing the filing with the office of the county recorder of any residential mortgage loan document that the person knows to contain a deliberate misstatement, misrepresentation or material omission. Classifies residential mortgage fraud as: a) a class 4 felony or b) a class 2 felony, if a person engages or participates in a pattern of residential mortgage fraud or conspires to engage or participate in a pattern of residential mortgage fraud. Prohibits an offense involving residential mortgage fraud from being based solely on information that is lawfully disclosed under federal disclosure laws, regulations and interpretations related to the mortgage lending process. Defines: a) mortgage lending process, b) pattern of residential mortgage fraud, and c) residential mortgage loan. |
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S.B. 1221
Passed Senate 2/21/07
Designates the commission of any of the following acts, with the intent to defraud, as residential mortgage fraud: a) knowingly making, using or facilitating the use of any deliberate misstatement, misrepresentation or material omission during the mortgage lending process that is relied on by a mortgage lender, borrower or other party to the mortgage lending process; b) receiving any proceeds or other monies in connection with a residential mortgage that the person knows resulted from the knowing use of or facilitation of the use of a deliberate misstatement, misrepresentation or material omission, or c) filing or causing the filing with the office of the county recorder of any residential mortgage loan document that the person knows to contain a deliberate misstatement, misrepresentation or material omission. Classifies mortgage fraud as: a) a class 4 felony or b) a class 2 felony, if a person engages or participates in a pattern of residential mortgage fraud or conspires to engage or participate in a pattern of residential mortgage fraud. Prohibits an offense involving residential mortgage fraud from being based solely on information that is lawfully disclosed under federal disclosure laws, regulations and interpretations related to the mortgage lending process. Defines: a) mortgage lending process, b) pattern residential and c) residential mortgage loan. |
| Colorado |
H.B. 1322
Signed by governor 6/1/07, Chapter 386
Adds definitions of the terms "borrower" and "residential mortgage loan" to the statutes governing mortgage brokers. Clarifies the application of the "Mortgage Broker Registration Act" to residential mortgage loans. Eliminates the exemption for federal housing administration (FHA)-approved mortgagees and appointed FHA correspondents. Specifies that a mortgage broker has a duty of good faith and fair dealing in all communications and transactions with a borrower. Prohibits a mortgage broker from recommending or inducing the borrower to enter into a transaction that does not have a reasonable, tangible net benefit to the borrower, as defined by rules of the director of the division of real estate (director). Gives the director additional rule-making authority and the authority to assess administrative fines of up to $1,000 for a first offense and $2,000 for subsequent offenses. Requires a mortgage broker to make an inquiry about, and to take into consideration, the borrower's current and prospective income and other factors prior to recommending, brokering, or originating a residential mortgage loan. Requires certain disclosures and prohibits the use of specified acts or practices, including those deemed unconscionable. Incorporates requirements of federal laws, including the "Real Estate Settlement Procedures Act". Establishes rules of conduct for situations in which a person acts as both a mortgage broker and a real estate broker or salesperson. Limits fees. In provisions relating to false and deceptive inducements to the creation of a mortgage loan by a mortgage broker or mortgage originator, adds mortgage lenders, mortgage loan applicants, real estate appraisers, and closing agents to the persons to whom the prohibitions apply. Reduces the mental state required to be proven in an action for violation of anti-fraud provisions from "knowingly" to "knew or reasonably should have known". Invokes the authority of the attorney general under the "Colorado Consumer Protection Act" to investigate and punish misconduct by mortgage brokers. Allows the attorney general to seek injunctions against persons violating anti-fraud provisions, prohibiting them from conducting further business for up to five years. Appropriates $495,084 and 2.5 FTE to the division of regulatory agencies and $383,206 and 4.0 FTE to the department of law for implementation of the act. Appropriates $297,288 and 1.7 FTE to the department of public safety, Colorado Bureau of Investigation, from fingerprint processing fees for expenses related to criminal history record checks. |
| Florida |
H.B. 349
Died in committee 5/4/07
Creates the Florida Residential Mortgage Fraud Act; provides legislative findings and declarations; specifies criteria for committing offense of said fraud; provides exception; provides for venue of committed offense; authorizes certain investigative agencies to investigate and prosecute cases of said fraud; provides for civil forfeiture of property under certain circumstances; reenacts specified provision regarding definition of "racketeering activity." |
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H.B. 1125
Substituted 4/30/07
Regulates mortgage brokering and lending; authorizes Financial Regulation Office to impose fines; authorizes office to take certain adverse actions on permits of certain mortgage business schools; authorizes office to offer professional continuing education programs; authorizes borrower to waive notification under certain circumstances; specifies criteria for committing offense of mortgage fraud. |
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S.B. 240
Combined with S.B. 352 3/13/07
Creates the Florida Residential Mortgage Fraud Act; provides legislative findings; describes offense of residential mortgage fraud and provides penalties therefor and enhanced penalties when there is pattern of residential mortgage fraud; defines terms; describes venue for such offenses. |
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S.B. 352
Died in messages 5/4/07
Creates the Florida Residential Mortgage Fraud Act; provides legislative findings and declarations; provides definitions; specifies criteria for committing offense of residential mortgage fraud; provides for venue of committed offense; provides penalties; authorizes certain investigative agencies to investigate and prosecute cases of said fraud; provides for civil forfeiture of property under certain circumstances, etc. |
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S.B. 1824
Signed by governor 6/19/07, Chapter 182
Authorizes Financial Regulation Office to impose fines; provides for review of testing process; provides additional disclosure requirements for mortgage brokerage businesses; authorizes borrower to waive notification under certain circumstances; provides for application of certain provisions to said businesses; specifies elements of offense of mortgage fraud; provides for venue regarding committed offense. |
| Georgia |
S.R. 627
Passed Senate 4/13/07
Commends the St. Marlo Fraud Coalition and the other individuals named herein for their outstanding work in investigating and successfully prosecuting mortgage fraud. |
| Illinois |
S.B. 1464
Signed by governor 8/28/07, Public Act 95-0508
Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that no person may send marketing materials to a consumer indicating that the person is connected to the consumer's mortgage company, indicating that there is a problem with the consumer's mortgage, or stating that the marketing materials contain information concerning the consumer's mortgage, unless that person sending the marketing materials is actually employed by the consumer's mortgage company or an affiliate of the consumer's mortgage company. |
| Iowa |
H.F. 521
Relates to financial crimes by providing for the establishment of specialized units in the departments of justice and public safety. New Code §13.35 requires the attorney general to establish a financial crimes unit in the department of justice to prosecute and assist county attorneys in the prosecution of such crimes. In addition, the unit is required to work with financial institutions in detecting financial crimes and with the financial crimes unit established in the department of public safety pursuant to the bill. The term "financial crimes" is defined to mean crimes primarily involving financial matters and includes but is not limited to health care fraud, mortgage fraud, check fraud, money laundering, telemarketing fraud, identity theft, and terrorism financing. Amends Code §80.9, relating to the duties of the department of public safety, to require the department to maintain a financial crimes unit to specialize in investigating financial crimes and enforcing the laws to address financial crimes and to assist local law enforcement in such investigations and enforcement activities. The definition of the term "financial crimes" used in new Code §13.35 is incorporated by reference. Implementation of both units is made subject to the availability of funding. The bill provides FY 2007-2008 appropriations from the general fund of the state to both departments for purposes of the units. |
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S.F. 313
Becomes S.F. 541 3/13/07
Establishes a mortgage lending fraud prosecution surcharge and fund. A surcharge in the amount of $1 shall be assessed by the county recorder when a mortgage or deed of trust is recorded. The surcharge amounts, less an administrative charge, shall be transmitted monthly to the treasurer of state, who shall deposit the funds into a mortgage lending fraud prosecution fund established for the investigation and prosecution of frauds related to mortgage lending. |
| Massachusetts |
H.B. 4085
See H.B. 4306 10/18/07
Draws upon the recommendations of the Mortgage Summit Group, a partnership of 50 participants with a wide range of expertise—from non-profit agencies, government agencies and the mortgage lending industry. The bill criminalizes mortgage fraud in the Commonwealth; creates a centralized statewide foreclosure database of foreclosure activity to monitor and analyze foreclosures and foreclosure patterns at the Division of Banks; and mandates that mortgage holders file a 90-day notice of intent to foreclose with the homeowner and the Division of Banks. Finally, this bill requires mortgagees to receive consumer counseling prior to obtaining nonconforming variable rate mortgage loans. |
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S.B. 2296
Substituted by H.B. 4306 7/24/07
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. |
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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. |
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S.B. 2382
Substituted by H.B. 4306 10/25/07
Establishes a program to develop employer assisted housing; ensures responsible mortgage lending practices in the commonwealth; relates to licensure of and criminal background checks for mortgage loan originators; relates to performance ratings of mortgage lenders; relates to subprime lending at variable or adjustable rates; relates to advertising practices of mortgage lenders; relates to breach of a mortgage contract and residential mortgage fraud; relates to real estate appraisal and appraisers; provides for notice procedures when instituting foreclosure procedures; requires the commissioner of Banks to maintain a foreclosure database; criminalizes mortgage fraud in the Commonwealth. |
| Michigan |
H.B. 4409
Prohibits residential mortgage fraud. |
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H.B. 4410
Enacts sentencing guidelines for the crime of residential mortgage fraud. |
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H.B. 4411
Prohibits residential mortgage fraud. |
| Minnesota |
H.F. 851
S.F. 797
Prohibits residential mortgage fraud; prescribes criminal penalties. |
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H.F. 931
Indefinitely postponed 5/2/07
S.F. 988
Signed by governor 5/14/07, Chapter 74
Prohibits certain predatory lending practices; prohibits residential mortgage fraud; prescribes criminal penalties; provides remedies. |
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H.B. 1748
S.F. 1547
Relates to residential mortgage lending; modifies licensing and education requirements; prohibits predatory lending practices; prohibits residential mortgage fraud; provides examination powers to the commissioner; prescribes a criminal penalty. |
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H.F. 2305
Appropriates money to Department of Commerce and Public Utilities Commission to finance energy-related activities; provides for grants and fund transfers; modifies provisions relating to mortgage companies and licensees; increases registration fee for credit services organizations; prohibits residential mortgage fraud; provides civil penalties. |
| Mississippi |
H.B. 681
Died on calendar 2/8/07
Creates a new section to create the criminal offense of residential mortgage fraud and prescribes the penalties therefore. |
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H.B. 1034
Died on calendar 3/27/07
Provides a surcharge on deed of trust filings for mortgage lending fraud prosecution; creates the mortgage lending fraud prosecution fund. |
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S.B. 2350
Signed by governor 4/21/07, Chapter 581
Creates a new section to create the criminal offense of residential mortgage fraud and prescribes the penalties therefore. |
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S.B. 3000
Died on calendar 3/9/07
Provides a surcharge on deed of trust filings for mortgage lending fraud prosecution; creates the mortgage lending fraud prosecution fund. |
| Missouri |
S.B. 560
Criminalizes the act of committing residential mortgage fraud with the intent to defraud. An individual commits the crime by engaging in the following practices: a) Knowingly making a misrepresentation or omission during the mortgage lending process. b) Knowingly using or facilitating the use of a misrepresentation or omission during the mortgage lending process. c) Reaping any benefit from the making, using, or facilitating the use of such misrepresentation or omission. d) Filing or causing to be filed any document in connection with a mortgage containing a deliberate misstatement, misrepresentation, or omission. Those in violation are guilty of a Class D felony. Those who engage in a pattern of this type of fraud are guilty of a Class B felony. |
| Nevada |
A.B. 440
Signed by governor 6/13/07, Chapter 492
Establishes the crime of mortgage lending fraud, which is a category C felony. Provides that a person who engages in a pattern of mortgage lending fraud is guilty of a category B felony. Furthermore, if a lender commits mortgage lending fraud, the borrower may rescind the transaction within two years after the transaction has been completed. |
| New York |
S.B. 2746
Passed Senate 3/19/07
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 notice; further establishes the crime of mortgage fraud in the first and second degree. |
| North Carolina |
H.B. 817
Signed by governor 7/4/07, Chapter 163
Enacts the North Carolina Residential Mortgage Fraud Act. |
| Pennsylvania |
H.B. 2037
Provides for damages for misrepresentation of home loan principal, outstanding balance or interest. |
| Texas |
H.B. 716
Signed by governor 6/15/07, Chapter 285
Amends the Government Code relating to mortgage fraud by creating the residential mortgage fraud task force (task force) that is comprised of various agencies, including the Texas Real Estate Commission and the Texas Department of Insurance, and that is overseen by the Office of the Attorney General (OAG). The bill requires the task force to submit an annual report to the governor, lieutenant governor, and speaker of the House of Representatives that details the progress of agencies in accomplishing the mission of the task force. This bill also requires a person who determines or reasonably suspects fraudulent activity to report the information to an authorized governmental agency, as defined by the bill. The bill requires certain agencies to assist a prosecuting attorney in the investigation of an offense prescribed by the bill and authorizes the OAG to prosecute an offense that involves mortgage fraud under certain circumstances. |
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H.B. 2204
Relates to residential mortgage fraud; provides criminal penalties. |
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H.B. 3151
Relates to a mortgage fraud task force to study mortgage fraud in this state. |
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S.B. 1307
Relates to residential mortgage fraud; imposes a fee on residential mortgage loans; provides criminal penalties. |
| Utah |
H.B. 25
Passed House 1/26/07
Directs the attorney general to employ a real estate fraud prosecutor and two investigators; enacts the Real Estate Fraud Act including: creating the crime of real estate fraud; and penalties; and includes real estate fraud as an illegal activity under the Pattern of Illegal Activity Act. |
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