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House Bill 1637


House Bill 1637

ARCHIVE (2009)

Latest Information

 

DIGEST OF HB1637 (Updated April 15, 2009 2:24 pm - DI 84)


Mortgage foreclosures. Provides that in the case of a residential mortgage transaction in which the debtor defaults after June 30, 2009, the creditor shall, before filing an action for foreclosure, provide a presuit notice to the debtor that informs the debtor that the creditor intends to initiate foreclosure proceedings, that the debtor may obtain assistance from a foreclosure counselor, and that provides information on how to contact a counselor. Establishes certain exceptions to the presuit notice requirement. Provides that, if a creditor files an action for foreclosure, the creditor shall include with the complaint a notice to the debtor that informs the debtor of the debtor's right to participate in a settlement conference, and that if the debtor wishes to participate in a settlement conference, the debtor must contact the court not later than 30 days after notice is served. Provides that a court may not render a judgment of foreclosure until 60 days after the notice is filed, unless the premises are vacant. Specifies that, if a settlement conference is conducted: (1) it must be scheduled between 25 and 60 days after the notice is sent; (2) the debtor must contact a foreclosure counselor before the conference and bring certain documents to the conference; (3) the creditor must bring a complete transaction history to the conference; (4) the creditor's agent must have the authority to negotiate with the creditor; and (5) the conference will be conducted by telephone unless the parties make a contrary stipulation. Provides that the court may require any person who is a party to the action to participate in a settlement conference, and that the court may reconvene a settlement conference. Requires the creditor to file a copy of the foreclosure prevention agreement with the court if the parties reach an agreement, and provides that a foreclosure action may be stayed or dismissed for as long as the debtor complies with the terms of the foreclosure agreement. Specifies that if a foreclosure is dismissed and the debtor defaults in the terms of the foreclosure agreement, the creditor may bring a new foreclosure action without being required to send certain notices. Provides that participation in a settlement conference satisfies any mediation or alternative dispute resolution requirement established by court rule. Makes other changes and conforming amendments. Provides that certain notice of foreclosure requirements apply to all mortgagees. Requires a foreclosure consultant to retain certain records for a specific time. Allows certain licensing boards to require practitioners to pay real estate appraisal costs in certain administrative actions. Prohibits certain professional licensing boards from accepting the surrender of a practitioner's license if the attorney general has filed a complaint against the practitioner and opposes the surrender. Provides that a broker or salesperson licensee who violates the credit services organizations or mortgage rescue protection fraud provisions is subject to certain disciplinary actions. Prohibits a person from: (1) engaging in real estate transactions or consumer credit mortgage transactions without a permit or license; or (2) misrepresenting certain terms and characteristics of real estate transactions and consumer credit mortgages; and subjects a person who violates any of these prohibitions to certain penalties under the home loan practices law. Removes language prohibiting a person from engaging in a deceptive act in connection with certain loans. Creates a $50 court fee, on persons filing an action to foreclose a mortgage, applicable to actions filed after June 30, 2009, and before January 1, 2013, for purposes of providing sufficient money to provide foreclosure prevention counseling and assistance programs.
Current Status:
 In Conference Committee
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