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House Bill 1402


House Bill 1402

ARCHIVE (2013)

Latest Information

 

DIGEST OF INTRODUCED BILL


Refinancing of underwater mortgages. Establishes the underwater mortgage refinancing program (program). Defines "underwater mortgage" as a mortgage in which the outstanding balance owed by the debtor exceeds the market value of the mortgaged property, as determined by an appraisal. Requires the department of financial institutions (department) to adopt guidelines to implement the program. Provides that the program must be available on a voluntary basis to approved creditors. Provides that to qualify as an approved creditor for the program, a creditor must: (1) offer in Indiana to refinance qualifying underwater mortgages made by another creditor; and (2) maintain on file with the department a certification attesting to the creditor's compliance with specified program requirements. Provides that for purposes of the program, a qualifying underwater mortgage must satisfy certain conditions. Provides that in determining whether an underwater mortgage satisfies the conditions, a creditor: (1) may rely on information provided, or representations made, by the debtor; and (2) is not liable for the negligence or malfeasance of the debtor or any other person in connection with the information provided or the representations made. Provides the department's guidelines must: (1) allow an approved creditor to hold itself out as such in marketing materials or solicitations directed at Indiana customers; and (2) require an approved creditor to provide to any debtor who: (A) applies for a refinancing of a qualifying underwater mortgage; and (B) does not qualify for the refinancing based on the creditor's underwriting standards; a written statement stating the reasons the debtor did not qualify. Provides that an approved creditor must submit periodic
Current Status:
 In Committee - first House
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