Source: http://www.ncsl.org/issues-research/banking/mortgage-lending-practices-2009-legislation.aspx
Timestamp: 2013-05-22 22:13:50
Document Index: 586248906

Matched Legal Cases: ['§37', '§37', '§29', '§34', '§34', '§37', '§37', '§29']

Mortgage Lending Practices 2009 Legislation
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Legislation tracked under this topic includes lending standards, subprime lending and predatory mortgage lending. In 2009, 38 states and Puerto Rico introduced legislation. Twenty five resolutions and bills were adopted or enacted in 2009.
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Concerns homeowner protection; provides that a broker shall not make a residential mortgage loan without verifying the borrower's reasonable ability to pay the scheduled payments of principal, interest, real estate taxes, homeowners insurance, assessments and mortgage insurance premiums; provides that for variable interest rates, the reasonable ability to pay shall be determined based on a fully indexed rate and a repayment schedule that achieves full amortization over the life of the loan.
H.C.M. 2007
Urges the United States Congress to enact legislation protecting the interests of self-employed individuals in the mortgage process.
A.B. 2, Special Session
Establishes "higher-priced mortgage loans," as defined, as a new category of regulated loans. The bill, among other things, limits prepayment penalties and prohibits provisions for negative amortization. The bill prohibits a licensed person, as defined, from making false, deceptive, or misleading statements or representations in connection with higher-priced mortgage loans. The bill also, among other things, prohibits a mortgage broker, as defined, who arranges higher-priced mortgage loans with prepayment penalties from receiving a compensation that exceeds certain amounts. Provides that a violation of the provisions regulating higher-priced mortgage loans by a licensed person is also a violation of the person's licensing law. Authorizes a licensing agency or the attorney general to enforce the provisions regulating higher-priced mortgage loans. Authorizes civil penalties in an amount up to $10,000 against a licensed person who willfully and knowingly violates the provisions regulating higher-priced mortgage loans, nullifies prepayment penalties or yield spread premiums that violate these provisions, makes a licensed person who violates these provisions liable to the borrower in the amount of the borrower's actual damages, and authorizes the court to award court costs and attorney's fees to a prevailing plaintiff. Establishes specified duties for mortgage brokers performing mortgage brokerage services for higher-priced mortgage loans. The bill's provisions would apply to higher-priced mortgage loans originated on or after July 1, 2010. Provides that a violation of specified federal lending laws or regulations by specified licensees is also a violation of the licensing law of the licensee. Provides that a mortgage broker, as defined, providing mortgage brokerage services, as defined, to a borrower is the fiduciary of the borrower, and any violation of the broker's fiduciary duties is a violation of the mortgage broker's licensing law and specified civil penalty and liability provisions. The bill further provides that this fiduciary duty includes a requirement that the mortgage broker place the economic interest of the borrower ahead of his or her own economic interest.
Signed by governor 10/11/09, Chapter 629
(1) The Real Estate Law provides for the licensure and regulation of real estate brokers and salespersons by the Real Estate commissioner. Existing law authorizes the commissioner to suspend or revoke the license of a real estate licensee or corporation, or to deny the issuance of a license to an applicant or corporation, for specified violations. This bill further authorizes the commissioner to suspend or revoke those licenses, or to deny issuance of those licenses, upon a violation of specified federal lending laws or regulations or upon the violation or failure to comply with specified provisions of state law relating to mortgages. (2) Existing law imposes certain limitations and prohibitions on licensed persons, as defined, with respect to the making of a covered loan, defined as a consumer loan in which the original principal balance of the loan does not exceed the most current conforming loan limit for a single-family first mortgage loan established by the Federal National Mortgage Association in the case of a mortgage or deed of trust, and as specified. Existing law does not regulate or define the term "higher-priced mortgage loan." This bill establishes "higher-priced mortgage loans," as defined, as a new category of regulated loans. The bill, among other things, limits prepayment penalties and prohibits provisions for negative amortization. The bill prohibits a licensed person, as defined, from making false, deceptive, or misleading statements or representations in connection with higher-priced mortgage loans. The bill also, among other things, prohibits a mortgage broker, as defined, who arranges higher-priced mortgage loans with prepayment penalties from receiving a compensation that exceeds certain amounts. The bill provides that a violation of the provisions regulating higher-priced mortgage loans by a licensed person is also a violation of the person's licensing law. The bill authorizes a licensing agency or the attorney general to enforce the provisions regulating higher-priced mortgage loans. The bill authorizes civil penalties in an amount up to $10,000 against a licensed person who willfully and knowingly violates the provisions regulating higher-priced mortgage loans, and nullifies prepayment penalties or yield spread premiums that violate these provisions. The bill also establishes specified duties for mortgage brokers performing mortgage brokerage services for higher-priced mortgage loans. The bill's provisions apply to higher-priced mortgage loans originated on or after July 1, 2010. (3) Existing law imposes certain limitations and prohibitions on specified licensees, including commercial banks, credit unions, finance lenders, and residential mortgage lenders, with respect to the making of consumer loans. This bill provides that a violation of specified federal lending laws or regulations by those licensees is also a violation of the licensing law of the licensee. The bill also provides that a mortgage broker, as defined, providing mortgage brokerage services, as defined, to a borrower is the fiduciary of the borrower, and any violation of the broker's fiduciary duties is a violation of the mortgage broker's licensing law and specified civil penalty and liability provisions. The bill further provides that this fiduciary duty includes a requirement that the mortgage broker place the economic interest of the borrower ahead of his or her own economic interest.
The Real Estate Law makes it unlawful for any person to claim, demand, charge, receive, collect, or contract for an advance fee for soliciting lenders on behalf of borrowers or performing services for borrowers in connection with a mortgage loan before the borrower becomes obligated to complete the loan and for performing any other activity for which a license is required, unless the person is a licensed real estate broker and has complied with the provisions of the Real Estate Law. A violation of that provision constitutes a public offense punishable by a fine of up to $10,000 for an individual or $50,000 for a corporation. Existing law exempts from that prohibition state-chartered banks, savings associations, credit unions, industrial loan companies, and licensed finance lenders and brokers. This bill would increase those fines to $20,000 and $60,000, respectively, and increases the maximum imprisonment time for a violation to 12 months. The bill also makes it unlawful, until January 1, 2013, for a real estate broker, or any other person who performs loan modification services, as specified, to claim, demand, charge, receive, or collect a fee paid for by a borrower for a loan modification agreement, as defined, until the terms of the loan have been modified, and requires provision of a specified notice prior to entering into a loan modification agreement with a borrower. The bill would make an attorney subject to disciplinary sanctions if he or she claims, demands, charges, receives, or collects a fee paid for by a borrower in connection with a loan modification agreement until the terms of the loan have been modified. The bill further exempts from the fee prohibition licensed residential mortgage lenders and servicers. The bill also exempts nonprofit community-based organizations, and employees of those organizations, that provide counseling services at no cost to borrowers in connection with loan modifications from certain provisions of the Real Estate Law regulating certain activities of real estate brokers and salespersons.
A.B. 919
Passed Assembly 6/2/09
Requires a mortgage or deed of trust that is secured by residential real property, as defined, to have an attached Residential Mortgage Participant Rider form, as set forth, that identifies by name any appraiser, lender, loan originator, and real estate broker, as defined, who were involved in the origination of the mortgage or deed of trust and his or her professional license number, if any. The bill prohibits the county recorder from accepting a mortgage or deed of trust for recordation if a Residential Mortgage Participant Rider form is not included.
A.B. 1160
Signed by governor 10/11/09, Chapter 274
Existing law requires a person in a trade or business who negotiates specified contracts or agreements primarily in the languages of Spanish, Chinese, Tagalog, Vietnamese, or Korean to deliver to the other party, prior to execution of the contract or agreement, a translation of the contract or agreement in the applicable foreign language, except as specified. Under existing law, failure to comply with these provisions entitles the aggrieved party to rescind the contract or agreement. Under existing law, these provisions apply to specified loans or extensions of credit subject to the Industrial Loan Law and the California Finance Lenders Law. This bill, in the alternative, requires a supervised financial organization, as defined, that negotiates primarily in one of those languages in the course of entering into a contract or agreement for a loan or extension of credit secured by residential real property, to deliver, prior to the execution of the contract or agreement, and no later than three business days after receiving the written application, a specified form in that language summarizing the terms of the contract or agreement, as specified. The bill provides that a supervised financial organization that complies with these provisions would be deemed to be in compliance with the translation requirement in existing law described above. The bill also provides that a supervised financial organization that complies with the translation requirement in existing law would be in compliance with these provisions. The bill provides for administrative penalties against specified licensed persons for violations of these provisions. The bill requires the Department of Corporations and the Department of Financial Institutions to create a new form for these purposes, as provided, and to make it available in each of the languages described above. The bill authorizes an action against a supervised financial organization for a violation of these provisions to be brought only by a licensing agency or by the attorney general.
A.B. 1534
Prohibits a general building contractor from originating, directly or through a related entity, a consumer loan, as defined, to be used for the purchase of a home that is for sale by the contractor or a related entity of the contractor.
A.J.R. 20
Urges the Congress to enact H.R. 230 to provide all homeowners, including those in California, the opportunity to refinance their current home loans with a lower interest rate and to assist qualified home buyers with mortgage financing.
Resolves that the state of California and local governments should explore the potential divestiture of all financial interests in banking and other financial institutions that fail to cooperate with foreclosure prevention efforts that include temporary moratoriums on foreclosures, renegotiation of mortgage principles to reflect current values, and good faith negotiations with mortgagees.
Signed by governor 10/11/09, Chapter 630
This bill, until January 1, 2013, prohibits any person, including a real estate licensee, who negotiates, attempts to negotiate, arranges, attempts to arrange, or otherwise offers to perform residential mortgage loan modifications or other forms of mortgage loan forbearance, as specified, for a fee or other compensation paid by a borrower, from demanding or receiving any preperformance compensation, as specified, requiring any security as collateral for final compensation, or taking a power of attorney from a borrower, and makes a violation of that prohibition a misdemeanor or subject to specified fines. This bill also provides that these provisions do not apply to actions taken by a person who offers loan modification or other loan forbearance services for a loan owned or serviced by that person, including, but not limited to, collecting principal, interest, or other charges under the terms of a loan, before the loan is modified, including charges to establish a new payment schedule for a nondelinquent loan. This bill also requires any person, including a real estate licensee, who negotiates, attempts to negotiate, arranges, attempts to arrange, or otherwise offers to perform residential mortgage loan modifications or other forms of mortgage loan forbearance, as specified, for a fee or other compensation paid by a borrower, to provide a specified 14-point bold type statement regarding loan modification fees. The bill makes a violation of that prohibition a misdemeanor or subject to specified fines. The bill also provides that a real estate licensee who fails to comply with specified provisions related to mortgages, including the loan modification provisions, would be subject to disciplinary action by the Real Estate commissioner, and provides that a violation of the above by an attorney may also subject him or her to disciplinary action. The bill adds to the California Finance Lenders Law a prohibition on making a materially false or misleading statement or representation to a borrower about the terms or conditions of that borrower's loan, when making or brokering a loan. Existing law provides that certain persons are exempt from regulation under certain provisions of the Real Estate Law dealing with real estate loans. This bill further exempts from those provisions specified organizations that have been approved by the United States Department of Housing and Urban Development to provide counseling services, when those services are provided at no cost and in connection with residential mortgage loan modifications. This bill specifies that a real estate licensee and a finance lender are excluded from the definition of a foreclosure consultant when acting under the authority of that person's license, and delete the commissioner's authority to terminate the finance lender's exclusion. The bill also deletes obsolete statutory references from those provisions.
H.B. 5314
Requires mortgage creditors that accept monthly mortgage installment payments at a branch of a bank in the state to permit a customer or such customer's attorney to make a final mortgage installment payment on the day of closing.
Implements the governor's budget recommendations; prohibits specific acts or patterns of residential mortgage fraud and provides criminal penalties for violations of such provisions; amends the definition of "nonprime home loan" to make it consistent with the definition of "higher priced loans" in Federal Reserve Regulation Z; and provides additional protections for borrowers.
Creates the crime of residential mortgage fraud. It provides that a person who commits a single act of residential mortgage fraud is guilty of a class D felony (up to a $ 5,000 fine, up to five years in prison, or both), while a person who commits two or more acts is guilty of a class C felony (up to a $ 10,000 fine, up to 10 years in prison, or both). The bill also: modifies the interest rate that makes a home loan “nonprime”; extends, by one year, the banking commissioner's authority to adjust interest rate parameters for nonprime loans; allows the commissioner to deem certain mortgage professional license applications abandoned and keep the application fee; applies an existing prohibition against increasing the interest rate after default in certain loans to all residential mortgage loans; and makes minor and technical changes.
S.J.R. 15
Urges Congress to implement the Homeowners and Bank Protection Act of 2007; encourages Congress to take emergency action to keep people in their homes and avert social chaos.
Signed by governor 7/8/09, Chapter 138
Limits compensation that may be received by mortgage loan brokers and licensed lenders who engage in mortgage loan modification services for homeowners.
Requires certain mortgage lenders to provide a homeowner with six months written notice of a change in the interest rate on a mortgage on the homeowner’s principal residence. This act exempts state and federally chartered banks, their affiliates, and subsidiaries, as they are already subject to significant regulation of their mortgage practices.
Requires certain mortgage lenders to provide a homeowner with a written notice, within five business days after the mortgage loan becomes 60 days delinquent, which provides the homeowner with important information about how to reinstate the loan. This act exempts state and federally chartered banks, their affiliates, and subsidiaries, as they are already subject to significant regulation of their mortgage practices.
Indefinitely postponed 5/2/09
Urges Congress to enact the Homeowners and Banks Protection Act.
Relates to conveyances to secure debt in general, so as to revise provisions relating to regulation of security conveyances; repeals certain obsolete provisions relating to due on sale clauses which have been preempted by federal law; provides certain new regulations with respect to certain residential mortgages and deeds to secure debt; prohibits prepayment penalties, negative amortization, and yield spread compensation of loan originators; requires loan originators to verify ability to repay.
Requests that the United States Congress pass legislation that comprehensively addresses the needs of subprime consumers and eliminates unnecessary home mortgage foreclosures.
Repeals and reenacts the "Georgia Fair Lending Act"; prohibits abusive home loan practices; provides for definitions; provides for prohibited practices and limitations relating to covered home loans and high-cost home loans; creates specific and numerous consumer protections for covered home loans and high-cost home loans; provides for penalties and enforcement; provides for exceptions for unintentional violations.
Relates to the "Georgia Fair Lending Act," so as to provide for and change definitions; provides for limitations on home loans and high-interest home loans; provides for duties for mortgage brokers.
S.R. 759
Requests mortgage lending institutions to adopt rent-to-own programs to help to eliminate unnecessary home mortgage foreclosures.
Limits the amount of pre-paid interest that may be charged by a lender for a residential mortgage.
Limits the amount of fees that may be charged by a lender for a residential mortgage.
Urges the United States Congress to consider adopting new homeowner lending standards for mortgage lending companies that receive federal aid.
Passed House 4/3/09
Amends the Residential Mortgage License Act of 1987. Provides that no licensee may make, provide, or arrange a mortgage loan with a prepayment penalty (rather than permitting prepayment penalties under specified conditions). Provides that prepayment penalties are prohibited in connection with the sale or destruction of a dwelling secured by a residential mortgage loan. Amends the High Risk Home Loan Act to provide that for any loan that is subject to the provisions of the Act and is not subject to the provisions of the Home Ownership and Equity Protection Act of 1994, no lender shall make a high risk home loan that includes a penalty provision (rather than permitting prepayment penalties under specified conditions). Amends the Interest Act. Deletes a provision providing that notwithstanding specified provisions, the lender, in the case of any nonexempt residential mortgage loan, shall have the right to include a prepayment penalty that meets specified criteria.
H.B. 705
Further amends the Residential Real Property Disclosure Act. Provides that the predatory lending database program shall be expanded to include Kane, Peoria, and Will counties. Provides that the inception date of the expansion of the program to Kane, Peoria, and Will counties shall be July 1, 2010. Provides that the Department of Financial and Professional Regulation shall submit semi-annual reports that include information by county for each reporting period. Adds to the information to be included in the reports: the number of licensed mortgage brokers and loan originators entering information into the database; the number of investigations based on information obtained from the database, including the number of licensees fined, the number of licenses suspended, and the number of licenses revoked; a summary of the non-traditional mortgage products offered; and a summary of how the Department is actively using the program to combat mortgage fraud.
H.B. 856
Amends the Illinois Banking Act, the Illinois Savings and Loan Act of 1985, the Savings Bank Act, and the Illinois Credit Union Act. Provides that a bank, savings and loan association, savings bank, or credit union organized under the laws of the state that is a lender for a residential mortgage must retain a permanent 25 percent interest in the value of the loan.
H.B. 1094
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.
Amends the High Risk Home Loan Act. Makes a technical change in a section concerning the prohibition on certain home loans.
H.B. 2699
Amends the Deposit of State Moneys Act. Requires the state treasurer to implement and administer, by rule, a program requiring financial institutions to make mortgage loans on residential property in order for that financial institution to be eligible for investment of state funds in that financial institution. Requires the rules to contain provisions concerning not rejecting residential mortgage loans because of the location of the property, minimum assets to be invested in residential mortgage loans, minimum annual new residential mortgage loans, and reporting and auditing. Requires the treasurer to report annually to the General Assembly.
H.B. 3740
Amends Public Act 95-0731. Provides that amounts appropriated from the Predatory Lending Database Program Fund to the Department of Revenue for grants pursuant to the Predatory Lending Database Program, administered by the Illinois Housing Development Authority, may also be expended for grants to any HUD-certified counseling agency in any county for: mortgage default counseling activities listed in the U.S. Department of Housing and Urban Development Housing Counseling Program Handbook; and counseling to a borrower as specified in the Residential Real Property Disclosure Act.
H.B. 3751
Amends the Illinois Worker Adjustment and Retraining Notification Act. Provides that, if an employer orders a mass layoff, relocation, or employment loss and fails to notify employees, then an employee shall be allowed to suspend interest payments on a home mortgage for 180 days and then pay the deferred interest in equal installments over the remaining term of the mortgage loan.
H.B. 3752
Amends the Illinois Banking Act. Provides that, on and after the effective date of the amendatory Act, any bank chartered under the Act that does business with the state must not offer either (i) No Income No Asset Loans or (ii) No Income, No Job, and No Asset Loans to customers or prospective customers.
H.B. 3864
Amends the Residential Mortgage License Act of 1987. Provides that at the time a mortgage loan is made or brokered, a licensee must provide to the borrower, in the mortgage document, a summary of the terms of the mortgage agreement. The summary must be listed on the first page of the document in an area titled "SUMMARY OF TERMS". The summary must be listed in bold, 14-point font.
Urges Congress to pass legislation that requires the original lender for a residential mortgage to retain a permanent 25 percent interest in the value of the loan.
Adopted 4/22/09
Urges Congress to ensure that the funds associated with the Troubled Assets Relief Program are allocated to financial institutions that will use the funds for new single-family home mortgages or to refinance existing single-family home mortgages.
Signed by governor 12/31/09, Public Act 96-0854
Amends the Mortgage Escrow Account Act. Defines "homeownership preservation program" and "subprime mortgage lender" for purposes of new provisions. Provides that the existing provisions which allow a borrower to pledge an interest bearing time deposit with a mortgage lender to secure the payment of anticipated taxes do not apply to a mortgage loan made by a subprime mortgage lender or to a refinance or modification made under a homeownership preservation program, subject to specified conditions.
Passed House 5/31/09
Amends the Residential Real Property Disclosure Act. Provides that a predatory lending database program shall be established within Cook, Kane, and Will counties (instead of Cook County). Provides that the inception date of the program as it applies to Kane and Will counties shall be January 1, 2010.
Signed by governor 12/31/09, Public Act 96-0856
Provides that a predatory lending database program shall be established within Cook, Kane, and Will counties (instead of Cook County). Provides that the inception date of the program as it applies to Kane and Will counties shall be July 1, 2010.
Passed House 2/23/09
Resolves the conflict affecting IC 6-1.1-12-43 (concerning the duty of a closing agent to provide the customer a certain form and to input certain information in connection with a single family residential mortgage transaction) that arose when IC 6-1.1-12-43 was amended in different ways by P.L.146-2008 and P.L.145-2008.
Signed by governor 4/30/09, Public Law 52
Provides that in the case of a first lien mortgage transaction or a home loan that: (1) is closed after June 30, 2009; and (2) has an interest rate that is subject to change during the term of the loan; the creditor may not contract for and may not charge the debtor or borrower a prepayment fee or penalty. Provides that a person shall not corrupt or improperly influence, or attempt to corrupt or improperly influence, a real estate appraiser or an appraisal. Provides that a proposed new notice that is to be: (1) prescribed by the attorney general's homeowner protection unit; and (2) provided by a creditor to a prospective borrower not later than three business days after the creditor's receipt of the borrower's mortgage loan application; must include a statement of a borrower's right under the federal Real Estate Settlement Procedures Act to inspect the HUD-1 or HUD-1A settlement statement during the business day immediately preceding settlement. Provides that the annual report provided by the mortgage lending and fraud prevention task force to the legislative council must include the following information for the most recent state fiscal year: (1) The number of complaints or reports received by the unit concerning suspected violations of the prohibition against corrupting or improperly influencing a real estate appraiser or an appraisal. (2) A breakdown of the sources of the complaints or reports, based on the complainants' interest in or relationship to the real estate transactions upon which the complaints or reports are based. (3) A description of any disciplinary or enforcement actions taken, or criminal prosecutions pursued, in connection with the complaints or reports received. Sets forth certain penalties and enforcement procedures for violations of the provisions concerning real estate appraisals. Requires a foreclosure consultant to retain all records related to services performed on behalf of a homeowner for at least three years after the termination or conclusion of the foreclosure consultant contract. Prohibits a person from engaging in, or soliciting to engage in, a real estate or mortgage transaction without a permit or license required by law. Prohibits a person from making certain representations with respect to: (1) a mortgage or real estate transaction; or (2) the property that is the subject of the transaction; if the representation is not true and the person knows or reasonably should know that the representation is not true. Provides that a practitioner of a licensed profession who has been subjected to disciplinary sanctions by the board that regulates the profession may be required to pay the costs of any real estate review appraisal obtained in connection with the disciplinary proceedings. Provides that a violation of the statutes concerning: (1) credit service organizations; and (2) mortgage rescue protection fraud; by a person licensed or required to be licensed as a real estate salesperson or broker is a violation of the statute governing the regulation of real estate salespersons and brokers and is subject to certain specified enforcement procedures and sanctions. Specifies that the board that regulates a licensed profession may not approve the surrender of a practitioner's license if the attorney general's office: (1) has filed an administrative complaint concerning the practitioner's license; and (2) opposes the surrender.
Urges the United States Congress to implement the Homeowners and Bank Protection Act.
H.F. 699
Establishes a financial literacy and counseling program to be administered by the Iowa Finance Authority in collaboration with the Department of Commerce. The one-year pilot program is to be operated in the five counties with the highest mortgage foreclosure rates as of the effective date of the Act. A mortgage banker or mortgage broker issuing mortgage loans to consumers within the five counties must recommend participation in the pilot program to any consumer seeking a mortgage loan with origination fees greater than five percent, and must notify the consumer that the mortgage loan may have attributes that are predatory. A person who offers education, advice, or counseling through the pilot program shall not be held liable for any damages incurred from actions taken based on the education, advice, or counseling obtained under the pilot program. The bill appropriates $5,000 from the state general fund for the 2009-2010 fiscal year to the Authority for administration of the program and directs the Authority to fund the pilot program with moneys declared by the Authority to be surplus. The Authority, in collaboration with the Department of Commerce, must report its findings and recommendations for statewide implementation of the pilot program to the General Assembly by January 15, 2011.
Urges Congress to enact a Homeowners and Bank Protection Act.
L.D. 1439
Signed by governor 6/11/09, Public Chapter 362
Amends several mortgage lending provisions of the Maine Consumer Credit Code to correct inconsistencies within the law and to conform state law to federal developments that took place during calendar year 2008, including mandatory guidance from federal bank regulators; amendments to the mortgage provisions of federal truth-in-lending laws; and congressional enactment of a federal foreclosure relief law that contained additional changes to federal lending provisions. Enables the state to participate in the national loan originator registration program that is also required by the recent federal foreclosure relief law.
Clarifies the application of specified provisions of law that prohibit a lender from making a mortgage loan without giving due regard to the borrower's ability to repay the loan; provides that specified provisions of law that prohibit a lender from making a secondary mortgage loan without giving due regard to the borrower's ability to repay the secondary mortgage loan do not apply to a secondary mortgage loan for real property that is held for specified purposes.
Withdrawn 3/25/09
Withdrawn 3/23/09
Clarifies that specified limitations on a mortgage broker's ability to charge and collect a finder's fee for obtaining more than one loan secured by the same property within 24 months applies only if the second loan is obtained from the same borrower as under the initial loan and is obtained for a specified purpose or is a specified covered loan; and defining "covered loan."
Signed by governor 4/14/09, Chapter 115
S.B. 1036
Signed by governor 4/14/09, Chapter 114
For specified mortgage loans that refinance an existing mortgage loan, establishes exceptions to the requirement that the due regard lenders and credit grantors must give to a borrower's ability to repay specified mortgage loans includes consideration of the borrower's debt to income ratio and verification in a specified manner of income and assets of the borrower.
H.B. 858
Requires banks and lending institutions to issue monthly statements to their mortgage loan customers which includes, but is not limited to, the following information: the balance of principal remaining to be paid; the most current interest rate available for the amount of principal remaining on said loan at the time such mortgage statement is printed; a confirmation of the most recent payment received; and the balance of any escrow accounts and a description of any payments from such escrow accounts.
Provides that a mortgagor shall not be required to pay a prepayment fee or penalty, or be have funds refused by a bank for property insurance or tax payments, due to limitations set by state or federal agencies for ceiling amounts held in escrow, for the term of the loan. Provides that residential real estate payments under the terms of a first mortgage including property tax and insurance premiums shall be recalculated as needed.
Provides that a partial payment by a borrower shall be accepted by a mortgagee or mortgage servicer and applied to mortgage debt, provided that the debt arises from a mortgage loan with high points, fees or interest in violation of chapter 183C or a mortgage loan having the following characteristics: (i) adjustable rate loans with an introductory period of three years or less; (ii) a debt-to income ratio in excess of 50 percent of recurring debt under the fully indexed rate; (iii) the loan was approved on a stated income basis; (iv) interest only loans or (v) the loan-to-value ratio is 100 percent or the loan carries pre-payment penalties of greater than three months interest. The partial payment shall be applied in the following priority order: (i) interest, (ii) principal, and (iii) any taxes and insurance that the mortgagee or mortgage servicer is obligated to pay on the mortgage loan on behalf of the borrower. A regularly scheduled mortgage payment subsequent to a partial payment shall be applied as if the partial payment was a full payment. No mortgagee or mortgage servicer shall be required to accept a partial payment in consecutive months or more than two partial payments in a twelve month period. A partial payment shall not constitute a default of the mortgage loan if made in accordance with this section, provided that the difference between the total monthly mortgage payment and the partial payment is remitted within 90 days of the date that the total monthly mortgage payment was due and the mortgagee has paid the amount of monthly mortgage payment owed by that date in full by said date. Upon receipt of a partial payment, the mortgagee or mortgage servicer shall issue to the borrower a statement reflecting the deficiency payment due and specifying that the next regularly scheduled payment will not be reduced by the amount of any deficiency payments. A borrower who has made a partial payment under this section shall clearly identify the funds being remitted to complete the mortgage payment on which a partial payment was previously made. Late fees shall not be assessed in connection with a partial payment or deficiency payment made in accordance with this section. Nothing in this section shall preclude or limit the right to initiate a foreclosure proceeding pursuant to chapter 244. The attorney general shall enforce this section and may obtain injunctive or declaratory relief for this purpose.
H.B. 4065
Replaces the Consumer Mortgage Protection Act with the Home Loan Protection Act.
H.B. 4066
A mortgage broker or lender licensee or registrant shall not fail or neglect to do any of the following in connection with the brokering, servicing, or making of any mortgage loan: (a) Act in good faith and with fair dealing in any transaction, practice, or course of business. (b) Safeguard and account for any money handled for the borrower. (c) Follow reasonable and lawful instructions from the borrower. (d) Use reasonable skill, care, and diligence. (e) Timely and clearly disclose to the borrower material information that might reasonably affect the borrower's rights, interests, or ability to receive the borrower's intended benefit from the mortgage loan, including, but not limited to, the total compensation the broker would receive from any of the loan options the licensee or registrant presents to the borrower. (f) Make reasonable efforts to secure a mortgage loan that is reasonably advantageous to the borrower considering all the circumstances, including, but not limited to, the rates, charges, and repayment terms of the loan.
H.B. 4067
A mortgage broker or lender licensee or registrant shall not fail or neglect to do any of the following in connection with the brokering, servicing, or making of any secondary mortgage loan: (a) Act in good faith and with fair dealing in any transaction, practice, or course of business. (b) Safeguard and account for any money handled for the borrower. (c) Follow reasonable and lawful instructions from the borrower. (d) Use reasonable skill, care, and diligence. (e) Timely and clearly disclose to the borrower material information that might reasonably affect the borrower's rights, interests, or ability to receive the borrower's intended benefit from the mortgage loan, including, but not limited to, the total compensation the broker would receive from any of the loan options the licensee or registrant presents to the borrower. (f) Make reasonable efforts to secure a mortgage loan that is reasonably advantageous to the borrower considering all the circumstances, including, but not limited to, the rates, charges, and repayment terms of the loan.
H.B. 4585
Provides that a high-cost home loan is subject to the following additional limitations and prohibited practices: (a) A creditor shall not directly or indirectly finance any points or fees in excess of two percent of the loan amount in connection with a high-cost home loan. (b) A creditor shall not include in the loan documents for a high-cost home loan or charge a borrower in a high-cost home loan any prepayment fees or penalties. (c) A high-cost home loan shall not contain a scheduled payment that is more than twice as large as the average of earlier scheduled payments. This subdivision does not apply when the payment schedule is adjusted to the seasonal or irregular income of the borrower. (d) A high-cost home loan shall not include payment terms under which the outstanding principal balance or accrued interest will increase at any time over the course of the loan because the regularly scheduled periodic payments do not cover the full amount of interest due. (e) A high-cost home loan shall not contain a provision that increases the interest rate after default. This subdivision does not apply to interest rate changes in a variable rate loan otherwise consistent with the provisions of the loan documents, if the change in the interest rate is not triggered by the event of default or the acceleration of the indebtedness. (f) A high-cost home loan shall not include terms under which more than two periodic payments required under the loan are consolidated and paid in advance from the loan proceeds provided to the borrower. (g) A creditor shall not make a high-cost home loan without first receiving certification from a counselor from an independent nonprofit organization approved by the United States Department of Housing and Urban Development, by a state housing financing agency, or by the regulatory agency that has jurisdiction over the creditor, that the borrower has received counseling on the advisability of the loan transaction. A counselor or counseling agency that is affiliated with a mortgage broker or mortgage lender, as those terms are defined in section 1a of the mortgage brokers, lenders, and servicers licensing act, 1987 PA 173, MCL 445.1651a, is not considered an independent nonprofit organization for purposes of this subsection. (h) A creditor shall not pay a contractor under a home-improvement contract from the proceeds of a high-cost home loan, unless the instrument is payable to the borrower or jointly to the borrower and the contractor or, at the election of the borrower, through a third-party escrow agent in accordance with terms established in a written agreement signed by the borrower, the creditor, and the contractor before the disbursement. (i) A creditor shall not charge a borrower a fee or other amount to modify, renew, extend, or amend a high-cost home loan or to defer any payment due under the terms of a high-cost home loan. (j) A high-cost home loan document that creates a debt or an interest in property to secure a debt shall include the following notice, printed conspicuously on the face of the document: "Notice: This is a high-cost home loan subject to special rules under state law. A purchaser or assignee of this high-cost home loan may be liable for all claims and defenses of the borrower with respect to the home loan."
H.B. 4586
Revises provisions concerning notices and disclosures under the Consumer Mortgage Protection Act.
H.B. 4587
Provides that a creditor shall not directly or indirectly finance any credit life, credit disability, or credit unemployment insurance in which the creditor is named as a beneficiary, any other life or health insurance, or any payments directly or indirectly for any debt cancellation or suspension agreement or contract. However, insurance premiums or debt cancellation or suspension fees calculated and paid in equal monthly installments are not considered financed by the creditor. A creditor shall not knowingly or intentionally make a home loan to a borrower that refinances an existing home loan if the new loan does not have reasonable, tangible net benefit to the borrower considering all of the circumstances. A creditor shall not recommend or encourage default or encourage a borrower to stop making payments on an existing loan or other debt before and in connection with the closing or planned closing of a home loan that refinances all or any portion of that existing loan or debt. A creditor shall not do any of the following: (a) Charge a borrower a late payment fee unless the loan documents specifically authorize the fee, the fee is not imposed unless the payment is past due for 10 days or more, and the fee does not exceed five percent of the amount of the late payment. (b) Charge more than one late payment fee with respect to any single late payment. (c) Charge a late payment fee for a default on a loan payment if the default is the result of the creditor or servicer deducting a late payment fee from a previous payment made on the home loan. However, a creditor may apply any payment made to any unpaid balances of payments due in the order of maturity, even if the result is a late payment fee accruing on one or more subsequent payments due. A home loan may not contain a provision that permits the creditor in its sole discretion to accelerate the indebtedness. This subsection does not prohibit acceleration of the loan in good faith due to the borrower's failure to abide by the material terms of the loan. A creditor shall not charge a fee for verbally informing a person of the balance due to pay off a home loan. A creditor shall not charge a person a fee for transmitting one written statement of the balance due to pay off a home loan within a 12-month period. A creditor may charge a fee that does not exceed $25 to provide a second written statement of the balance due to pay off a home loan within a 12-month period. If a person requests more than two written statements of the balance due to pay off a home loan within a 12-month period, a creditor may charge a reasonable fee for any additional written statements transmitted to that person. A creditor shall provide a written statement of the balance due to pay off a loan under subsection (6) within seven business days after the request is made. Subject to subsection (9), a creditor shall not do any of the following in connection with a home loan: (a) Steer, counsel, or direct a consumer to rates, charges, principal amount, or prepayment terms that are not reasonably advantageous to the borrower considering all of the circumstances, including, but not limited to, the characteristics of the property that secures or will secure the loan and the loan terms for which the borrower qualifies. (b) Materially mischaracterize a borrower's credit history or the home loans available to a borrower from the creditor. (c) Materially mischaracterize the appraisal value of a dwelling. (d) If unable to suggest, offer, or recommend to a borrower a reasonably advantageous home loan, discourage a borrower from seeking a home loan from another creditor. Subsection (8) does not prohibit a creditor from providing a borrower with accurate, unbiased, general information about consumer home loans, underwriting standards, ways to improve credit history, or any other matter relevant to a borrower. A creditor shall not charge or collect any prepayment fee or penalty on a home loan. A prepayment penalty provision in a home loan is void and unenforceable. A creditor shall not extend a home loan to a borrower unless the creditor reasonably determines at the time the home loan is consummated that the borrower is able to repay the loan according to the loan terms. For purposes of subsection (11), the use of an automated underwriting system that complies with the provisions of subsection (11) to underwrite, approve, accept, or otherwise identify a home loan as meeting acceptable credit standards constitutes a reasonable method for determining a borrower's ability to repay a home loan. Provides that it is an affirmative defense to an action under this act by a borrower against a creditor if the creditor relied upon one or more deliberate material misstatements, misrepresentations, or omissions made by the borrower in a home loan application or other loan document.
H.B. 4588
Revises references to home loans in local preemption provisions under Consumer Mortgage ProtectionAct.
H.B. 4589
Prescribes civil sanctions and penalties for the Consumer Mortgage Protection Act.
H.B. 4591
Provides general revision to the Consumer Mortgage Protection Act.
Revises the title and general definitions for the Consumer Mortgage Protection Act.
H.B. 4593
Revises claims and defenses in civil actions for Consumer Mortgage Protection Act.
Memorializes the Congress of the United States to create the Homeowners and Bank Protection Act.
Requires banks and financial institutions to publish mortgage loan modification criteria.
Requires mortgage brokers and lenders to make disclosures regarding the notice of assignment of mortgages and creates remedies.
S.B. 933
Requires second mortgage brokers and lenders to make disclosures regarding the notice of assignment of mortgages and creates remedies.
Provides consumer protections from certain mortgage lending practices relating to balloon payments, negative amortization and prepayment penalties.
S.B. 2501
Requires a mortgage value disclosure statement containing the amount of the full actual consideration paid or to be paid, a statement that the transaction was at arms length, a statement of the actual or intended use of the property, and a $10 filing fee to be filed with the assessor before the recorder of deeds can accept the filing of any document by which any lands or other interest in certain real property are conveyed to the purchaser or any other person. One copy of the mortgage value disclosure statement will be forwarded to the State Tax Commission for use on certain administrative tasks and one retained by the assessor for the purpose of assisting in the implementation of a general reassessment or an assessment and equalization maintenance plan. Certain exemptions from the requirements and penalties for violations are specified.
H.B. 524
Prohibits lenders from imposing a fine, fee, or penalty for prepaying a loan and repeals the provision allowing a prepayment fee to be charged on a second mortgage loan.
Calls upon the United States Congress to take emergency action to protect homeowners and banks by enacting a Homeowners and Banks Protection Act.
S.B. 282
Creates statutory warranties for home buyers and homeowners and also prevents home solicitors from engaging in certain deceptive practices. This act prohibits certain unfair or deceptive practices relating to home improvement loans to the consumer. It prohibits home solicitations where a home improvement loan is made encumbering the person's home to pay the loan and where the practice violates federal law. Violation of this provision constitutes a Class A misdemeanor.
S.B. 541
Institutes various provisions regulating practices involved in making residential mortgage loans. Creditors are barred from knowingly or intentionally making a residential mortgage loan that refinances an existing residential mortgage loan when the new loan does not have reasonable, tangible benefit to the borrower. Before issuing a residential mortgage loan, the creditor shall verify the borrower's reasonable ability to pay the scheduled payments. The standards for reasonableness are enumerated. Creditors are barred from making subprime loans containing prepayment penalties. Creditors shall not make false, deceptive, or misleading statements or advertisements in connection with a residential mortgage loan. Residential mortgage loans shall not finance property, life, or health insurance premiums, debt cancellation or suspension agreements, or products that are not related to the loan closing such as auto club memberships or the monitoring of credit reports. Mortgage brokers shall act as agents of the borrower with reasonable care, in the borrower's best interest and according to the instructions of the borrower. Brokers shall have the duty to disclose all material facts relating to the transaction, and account for all of the borrower's money received by the broker. Those in violation shall be liable for punitive, actual, and consequential damages, court costs, damages equal to two times the amount of all lender and broker fees.
Became law without governor's signature 4/19/09, Chapter 324
Provides that a state bank, credit union, or mortgage lender may not require a borrower, as a condition of obtaining or maintaining a loan secured by real property, to provide insurance on improvements to real property in an amount that exceeds the reasonable replacement value of the improvements.
A.B. 151
Signed by governor 5/29/09, Chapter 329
Requires a mortgage broker to include his license number on any loan secured by a lien on real property for which he engages in activity as a mortgage broker; requires certain financial institutions that offer nontraditional mortgage loan products to make certain disclosures to borrowers with respect to nontraditional mortgage loans; requires such financial institutions to certify such disclosures to the commissioner of Financial Institutions; provides a penalty.
A.J.R. 11
Urges Congress to implement the Homeowners and Bank Protection Act of 2007.
A.B. 1879
S.B. 2561
Provides additional consumer protections for residential mortgage borrowers by requiring certain disclosures not less than seven days prior to closing with respect to “home loans” as defined in the “New Jersey Home Ownership Security Act of 2002,” P.L.2003, c.64 (C.46:10B-22 et seq.). The bill prohibits a creditor from making a home loan unless the creditor has delivered to the borrower, at least seven days prior to the closing of the loan, a statement in writing, showing in clear and distinct terms the following items: (1) amount of the loan; (2) length of the loan; (3) final maturity date; (4) initial annual percentage interest rate; (5) amount of the initial monthly payment, including principal, interest, taxes, and insurance, and the amount of this payment expressed as a percentage of the borrower’s annual gross income; and (6) total points and fees to be paid. If the home loan provides for the possibility of an increase in the annual percentage interest rate, the creditor shall also include on the statement the following items: (1) maximum possible annual percentage interest rate; (2) date the annual percentage interest rate could increase; (3) frequency with which the annual percentage interest rate and monthly payment could increase; (4) maximum possible amount of monthly principal and interest payment, based on a fully indexed rate, and the amount of this payment expressed as a percentage of the borrower’s annual gross income; and (5) maximum possible amount of monthly payment, including principal, interest, taxes, and insurance premiums, based on a fully indexed rate, and the amount of this payment expressed as a percentage of the borrower’s annual gross income.
A.B. 3927
Increases and clarifies the permissible categories of fees chargeable by residential mortgage lenders and residential mortgage brokers. The “New Jersey Residential Mortgage Lending Act,” sections 1 through 39 of P.L.2009, c.53 (C.17:11C-51 et seq.), created these new designations related to mortgage lending activities, and persons and entities will begin receiving licenses under these designations no later than July 31, 2010, or a later date approved by the Secretary of the United States Department of Housing and Urban Development, in accordance with the provisions of the act and applicable federal law. Under the bill, when combined with the existing statutory law, a residential mortgage lender, once licensed, may charge only the following fees in connection with any mortgage loan transaction not involving a secondary mortgage loan: (1) credit report fee; (2) appraisal fee; (3) application fee, except that a residential mortgage lender shall not charge an application fee if a residential mortgage broker, pursuant to the bill, charges an application fee in connection with the loan; (4) commitment fee; (5) warehouse fee; (6) fees necessary to reimburse the residential mortgage lender for charges imposed by third parties; (7) discount points, which shall be disclosed as a percentage of the loan amount or a fraction thereof, payable to reduce the interest rate on that loan; (8) lock-in fee; and (9) origination fee, or alternatively, points, which shall be disclosed as a percentage of the loan amount or a fraction thereof. Additionally, a residential mortgage broker, once licensed, may charge only the following fees in connection with any mortgage loan transaction not involving a secondary mortgage loan: (1) application fee; and (2) broker fees, which may be disclosed as a percentage of the loan amount or a fraction thereof, or as a flat fee, and a portion of which may be disclosed as an origination fee to meet Federal Housing Administration or Veterans Benefits Administration loan requirements.
A.B. 4331
This bill establishes, as an addition to the state’s existing efforts to combat mortgage foreclosures through the “Mortgage Stabilization and Relief Act,” P.L.2008, c.127 (C.55:14K-82 et al.), a new Mortgage Education and Foreclosure Avoidance Program. The program targets “at risk” borrowers and “at risk” refinancing borrowers, as measured under the bill by their credit score and other factors relating to the loan amount on a purchase or refinance. The program shall be established in the New Jersey Housing and Mortgage Finance Agency. The agency shall contract with a consulting organization, which shall be a qualifying HUD certified housing counseling agency or other, similar organization recognized by the agency, to assist in the development, administration, and training for the program. The program, as developed by the consulting organization, shall be proposed and adopted in regulation by the agency. In accordance with the bill, the program shall include: (1) educational presentations and materials regarding mortgages; (2) educational presentations and materials regarding real estate transactions; (3) an awarding of a standardized certificate of completion to the at risk borrowers and refinancing borrowers, indicating completion of the educational component of the program, the date of issue, and an expiration date; and (4) a monitoring system, which shall continue for two years after the date of the borrowers’ purchase or refinance following their participation in the educational component of the program, and provides for further educational or counseling opportunities, or referrals to other programs on mortgage stabilization and relief offered by the state. The program shall be administered by HUD certified counseling agencies that are approved, following application to the agency, to participate in the program, or by the consulting organization contracted to assist in the development, administration, and training for the program. Any individual employed or otherwise contracted by an approved HUD certified counseling agency to administer the program shall not participate in providing the program to at risk borrowers or refinancing borrowers until that individual successfully completes the educational component of the program. At the time of accepting any application for any mortgage for a residential property in this state, a lender or broker, as the case may be, shall provide a written disclosure to the applicant, prepared by the agency through regulation, informing the applicant of the requirements of this act concerning at risk borrowers and refinancing borrowers. The applicant shall acknowledge receipt of this written disclosure from the lender or broker through a signed statement, and the original or an electronic copy shall be maintained by the lender or broker for a period as determined by the agency by regulation. An at risk borrower or refinancing borrower shall not be eligible to close on any mortgage from a lender or through a broker in order to purchase or refinance a residential property unless the borrower possesses a valid, non-expired certificate of completion for the program. An at risk borrower or refinancing borrower possessing an expired certificate of completion may only be eligible to close on a mortgage by successfully repeating the program. In order for a lender, or a broker on behalf of a lender, to close on a mortgage loan with an at risk borrower or refinancing borrower, the lender or broker shall first request and maintain a copy of the borrower’s valid, non-expired certificate of completion. Any mortgage loan between a lender, or a broker on behalf of a lender, and an at risk borrower or refinancing borrower shall be in violation of the bill and subject the lender or broker to liability set forth by the agency in regulation, including, but not limited to, a civil monetary penalty, if the lender or broker does not request, obtain, and maintain an at risk borrower’s or refinancing borrower’s certificate of completion prior to closing on a mortgage transaction as required by the bill. However, a lender or broker shall not be liable for a violation under the bill if the lender or broker complies with the notice, collection and record keeping requirements for written disclosures and certificates of completion set forth in the bill. In order to fund the program, the bill requires a $25 Mortgage Education and Foreclosure Avoidance Program surcharge applied to each mortgage application processed by a lender or broker, payable to the existing Housing Assistance and Recovery Program Support Fund established by section 10 of P.L.2008, c.127 (C.55:14K-90). In the alternative, the New Jersey Housing and Mortgage Finance Agency may establish in regulation a fee for the program of not more than $150, charged to each participating “at risk” borrower or refinancing borrower, if the agency determines, in consultation with the Department of Banking and Insurance, that the program fee represents a more effective means of funding the program than the surcharge on mortgage applications.
Passed House 2/28/09
Relates to real estate; prohibiting certain home loans; amends the home loan protection act.
Passed House 3/4/09
Requires disclosure of prepayment provisions in loan documents.
H.B. 639
Requires that any institution offering no-cost mortgage financing in other states offer it in New Mexico.
H.B. 862
Signed by governor 4/7/09, Chapter 151
Prohibits a prepayment penalty for mortgages or other payments on purchase of a mobile home.
A.B. 170
S.B. 5102
A.B. 257
Passed Assembly 5/6/09
Requires mortgage lenders and brokers to provide consumers with a mortgage bill of rights pamphlet which must be read and signed by the consumer prior to applying for a mortgage.
A.B. 1240
Enacts the "disclosure in lending act"; provides greater disclosure to borrowers; requires a depiction, chart or table be given to borrowers of certain information; requires the banking department to establish a website dedicated to the risk of sub-prime mortgages; grants enforcement actions.
A.B. 1430
Requires mortgagee banks to provide written notice to mortgagor when such mortgagor is no longer required to maintain personal mortgage insurance coverage; provides such notice shall be delivered to the mortgagor within 30 days of the date upon which the mortgagor shall have acquired sufficient equity in real property subject to the mortgage so as to eliminate the necessity for personal mortgage insurance.
A.B. 2096
Prohibits mortgagees from requiring mortgagors of certain pieces of real property to purchase flood insurance coverage exceeding the actual value of the loan.
A.B. 3192
Enacting clause stricken 6/17/09
Requires a loan counseling disclosure as part of contract of sale for the transfer of property; provides that such form shall be signed at the time of contract and attached to the contract of sale.
A.B. 3197
Requires any entity that provides mortgages to inform its customers of the potential adverse effect mortgage rate shopping may have on the customers' credit ratings.
A.B. 3318
Requires the mortgage bill of rights, as proposed in a chapter of the laws of 2009, to be printed and posted on the Banking Department Web site in the eight languages that are most spoken in the state.
A.B. 3386
A.B. 4734
Relates to the dealings of mortgage brokers and home improvement contractors; specifies that the staff of a home improvement contractor shall not act on behalf of a mortgage broker, and that a mortgage broker shall not pay a home improvement contractor unless they performs their own inspection of the completed work.
A.B. 5441
S.B. 4506
Permits a one-time deferral of two consecutive monthly mortgage payments for the balance of the term of the mortgage on a residential mortgage; provides that the mortgage term be automatically extended by the period of such deferral and that the amount of monthly payments remain the same and not be recalculated.
A.B. 5683
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. 6828
Enacts the "New York Sub-prime Predatory Lending Prevention Act"; establishes guidelines for sub-prime loans; establishes duties of mortgage bankers and mortgage brokers; relates to the qualifications for licensing and certification of real estate appraisers.
A.B. 7705
S.B. 2073
Waives mortgage tax on the refinanced mortgage that replaces an adjustable rate mortgage initially offered at a sub-prime rate.
A.B. 8610
Provides that where a home improvement contractor is acting as a mortgage broker without being registered as required under the Banking Law, a mortgage banker, mortgage broker or exempt organization may not engage in such transaction with the contractor, and shall promptly notify the banking department that such person is acting as an unregistered broker.
Relates to home mortgage loans, tenant protections in foreclosed homes, the foreclosure process, the crime of mortgage fraud, and appropriations to the NYS housing trust fund corporation.
Passed Senate 5/13/09
S.B. 2367
S.B. 3956
Imposes certain requirements with respect to permissible interest rate discounts, interest rate increases and the use of negative amortization provisions in alternative mortgage instruments and removes the statutory provisions on graduated payment mortgage instruments which currently limit such provisions to mortgages on one to six family units given by a natural person.
S.B. 4875
Relates to refinancing of an existing mortgage loan; provides for a separate disclosure which compares monthly payments under the previous mortgage with the combined monthly payments for the new mortgage loan, property tax and insurance.
Clarifies that delivery fees charged by United States government agencies to borrowers do not count as points or fees in home loans, but risk-based fees charge by United States government agencies do count as discount points.
H.B. 1222
Signed by governor 8/7/09, Chapter 457
Updates the rate spread and high-cost home loans statutes, and makes a conforming change to the emergency program to reduce home foreclosures act.
S.J.R. 180
Supports the implementation of the Homeowners and Bank Protection Act.
H.B. 1319
Relates to rescission periods for mortgages.
Creates the Predatory Lending Prevention Act of 2009.
S.C.R. 1
Memorializes Congress to enact a Homeowners and Banks Protection Act for specific purposes.
H.B. 2188
Signed by governor 6/26/09, Chapter 603
Prohibits a mortgage banker, mortgage broker or loan originator from making, negotiating or offering to make or negotiate negative amortization loan without evaluating and verifying the borrower's ability to repay the loan. Requires a mortgage banker, mortgage broker or loan originator that advertises or solicits business and conducts transaction substantially in language other than English to provide the borrower with certain materials in the language in which the parties conduct the transaction.
H.B. 925
Regulating the amount of flood insurance coverage required by persons purchasing mortgages from lenders.
Passed House 4/29/09
Provides that a licensee engaging in the mortgage loan business shall not be or designate the exclusive recipient of notices or other communications sent from a lender or servicer to a consumer.
Signed by governor 6/29/09, Act 10
Provides that a mortgage lender may not reduce the available line of credit on a home equity open-end loan unless: (i) the lender pays for and provides a copy to the homeowner of a full written appraisal of the home completed within 30 days of written notice to the homeowner of proposed reduction of the available line of credit and considers any contrary appraisal evidence presented by the homeowner in writing at least 10 days prior to the proposed reduction date; or (ii) the lender provides written notice to the homeowner at least 180 days prior to the date of the proposed reduction of the available line of credit and considers any appraisal evidence presented by the homeowner in writing at least ten days prior to the proposed reduction date.
H.B. 570
Amends the Law of the Office of the Commissioner of Financial Institution; empowers the Commissioner to order the institutions that grant mortgage loans to grant moratoriums on repayment of principal for up to six months to families that due to loss or damage to their homes caused by earthquake, storm, cyclone, hurricane, fire or other disasters can not fully comply with the payment thereof.
Relates to the law to regulate the business of Puerto Rico Mortgage Loans; amends the law known as the Mortgage Institutions Act; imposes penalties.
H.J.R. 572
Directs all financial institutions in Puerto Rico, assigned to the Office of the Commissioner of Financial Institutions (OCIF) to establish a moratorium for fiscal years 2009-2010 and from 2010 to 2011, to pay the monthly amount of mortgage the principal residence of every public servant who has been involuntarily removed from his job in the Government of the Commonwealth, under the provisions of Law No. 7 of 9 March 2009.
Directs all financial institutions in Puerto Rico, assigned to the Office of the Commissioner of Financial Institutions (OCIF), to establish a moratorium for fiscal years 2009-2010 and from 2010 to 2011, to pay the monthly amount of mortgage the principal residence of every public servant who has been involuntarily removed from his job in the Government of the Commonwealth, as specified.
S.R. 412
Passed Senate 9/8/09
Orders the Committee on Banking, Consumer Affairs and Public Corporations to investigate the process and procedure of granting mortgage loans or refinancing residential or related to residential mortgage companies in Puerto Rico known as the Mortgage Banks, Mortgage Brokers, Mortgage Houses, Mortgage Lenders, or the like.
H.B. 5557
Requires creditors to provide a three year period extension to borrowers who are obligated to repay introductory rate mortgage loans on residential pr operties under certain circumstances.
H.B. 5781
Requires financial institutions that maintain state accounts to modify the interest rate of adjustable rate mortgages made in the state to a fixed rate of interest.
Allows the full payment of mortgage loans to be made at any time without penalty.
Requires the department of business regulations to promulgate rules and regulations which establish fair lending standards for the issuance of credit to Rhode Islanders.
Provides for the termination of acceptance of mortgage insurance premium payments and the return of escrowed mortgage insurance premiums by a lender who required mortgage insurance in connection with a consumer home loan transaction under certain circumstances.
Passed House 5/1/09
Enacts the "South Carolina Mortgage Lending Act", by adding Chapter 22 to Title 37 so as to require the licensing of a mortgage lender, loan originator, or someone acting as a mortgage lender; provides definitions; establishes qualifications for licensure and grounds for revocation, suspension, renewal, and termination; describes prohibited activities; provides for record-keeping, trust and escrow accounts, and annual reports; provides for enforcement through administrative action by the commissioner of the Consumer Finance Division of the Board of Financial Institutions and through criminal penalties, and provides for participation in a national mortgage registry; amends §§37-1-301, 37-3-105, 37-3-501, and 37-23-20, all relating to definitions in connection with mortgage lending and brokering and high-cost and consumer home loans, so as to conform definitions, and adds a definition for "adjustable rate mortgage"; amends §§37-23-40, 37-23-45, and 37-23-75, all relating to protections for the borrower in a high-cost or consumer home loan transaction, so as to require certain disclosures in connection with an adjustable rate mortgage; amends §29-4-20, relating to the definition of "reverse mortgage", so as to conform the definition; and amends Chapter 58, Title 40, relating to the registration of mortgage loan brokers, so as to change the registration requirements to licensing requirements, to conform definitions to those set forth in the South Carolina Mortgage Lending Act, requires certain professional courses, an additional year of experience, and a fingerprint check for mortgage brokers and loan originators, requires certain records be kept and made accessible, adds certain prohibitions in connection with a real estate appraisal, requires and prescribes mortgage broker agreements, authorizes enforcement by the Department of Consumer Affairs and prescribes administrative penalties including fines and injunctions and a criminal penalty, requires certain reports and filings, and provides for participation in a nationwide mortgage registry.
Memorializes the United States Congress to implement the Homeowners and Bank Protection Act.
Became law without governor's signature 6/3/09
Amends the Code of Laws of South Carolina, 1976, so as to enact the "South Carolina Mortgage Lending Act", by adding Chapter 22 to Title 37 so as to require the licensing of a mortgage lender, loan originator, or someone acting as a mortgage lender; provides definitions; establishes qualifications and requirements for licensure and grounds for revocation, suspension, renewal, and termination; describes prohibited activities; provides for record-keeping, trust and escrow accounts, and annual reports; provides for enforcement through administrative action by the commissioner of the Consumer Finance Division of the Board of Financial Institutions and through criminal penalties, and provides for participation in a national mortgage registry; amends §34-1-20, as amended, relating to appointment of members of the state Board of Financial Institutions, so as to provide for a representative of the mortgage bankers association; amends §34-1-110, as amended, relating to authority of certain financial institutions to engage in business, so as to provide for mortgage lenders and loan originators; amends §§37-1-301, 37-3-105, 37-3-501, and 37-23-20, all relating to definitions in connection with mortgage lending and brokering and high-cost and consumer home loans, so as to conform definitions, and includes certain adjustable rate mortgages as a high-cost home loan and defines "adjustable rate mortgage"; amends §§37-23-40, 37-23-45, and 37-23-75, all relating to protections for the borrower in a high-cost or consumer home loan transaction, so as to require certain disclosures in connection with an adjustable rate mortgage; amends §29-4-20, relating to the definition of "reverse mortgage", so as to conform the definition; and amends Chapter 58, Title 40, relating to the registration of mortgage loan brokers, so as to change the registration requirements to licensing requirements, conforms definitions to those set forth in the South Carolina Mortgage Lending Act, requires certain professional courses, an additional year of experience, and a fingerprint check for mortgage brokers and loan originators, requires certain records be kept and made accessible, adds certain prohibitions in connection with a real estate appraisal, requires and prescribes mortgage broker agreements, authorizes enforcement by the Department of Consumer Affairs and prescribes administrative penalties including fines and injunctions and a criminal penalty, requires certain reports and filings, and provides for participation in a nationwide mortgage registry.
H.C.R. 1009
Failed to pass House 2/18/09
Endorses the federal Homeowners and Bank Protection Act.
H.B. 8
S.B. 711
Limits fee that high-cost home loan lenders may charge for third or subsequent pay-off statement provided to borrower in 12-month period to $10.
H.B. 704
Requires that a mortgage counselor be consulted before an adjustable rate mortgage can be completed.
H.B. 1926
S.B. 749
Requires a lender of a high-cost home loan to verify that the borrower has received appropriate housing counseling.
Urges Congress to implement the Homeowners and Bank Protection Act.
H.B. 3179
Relates to the requirement of a net benefit in connection with a home loan that refinances an existing loan.
H.B. 3252
Makes a lender who knowingly violates provisions relating to high-cost home loans liable to a borrower for actual damages, injunctive relief, and reasonable attorney's fees.
Amends the Finance Code to prohibit a lender from making a home loan containing a provision for a prepayment penalty.
Requires counseling before closing certain home loans.
S.B. 723
Imposes an additional duty on mortgage brokers with respect to mortgage applicants.
Clarifies the relationship between the broker and the applicant by setting forth the duties of the broker. This includes practices and duties, as well as restrictions and prohibited practice. Additionally, because Texas’ current statutory definition of a “high-cost home loan” contemplates an interest rate so high as to likely apply to only a small number of loans, the bill creates a new category of “subprime” loans. The bill defines these loans and also sets forth specific provisions for them.
S.B. 1284
Relates to home loans and foreclosures on residential real property.
H.J.R. 29
Adopted 5/8/09
Urges Congress to enact a new Homeowner and Bank Protection Act.
Adopted 5/1/09
Urges that excessive fees for mortgages should be eliminated.
H.B. 1776
Signed by governor 3/27/09, Chapter 189
Signed by governor 3/27/09, Chapter 261
Prohibits a mortgage broker from failing to use reasonable skill, care, and diligence in exercising the broker's duty, which is created hereby, to make reasonable efforts to secure a mortgage loan that is in the best interests of the applicant, considering the applicant's circumstances and loan characteristics. A borrower who suffers a loss as a result of a breach of such duty may bring an action to recover actual damages.
H.B. 1787
Tabled 2/3/09
Prohibits licensed mortgage lenders and mortgage brokers and certain other persons exempt from the licensing requirements of the Mortgage Lender and Broker Act from committing to make a high-risk mortgage loan unless the prospective borrower has completed a homeownership education course that has been approved by the Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, the Bureau of Financial Institutions, or the Virginia Housing Development Authority.
Defines nontraditional mortgages.
S.B. 5858
Prohibits a mortgage broker from receiving a yield spread premium payment prior to or after the closing of a residential mortgage loan.
H.B. 3065
Signed by governor 5/8/09, Chapter 39
Relates to the requirement of a disclosure of a higher annual percentage rate in any refinancing or consolidation of a nonrevolving consumer loan or consumer credit sale and the requirement of a documentation of a reasonable, net tangible benefit to the borrower of any refinancing or consolidation of a nonrevolving consumer loan or consumer credit sale made under this article that is secured by residential real estate.
H.B. 3097
S.B. 709
Relates to the prevention of predatory lending practices.
Urges Congress implement the Homeowners and Bank Protection Act.
Requests the Joint Committee on Government and Finance study existing West Virginia law relating to the current mortgage crisis and its impact on the citizens of West Virginia and our financial institutions.
A.B. 471
This bill specifies that a mortgage broker has an agency relationship with the residential mortgage loan applicant or investor on whose behalf the mortgage broker provides, or contracts to provide, mortgage brokerage services (borrower). The mortgage broker owes all of the following duties to the borrower: 1. The mortgage broker must act in the borrower’s best interest and in the utmost good faith. The mortgage broker may not compromise the borrower’s rights or interests in favor of the mortgage broker’s or any other person’s. 2. The mortgage broker may not accept, give, or charge any undisclosed compensation or realize any undisclosed remuneration that inures to the benefit of the mortgage broker on an expenditure made for the borrower. 3. The mortgage broker must carry out all lawful instructions given by the borrower. 4. The mortgage broker must disclose to the borrower all material facts of which the mortgage broker has knowledge that might reasonably affect the borrower’s rights or interests or ability to receive the borrower’s intended benefit from the residential mortgage loan. This does not include facts that are reasonably susceptible to the knowledge of the borrower. 5. The mortgage broker must use reasonable care in performing the mortgage broker’s duties. 6. The mortgage broker must account to the borrower for all money and property received by the mortgage broker as the borrower’s agent. The bill does not prohibit a mortgage broker from contracting or collecting a fee for services provided, if the services were disclosed to the borrower before they were provided. The bill also does not require a mortgage broker to obtain a loan containing terms or conditions not available to the mortgage broker or to obtain a loan for the borrower from a mortgage lender with whom the mortgage broker does not have a business relationship. These duties may not be waived. The bill requires a mortgage broker, in each brokerage services contract and related disclosure statement, to identify the parties’ agency relationship and the mortgage broker’s duties.
H.B. 292
Prohibits lenders from requiring property insurance exceeding the value of improvements on real property; provides penalties.