Source: https://www.scribd.com/doc/35319777/5-17-10-Foreclosure-Law-Update-MBA-s-National-Mortgage-Servicing-Conference-and-Expo-2010-1
Timestamp: 2017-05-24 05:23:18
Document Index: 256868606

Matched Legal Cases: ['§ 45', '§ 45', '§ 47', '§ 7', '§ 24', '§ 6774', '§ 765', '§ 6', '§ 2945', '§ 479', '§ 5', '§ 501', '§ 2945']

5.17.10 Foreclosure Law Update MBA s National Mortgage Servicing Conference and Expo 2010[1] | Foreclosure | Mortgage Law
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Joel A. Freedman, Esq. JOHNSON & FREEDMAN, LLC 1587 Northeast Expressway Atlanta, GA 30329 Phone 770-234-9181 ext. 1119 Fax 404-329-8300 jafreedman@jflegal.com www.jflegal.com AL*, FL, GA*, MS, NC*, SC*, TN* and VA *Member of the FannieMae Retained Attorney Network John A. Doonan Doonan, Graves & Longoria, LLC 100 Cummings Center Suite 225D Beverly, Ma 01915 (978) 921-2670 jad@dgandl.com NY, MA,ME *Member of the FannieMae and Freddie Mac Retained Attorney Networks 3
Daniel C. Consuegra Law Offices of Daniel C. Consuegra 9204 King Palm Drive Tampa, Florida 33619-1328 Phone: (813) 915-8660 Cell: (813) 833-7057 Fax: (813) 915-0559 FL
T. Robert Finlay, Esq. Wright, Finlay & Zak, LLP 4665 MacArthur Court, Suite 280 Newport Beach CA 92660 (949) 477-5056 Direct (949) 477-5050 Main (949) 477-9200 Fax http://www.wrightlegal.net/ rfinlay@wrightlegal.net CA
Taylor HughesWattersAskanase Three Allen Center 333 Clay Street.Campbell@brockandscott. NC 28403 Ph : 910-392-4988 x1206 Fx : 866-887-9552 Brian.com *NC.Texas 77002 cat@hwa.6834 (fax) www. SC.com *TX Fannie Mae and Freddie Mac Designated Counsel
.Foreclosure Law Update
Brian Campbell* Brock & Scott. 29th Floor Houston.com 713. PLLC 5431 Oleander Drive Wilmington.759.2804 713.com www. South Carolina & Georgia Freddie Mac and Fannie Mae Designated Counsel
Carolyn A. GA Licensed in North Carolina.hwa.brockandscott.328.
Reisenfeld Reisenfeld & Associates 3962 Red Bank Road Cincinnati OH 45227 Telephone: 513-322-7000 Fax: 513-322-7099 Toll Free: 1-800-866-0831 * OH
4.Foreclosure Law Update
A record number of states revised foreclosure laws or enacted new requirements. in an effort to help delinquent borrowers save their homes. MEDIATION – A comparative analysis of state mediation requirements:
California.S.R. The panelists will discuss and analyze 2009 legislation affecting 1. New Jersey. M. Nevada. Connecticut. such as mandatory mediation. New York. FILING FEES – States imposing higher foreclosure filing fees
. Update 3. Florida.E. FORECLOSURE NOTICES 2.
Foreclosure Registration Requirements b. PROPERTY PRESERVATION – Before.Foreclosure Consultants
. REGULATORY OVERSIGHT a. Oversight and Enforcement 7.Foreclosure Law Update Table of Contents (continued)
5. during & after foreclosure 6. Agency Monitoring/Data Compilation c. LOSS MITIGATION .
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 Creates damages if declaration of compliance is insufficient or not recorded. but requires specified declaration as to why loan modification was denied. a borrower must be provided with an application for a loan modification and other foreclosure avoidance options.
12 Foreclosure Notices
2009 Statutory Changes
SBx8 38 (proposed)
 Prior to recording an NOD.  Prohibits combining collection activity with communication about foreclosure avoidance.5.  Deletes declaration requirements of 2923.
306 (Only until 1/2013)
 Extends from 14 to 20 days prior to sale the Notice of Sale to be filed in the county
S.B.306 (Only until 1/2014)
 Short pay requests to mortgagees
 Must respond within 21 days with an agreement in writing  Payoff statement must be good for at least 10 days
13 Foreclosure Consultants
B.531 (2008)
 Notice of sale to Borrowers increased from 15 days to 30 days prior to sale
 Must include contact info at mortgage servicer
14 Foreclosure Notices
 Trustee required to notify any party in default that they may be approached by parties offering to “save” their homes from foreclosure
 Statutory warning must be on canary yellow or similarly colored paper  Must be in English and Spanish  Must give Borrowers telephone number to Consumer Protection Unit of Attorney General
15 Foreclosure Notices
 Amends the notice of foreclosure to include directions to tenants regarding rights to remain on premises.B.Foreclosure Law Update
 Mortgage foreclosure deeds must state:
    Mortgagees name Name of contact person Street and mailing address Telephone number
H.B. Failure to provide notice results in $200 plus active damages  Purchaser at foreclosure sale must notify occupants within 7 days of sale confirmation
16 Foreclosure Notices
 Notice is to be sent to the address to “All Occupants” no earlier than 30 days and no later than 10 days prior to the foreclosure sale
17 Foreclosure Notices
H.B.4454
 Written notice of foreclosure to Borrower include:
         Reason for default Amount owed Name. foreclosure cannot commence for 90 days No foreclosure if Borrower abides by modification terms Statement that Borrower can contact an attorney and phone numbers of Michigan Lawyer Referral Service List of housing counselors Within 14 days of notice Borrower can request a meeting for a workout and request a housing counselor attend
18 Foreclosure Notices
. the mortgage servicer Name of person with authority to modify or make agreements Statement if Borrower requests a meeting. address and phone number of mortgage holder.
“conforming substantially to that contained in the mortgage” Time and place of sale Time allowed for redemption If an owner-occupied. Time to vacate must be stated by 11:59pm on the last day.  If mortgagor wants to reduce redemption period after the 1st publication notice.F. certain specific language must be included in the notice in all caps
19 Foreclosure Notices
. mortgagee.  Notice of sale is required to include:
      Mortgagor. notice must state date by which property must be vacated if loan not reinstated or property redeemed.1302 (effective for mortgages recorded after 9/1/2009)
 Modifies mortgage foreclosure notices  Must advise Borrower that foreclosure prevention counseling is available and lender must offer to refer Borrower to an approved agency. single family residence.Foreclosure Law Update
S. Notice must be given with notice of default. assignee if any Recording data Legal description.
city and zip code of mortgaged premises Name of servicer and lender Tax parcel number Mortgage ID number Name of residential mortgage originator if stated on mortgage
20 Foreclosure Notices
MINNESOTA (continued)  Notice of sale shall also include. if known:
     Physical street address.
 Foreclosure notices must be sent to tenants or subtenants in actual occupation of the property  Makes it unlawful to remove a Notice of Sale posted on the property  Landlord must give notice to prospective tenants if a property is subject of foreclosure
21 Foreclosure Notices
B.6607
 Lenders/servicers must provide a foreclosure notice to distressed Borrowers at least 90 days before any legal action is taken
22 Foreclosure Notices
address and telephone number for lender Lender account number Name. address and telephone number for trustee Contact data for Oregon State Bar lawyer referral service Advise Borrower that mediation process is mandatory Advise Borrower that each party will bear half the cost of mediation List documents required for mediation Advise Borrower that they are entitled to be represented at mediation by an attorney
 Within 30 days after notice of default sent.628 (sunset 1/2/2014)
 Notice of sale must be served at least 180 days before sale date on residential trust deeds  Notice of mandatory mediation in advance of trustee’s sale must include:
        Name.B.Foreclosure Law Update
S. to which Borrower may object within 10 days
23 Foreclosure Notices
. trustee must send 2nd notice with details of mediation and identify proposed mediator.
 Requires written notice of availability of foreclosure counseling 45 days prior to initiating foreclosure
 Must be in English and Spanish
24 Foreclosure Notices
.B.Foreclosure Law Update
S.B.5810
 Notice by 1st class mail and certified mail with return receipt to both occupants and tenants  Requires, prior to Notice of Default:
 Mortgagee contact the Borrower and explore alternatives to foreclosure  60 days written notice to tenant the foreclosure sale completed  Must advise tenants that they will have 60 days to vacate after sale. Nontenant occupants have 20 days to vacate.
 At least 30 days prior to sale, trustee must send notice to Borrower at last known address by 1st class mail and certified mail advising:
 Borrower has the right to contact the Department of Financial Institutions or legal aid hotline for possible assistance or referrals  Fore residential loans, the notice must state the name, address and telephone number of the owner of the note and the name, address and telephone number of any servicer.
25 Foreclosure Notices
MERS Litigation: the “Good”, the “Bad” and the (Potentially) “Ugly”
MERS – the Good, the Bad, and the Ugly
The “Bad”:  Landmark National Bank v. Kesler, 2009 WL 2633640 (Kan. 2009)  Bellistri v. Ocwen Loan Servicing, LLC, 284 S.W.3d 619 (MO. Ct. App. 2009)  In re Hawkins, 2009 WL 901766 (Bankr. D. Nev. 2009)
The (Potentially) “Ugly”:  Nevada (4), California (1) and Arizona (2)
• • • • • • • Lopez v. Executive Trustee Services, LLC, No. 3:09-cv-180-ECR-VPC (D. Nev.) Goodwin v. Executive Trustee Services, LLC, No. 3:09-cv-00306-ECR (D. Nev.) Green v. Countrywide Home Loans, Inc., No. 3:09-cv-00374-BES (D. Nev.) Dalton v. CitiMortgage, Inc. No. 3:09-cv-00534-RCJ (D. Nev.) Cervantes v. Countrywide Home Loans, Inc., No. 09-cv-517-JAT (D. Ariz.) Robinson v. GE Money Bank, No. 4:09-cv-227 (D. Ariz.) Vargas v. Countrywide Home Loans, Inc., No. 2:09-cv-2309-SJO (C.D. Cal.)
 Plaintiffs allege that the designation of MERS impermissibly splits the note from the security and thus rendered the note unsecured. Relies primarily on the negative Nevada BK decision.  Seeking to enjoin all foreclosures in CA/NV/AZ
Lehman Brothers Bank.2d 487 (Minn. 25. 2009)  Bucci v. CV 09-517PHX-JAT (D. 2:08-CV-1089-ECR-RJJ (D. 2009)  Ramos v. Ariz. Sept. and the Ugly
The “Good”:  Jackson v. No. Inc. Nev.MERS – the Good. 2009)  Cervantes v. Mortgage Electronic Registration Systems. 2009)
.I. 770 N. March 4. Ct. the Bad. Aug. No. 23... Super. FSB. Inc.. Mortgage Electronic Registrations System. 09-3888 (R. Countrywide Home Loans.W. Inc. No.
Court Order or Code
Nevada New Jersey New Mexico: First Judicial District. St./Louisville Maine Michigan
Pennsylvania: Bucks County Pennsylvania: Philadelphia County Pennsylvania: Northampton County 31
(Easton/Bethlehem)
Rhode Island: City of Providence
. Lucie counties): Collins Center
Florida: 9th Judicial Circuit Florida: 12th Judicial Circuit
(Desoto.Foreclosure Law Update – Mediation Current Status
California Connecticut Delaware Florida First Judicial Circuit
(Santa Rosa. Martin. Okaloosa. Walton counties): Collins Center
Mediation Currently Imposed by Legislation. Okochobeee. and Sarasota counties)
Ohio: Summit County
Oregon Pennsylvania: Allegheny County
Florida: 18th Judicial Circuit
(Brevard & Seminole counties)
Indiana Kentucky: Jefferson Co. Manatee.
New York Ohio: Cuyahoga County (Cleveland) Ohio: Lucas County
(Toledo/ Franklin County/Columbus)
Florida Eleventh Judicial Circuit
(Miami Dade County): Collins Center
Florida Nineteenth Judicial Circuit
(Indian River.
Foreclosure Law Update – Mediation Pending
Pending Legislation & Court Ordered Mediation  New Mexico  California  Ohio  Wisconsin  Massachusetts  Pennsylvania  Texas  Florida
Some states have local mediation programs in place while state program is pending
Foreclosure Law Update – Mediation Mediation at Present
 Mandatory and voluntary  No uniformity at present time  Mediation Features  Financial Statements in advance  Attendance
 Personal appearance  Telephone/Electronic
 Single or Multiple Mediations  Mediation Order  Pre-foreclosure Mediation  Attorney-supervised Mediation  Attorney communication  Servicer or Bank Mediation Department  Staff-level training
Foreclosure Law Update – Mediation Issues Specific to Florida
 Mandatory in most Florida counties  Florida Supreme Court order – a good model.  Pre-foreclosure Mediation  Attorney-supervised Foreclosure Mediation  Attorney communication  Servicer or Bank Mediation Department  Staff-level training
. but adoption  No uniformity at present time  Mediation Companies in Florida  Collins Center  Mediation. Inc.
www.Foreclosure Law Update
Mediations in Indiana.com
.reisenfeldlawfirm.
2009  Indiana Legislature signed Indiana Enrolled Act 492  30 days before filing complaint.Foreclosure Law Update – Mediations in Indiana
 May 7. mortgagee must provide written notice on a form proscribed by the Indiana housing and community development authority
     Notice Required by State Law Specifics of notice – required by Creditor – required by debtor What to include with the complaint? Next step – settlement conference
 If settlement conference is not required
Court will issue notice of settlement conference if debtor contacts them
 Court may order settlement conference any time prior to judgment  Settlement conference must be in writing within 7 days after the agreement is reached & should be turned in by Creditor
 If no agreement reached – Creditor must inform Court & FC Process can continue
OH General Assembly passed a law regulating the foreclosure process in OH
  88 counties have foreclosure mediation program Very complex process & requirements vary greatly
 All counties have own rules & regulations governing the mediation process  Important determinations to be made once file referred to mediation:
    Case stayed during mediation process? What stage was case immediately prior to referral? Attendance requirements for mediation Creditor & Borrower requirements prior to Mediation Hearing
 Mediation Hearing
 Two parts   Pre-mediation conference Full Mediation Hearing
 Best way to move cases through this process is reviewing borrowers’ financials ASAP
.Foreclosure Law Update – Mediations in Ohio
 2008 .
they have a small window of time to “opt in” to program  If they decline – the window closes and they lost their chance  If they accept – the MC scheduled conference – always on a Thursday  Creditor’s attorneys are required to attend conference
  Lender must be present via phone or in person FC process is not stayed for this process UNLESS Creditor’s attorneys fail to appear or cooperate
.Foreclosure Law Update – Mediations in Kentucky
 Jefferson County is only county in KY holding conciliation conferences
  Very loose structure – simple process Not getting great response
Once borrowers are served .
Orange County Mandatory Mediation Program  Requires parties to mediate a potential loan modification within days/weeks of a borrower filing a lawsuit and seeking a TRO to enjoin sale of property. but unclear as to when.  Servicer must attend mediation – personally?  A borrower must provide financial data to servicer prior to mediation.
Mandatory Mediation – 1 year later
 What’s happening at the mediations?  What’s causing the delay?  New litigation
Filing Fees: Florida-Specific Issues
.000 .Foreclosure Law Update – Florida-Specific Ideas
 Filing Fees in Florida
 < $50.$395  $50.000……………………….000…………….$900  > $250.000………………………$1900
 Implementation of Electronic Sales in Florida
Charlotte Manatee Sarasota
Dade Okaloosa Walton
Duval Pasco Palm Beach
.$250.
do you have standing?  MERS and the need for recorded assignments
. 2010  All complaints are verified under penalty of perjury  Do you own the note & mortgage.Foreclosure Law Update – Florida-Specific Issues
Verification of Complaints in Florida
 Effective February 11.
Monitoring. Data Compilation. Oversight & Enforcement
Send 45-Day Notice Letter 3. Non-SubPrime* 2.C. Register the loan with NC Commissioner of Banks * As defined by N.Foreclosure Law Update: Registration Oversight North Carolina – HB 2623 Commissioner of Banks
"§ 45-100. 1. et seq The Emergency Program to Reduce Home Foreclosures Act. SubPrime vs.
Foreclosure Law Update: Registration Oversight North Carolina “SubPrime” Loans SubPrime? “guilty until proven innocent”
 Originated before 1/1/05 => non-subprime  Originated after 12/31/07 => non-subprime  Loan amount over FNMA limits => non-subprime  2nd home / rental property => non-subprime  HELOC => non-subprime  Reverse Mortgage => non-subprime  Construction Loan => non-subprime  Vacant Land (at time of origination) => non-subprime  APR under allowable charts (need TIL) => non-subprime
. An itemization of any other charges that must be paid in order to bring the loan current A statement that the borrower may have options available other than foreclosure and that the borrower may discuss available options with the mortgage lender. 2. telephone number. and other contact information for the mortgage lender. 3. address. telephone number. and other contact information for one or more HUD-approved counseling agencies operating to assist borrowers in North Carolina to avoid foreclosure. telephone number. the mortgage servicer. the mortgage servicer. Department of Housing and Urban Development. Pre-foreclosure notice for subprime loans. or the agent for either of them who is authorized to attempt to work with the borrower to avoid foreclosure.S. or a counselor approved by the U. At least 45 days prior to the filing of a notice of hearing 1.
5. 6. The address. The address. An itemization of all past due amounts causing the loan to be in default.
4.Foreclosure Law Update: Regulatory Oversight 45-Day Notice Letter
§ 45-102. and other contact information for the consumer complaint section of the Office of Commissioner of Banks. The name.
and  Enter the date of the 45-Day Notice Letter
.Foreclosure Law Update: Regulatory Oversight North Carolina Commissioner of Banks Registration  Secured access Website  Log in using Mortgage Servicer’s identification  Enter loan’s details.
Foreclosure Law Update: Regulatory Oversight West Virginia HB 3082  Authorizes the Commissioner of Banking to establish appropriate forms and file requirements and procedures by rule  Provides for the reporting of foreclosure statistics by the Commissioner of Banking  Provides for the gathering and reporting of information pertaining to the sales of residential real estate pursuant to deeds of trust
Foreclosure Law Update: Regulatory Oversight South Carolina: Supreme Court Administrative Order  NO FC complaint* may be filed UNTIL HMP solicitation / evaluation has been completed  The reason for solicitation / evaluation HMP failure must be clearly identified in the complaint
* On a loan that is FMac. FMae or by HMP Servicer
Foreclosure Law Update: Regulatory Oversight NORTH CAROLINA SB 974
“Loss Mit Affidavit” Law
At the Hearing. Inquire as to the efforts of Lender. Servicer & Trustee toward foreclosure avoidance 2. If Yes. Clerk may continue the hearing for up to 60 days
. Would additional time be of assistance to borrower in avoiding foreclosure 3. if PRIMARY Residence… Clerk of Court shall
Foreclosure Law Update: Regulatory Oversight Hawaii HB1044  Requires written notification of intent to foreclose on properties encumbered by affordable housing property liens  Enables Hawaii housing finance and development corporation to more easily collect the value of shared appreciation equity and other restrictions on affordable housing property
but then you won’t have socks…
55 Foreclosure Consultants
Opportunists preying on distressed homeowners for easy profit ?
They may charm your socks off.
56 Foreclosure Consultants
23.239 if timely paid all rent payments □ Borrower made only one rent payment. 2001 WL 726940 (Mich. which was late
57 Foreclosure Consultants
. App. borrower entered into agreement (without legal counsel) to convey property to third party for $ 1 □ 3rd party agrees to redeem property for $ 38. Gregory.231 redemption price and lease back to borrower for 18 months □ Borrower had option to purchase at 18 months for $ 48.Foreclosure Law Update
London v. 2164732. 2001
□ 2 days before foreclosure final and owner’s equity of redemption expired. No. Feb.
3rd party moved to evict Court held: deed to third party treated as equitable mortgage presumable 3rd party must formally foreclose inequitable to allow 3rd party to acquire property valued at $ 120.231
□ Judicial propensity. absence of legal counsel or unequal bargaining power coupled with inadequate consideration
58 Foreclosure Consultants
.Entertain claims of fraud.Foreclosure Law Update
London v. forgery. undue influence. Gregory
At end of lease.000 for redemption price of $ 38. duress.
Foreclosure Consultant Regulation
59 Foreclosure Consultants
Administrative development and enforcement of mortgage fraud protection guidelines . Missouri. Minnesota. Michigan.Foreclosure Law Update
Mortgage Fraud Legislation .Restitution to victim of mortgage fraud . Nevada.Disclosures to borrowers/third parties . Florida. Texas
60 Foreclosure Consultants
. New Jersey.Creates private cause of action
. Mississippi.Criminal penalties
Representative states: Arizona.
Stat. § 47-18-5401
61 Foreclosure Consultants
. 6183 Maryland Real Prop. Stat. Code § 7-301 Minnesota Rev. Ch. § 24-5. Rev. §§ 6774-B. 940/05 Indiana Rev.Stat.450 New Hampshire Rev. 401 Nevada. Stat. Ch 645F. § 765. Stat. Ch. Ch. Rev.5-2-2 Maine. 325N Missouri Rev.Stat. § 6-1-1102 Illinois Compiled Stat. Code § 2945 Colorado Rev. Sec. § 479-B-1 Rhode Island Rev. Stat. Stat.300 -645F. 79 § 5-79-1 Tennessee.Foreclosure Law Update
Statutes Regulating Foreclosure Consultants
California Civ. Stat. Rev.
“Foreclosure Consultant” defined:
Solicits. represents. offers to any owner to perform for consideration a service to ▪ Stop or postpone a foreclosure sale ▪ Obtain forbearance ▪ Assist owner to exercise reinstatement right ▪ Obtain waiver of acceleration ▪ Assist owner in obtaining loan or funds advance ▪ Avoid credit impairment/restore credit ▪ Save home from foreclosure ▪ Assist in obtaining excess sales proceeds
62 Foreclosure Consultants
Person acting under express authority of HUD. real estate broker or sales person .Licensed lawyer.Lienholder. judgment creditor .Foreclosure Law Update
Exceptions to definition of “Foreclosure Consultant”
. FHA or other governmental agency Non-profit agency exempt under Internal Revenue Code § 501(cc)(3)
63 Foreclosure Consultants
.Licensed residential loan servicer or originator . certified public accountant.
Written agreements delineating scope of services . page requirements .Often prohibits foreclosure consultant from acquiring interest in residence
64 Foreclosure Consultants
. from whom. amount of compensationadvance payment generally prohibited . language.Limits when.Font size.1-4 family residential properties .Foreclosure Law Update
Scope of Foreclosure Consultant legislation
Civil and Criminal penalties and fines .Foreclosure Law Update
.Re-Purchase restrictions/prohibitions .Lease/Option restrictions .Rescission right .Formal Settlement .Post-conveyance accounting
65 Foreclosure Consultants
66 Foreclosure Consultants
. must be bona fide market sale
Missouri Nevada New Hampshire
3 days Until sold to BFP 5 days
No reference Prior notice. not > 15% of debt reduction 82% net proceeds to owner if sold w/in 18 months of conveyance
Reasonable ability to repaypresumed w/60% D/I ratio Reasonable ability to repaypresumed w/60% D/I ratio FC consultant cannot purchase Prohibited Reasonable ability to repay
82% net proceeds to owner if sold w/in 15 months of conveyance
Not unfair/commercially unreasonable FC consultant cannot purchase Prohibited No reference. not unconscionable
Reasonable ability to repaypresumed w/60% D/I ratio
Unconscionable if option price > 25% of purchase price 82% FMV and option price > 25% of purchase price
Until FC Consultant fully performs
82% of FMV or elimination all debt if not > 125% of purchaser’s costs
Reasonable ability to repayunreasonable w/o back-up documentation Reasonable ability to repay
66% net proceeds to owner if sold w/in 18 months of conveyance
Until transfer of property
$75 initial/one time fee.Foreclosure Law Update
FC consultant cannot purchase
All liens paid. full performance 90% net proceeds to owner if sold w/in 36 months of conveyance
3 days after contract signed
Civ. Chapter 630
Existing law broadly defines “Foreclosure Consultant” as one who helps a party in foreclosure for compensation and imposes regulations on such consultants (Cal.Foreclosure Law Update CALIFORNIA
S.B. Commissioner of Corporations can no longer terminate the finance lender’s exclusion
67 Foreclosure Consultants
.B. 94 excludes real estate licensee and finance lender from definition when acting under authority of the license. 94 Signed by governor 10/11/09.) S. Code § 2945 et.seq.
Foreclosure Law Update DELAWARE
H. C. Ch 24B)
68 Foreclosure Consultants
.B. Chapter 213
Requires that businesses offering to negotiate modification of residential mortgage loans in foreclosure comply with the “Mortgage Rescue Fraud Protection Act” ( 6 Del. 232 Signed by governor 10/05/09.
34) Prohibits certain conduct relating to the acquisition of an ownership interest in distressed property by licensed real estate brokers and salespersons. Act 66 □
Excludes licensed real estate brokers and salespersons from definition of distressed property consultants in the Mortgage Foreclosure Rescue Fraud Prevention Act.Foreclosure Law Update HAWAII
S.B.B.B.34) Amends definition of "distressed property consultant" to exclude certified public accountants (S. (S.B. 34/35 Signed by governor 5/20/09.35)
69 Foreclosure Consultants
. (S.
Prohibits a person from engaging in. 1176 Signed by governor 4/30/09.Foreclosure Law Update INDIANA
H. a real estate or mortgage transaction without a permit or license required by law. Public Law 52 □
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.
70 Foreclosure Consultants
.B. or soliciting to engage in.
.a mortgage or real estate transaction.. 1176)
Prohibits making certain representations with respect to: .
71 Foreclosure Consultants
.the property that is the subject of the transaction.B.Foreclosure Law Update INDIANA
□ (H. or .if the representation is not true and the person knows or reasonably should know that the representation is not true.
Foreclosure Law Update MAINE
L. 503 (An Act to Regulate Foreclosure Negotiators) Signed by governor 6/09/09. in additional to all other legal remedies
72 Foreclosure Consultants
.D. Public Law 327 Effective date: 1/1/2010 □
Must act in good faith with fair dealing when providing debt management services relating to consumer’s residential mortgage
Foreclosure Law Update MAINE (L. written notice to consumer including: right to cancel names & contact numbers for 3rd party housing counselors approved by HUD.An Act to Regulate Foreclosure Negotiators)
If the services include sale or transfer of an interest in real property.D. whether consumer will be liable for deficiency
73 Foreclosure Consultants
. 503.
903 Signed by governor 5/21/09.F.Foreclosure Law Update MINNESOTA
H. Public Chapter 14
Broadens definition of “services” provided by foreclosure consultant to include those performed on behalf of parties other than the owner of a residence in foreclosure
74 Foreclosure Consultants
Foreclosure Law Update NEVADA
A.B. Chapter 330
Defines the term “loan modification consultant” Requires licensing of foreclosure consultant 20 pre-licensing hours of instructions
.must post bond
75 Foreclosure Consultants
.continuing legal education requirements . 152 Signed by governor 5/13/09.
B. □ Must deposit compensation into trust account.Foreclosure Law Update NEVADA (A. withdraw only when service completed Maintain records of compensation receipt/disbursement Expands definition of “homeowner” to include “record owner of “residence” and delete requirement that residence be in foreclosure
76 Foreclosure Consultants
□ Executed agreement with homeowner required before initial foreclosure rescue action.
Foreclosure Law Update NEVADA (A.B. 152)
□ Exempts attorney at law from definition of foreclosure consultant unless attorney’s services are in the course of his employment by or affiliation with a mortgage broker or mortgage agent
77 Foreclosure Consultants
B.Foreclosure Law Update TENNESSEE
H.Engaging in unfair. .Not honoring consumer’s request to cancel agreement and refund monies paid within 10 business days
78 Foreclosure Consultants
.Initiating foreclosure rescue services without a written agreement with the homeowner. and/or misleading acts . Amends Public Chapter 196
Prohibits foreclosure consultants from . false.Inducing a homeowner to sign an agreement not legally complaint . deceptive. 2218 Signed by governor 5/13/09.
B.date of agreement cannot be earlier than the date borrower signs . telephone number and electronic email address of foreclosure consultant .signed by both parties . 2218)
Requires written agreement .includes name. physical address.12 point upper case type .Foreclosure Law Update TENNESSEE
(H.provide copy of agreement to homeowner to review at least 1 business day before homeowner signs .includes right of cancellation
79 Foreclosure Consultants
(H.right cannot be waived or modified by homeowner
.right to cancel without penalty within 3 business days after
80 Foreclosure Consultants
. all payments to foreclosure consultant must be returned to homewoner within 10 business days after receipt of cancellation notice.must appear above signature line in at least 12-point upper case type that substantially conforms with statute
. 2218)
Written Notice of Cancellation
.if rescission exercised.
Provide homeowner with copy of signed agreement within 3 hours after signing
Non-compliant agreement VOID and UNENFORCEABLE
81 Foreclosure Consultants
.B.Foreclosure Law Update TENNESSEE
B.Foreclosure Law Update WASHINGTON
H. Chapter 15
Exempts licensed real estate brokers and salespersons from the definition of "distressed home consultant" when the broker or salesperson is providing services governed under the real estate brokerage laws and the services do not result in a distressed home conveyance Specifies that offering certain services does not make a person a distressed home consultant when the homeowner is represented by an attorney or a licensed real estate broker or salesperson in the transaction. 1132 Signed by governor 3/25/09.
82 Foreclosure Consultants
What was the first state to enact mortgage fraud legislation? ○ ○ ○ ○ ○ California Florida Georgia New York Pennsylvania
In what state is the most expensive real estate returned to the lender as a Deed In Lieu of foreclosure? ○ ○ ○ ○ ○ California Florida Hawaii Nevada New York
Trivia Question # 3
In what state was the longest contested foreclosure pending? ○ ○ ○ ○ ○ California Michigan New Mexico Ohio Texas
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