New Year Brings New Industry Legislation
Legislation Update
February 7, 2018
Georgia
HB 676
Status: The bill was Introduced on January 11 and current status states “Jan/19/2018 – House Second Readers”.
Legislative Summary
A BILL to be entitled an Act to amend Article 1 of Chapter 14 of Title 44 of the Official Code of Georgia Annotated, relating to mortgages, conveyances to secure debt, and liens, in general, so as to provide protections for military service members in the event of foreclosures or other proceedings to enforce secured obligations; to define a term; to provide for applicability; to provide for related matters; to repeal conflicting laws; and for other purposes.
Source: Georgia General Assembly (HB 676 full text)
Massachusetts
H.655
Status: The bill was referred to the Committee on Housing on January 23.
This bill proposes to provide tenants in properties to be sold at foreclosure or by short sale a right of first refusal to purchase the property.
Source: Massachusetts Legislature (H.655 full text).
Additional Resource:
City of Boston (FAQ page detailing H.655)
Mississippi
Two similar bills were introduced and referred To Banking and Financial Services:
HB 579
Full Title:
AN ACT TO ESTABLISH, AS AN ALTERNATIVE TO ANY OTHER FORECLOSURE PROCEDURE AUTHORIZED BY LAW, PROCEDURES FOR THE FORECLOSURE OF MORTGAGES BY ADVERTISEMENT UNDER WHICH A BORROWER MUST BE GIVEN AN OPPORTUNITY TO MEET WITH A LENDER REGARDING MODIFICATION OF A MORTGAGE LOAN ON A PRINCIPAL RESIDENCE BEFORE FORECLOSURE PROCEEDINGS MAY BE BEGUN; TO PROHIBIT A PARTY FROM BEGINNING FORECLOSURE PROCEEDINGS BY ADVERTISEMENT IF THE PRESCRIBED PROCEDURES HAVE NOT BEEN FOLLOWED OR THE APPLICABLE TIME LIMITS HAVE NOT EXPIRED, OR IF THE PARTIES HAVE AGREED TO MODIFY THE LOAN AND THE BORROWER IS NOT IN DEFAULT; TO REQUIRE A FORECLOSING PARTY, BEFORE PROCEEDING WITH A FORECLOSURE SALE BY ADVERTISEMENT, TO MAIL TO THE BORROWER A WRITTEN NOTICE CONTAINING SPECIFIED INFORMATION, INCLUDING THE NAME OF A DESIGNATED CONTACT PERSON WHO WILL HAVE THE AUTHORITY TO MAKE MODIFICATION AGREEMENTS AND A LIST OF APPROVED HOUSING COUNSELORS; TO ALLOW THE BORROWER TO BRING AN ACTION TO ENJOIN THE FORECLOSURE IF THE REQUIRED NOTICE WAS NOT SERVED; TO REQUIRE THE BORROWER TO CONTACT A HOUSING COUNSELOR IF HE OR SHE WISHES TO WORK OUT A MODIFICATION, AND REQUIRE THE COUNSELOR TO SCHEDULE A MEETING WITH THE DESIGNATED CONTACT PERSON; TO PROVIDE THAT FORECLOSURE PROCEEDINGS MAY NOT BE BEGUN UNTIL 90 DAYS AFTER THE NOTICE WAS SENT, IF THE BORROWER REQUESTS A MEETING; TO REQUIRE THE BORROWER, THE DESIGNATED PERSON, OR THE HOUSING COUNSELOR TO CALCULATE A MODIFIED PAYMENT IF THE MEETING DOES NOT RESULT IN AN AGREEMENT; TO REQUIRE THE MISSISSIPPI HOME CORPORATION TO PREPARE A LIST OF APPROVED HOUSING COUNSELORS; TO AMEND SECTIONS 89-1-55 AND 89-1-57, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.
Source: Mississippi Legislature (HB 579 full text)
HB 563
Full Title:
AN ACT TO ESTABLISH PROCEDURES FOR THE FORECLOSURE OF MORTGAGES BY ADVERTISEMENT UNDER WHICH A BORROWER MUST BE GIVEN AN OPPORTUNITY TO MEET WITH A LENDER REGARDING MODIFICATION OF A MORTGAGE LOAN ON A PRINCIPAL RESIDENCE BEFORE FORECLOSURE PROCEEDINGS MAY BE BEGUN; TO PROHIBIT A PARTY FROM BEGINNING FORECLOSURE PROCEEDINGS BY ADVERTISEMENT IF THE PRESCRIBED PROCEDURES HAVE NOT BEEN FOLLOWED OR THE APPLICABLE TIME LIMITS HAVE NOT EXPIRED, OR IF THE PARTIES HAVE AGREED TO MODIFY THE LOAN AND THE BORROWER IS NOT IN DEFAULT; TO REQUIRE A FORECLOSING PARTY, BEFORE PROCEEDING WITH A FORECLOSURE SALE BY ADVERTISEMENT, TO MAIL TO THE BORROWER A WRITTEN NOTICE CONTAINING SPECIFIED INFORMATION, INCLUDING THE NAME OF A DESIGNATED CONTACT PERSON WHO WILL HAVE THE AUTHORITY TO MAKE MODIFICATION AGREEMENTS AND A LIST OF APPROVED HOUSING COUNSELORS; TO ALLOW THE BORROWER TO BRING AN ACTION TO ENJOIN THE FORECLOSURE IF THE REQUIRED NOTICE WAS NOT SERVED; TO REQUIRE THE BORROWER TO CONTACT A HOUSING COUNSELOR IF HE OR SHE WISHES TO WORK OUT A MODIFICATION, AND REQUIRE THE COUNSELOR TO SCHEDULE A MEETING WITH THE DESIGNATED CONTACT PERSON; TO PROVIDE THAT FORECLOSURE PROCEEDINGS MAY NOT BE BEGUN UNTIL 90 DAYS AFTER THE NOTICE WAS SENT, IF THE BORROWER REQUESTS A MEETING; TO REQUIRE THE BORROWER, THE DESIGNATED PERSON, OR THE HOUSING COUNSELOR TO CALCULATE A MODIFIED PAYMENT IF THE MEETING DOES NOT RESULT IN AN AGREEMENT; TO REQUIRE THE MISSISSIPPI HOME CORPORATION TO PREPARE A LIST OF APPROVED HOUSING COUNSELORS; TO AMEND SECTIONS 89-1-55 AND 89-1-57, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.
Source: Mississippi Legislature (HB 563 full text)
New Jersey
AB 705
Full Title:
New Jersey Servicemembers Civil Relief Act
Status: The bill was introduced and referred to Assembly Military and Veterans’ Affairs Committee.
NOTE: AB 705 mirrors AB 994 from last session and earlier legislation
Source: New Jersey Legislature (AB 705 full text)
S 282
Status: The bill was introduced in the Senate and referred to the Senate Community and Urban Affairs Committee on January 9.
Synopsis
Requires mortgage lenders to maintain vacant, age-restricted dwelling units during foreclosure.
Source: New Jersey Legislature (S 282 full text)
New York
AB 8984
Status: The bill was introduced and referred to the Judiciary Committee on January 9.
The legislation would add the following requirement:
“If the plaintiff in a residential mortgage foreclosure action is other than a natural person, the plaintiff shall notify the municipal clerk of the municipality in which the real property is located within five calendar days of the filing of the notice of pendency for the foreclosure action.”
Source: New York State Assembly (AB 8984 full text)
West Virginia
HB 3025
Status: The bill was introduced and referred to House Political Subdivisions on January 10.
The purpose of this bill is to grant county commissions the plenary power and authority to establish by ordinance vacant building registration programs; setting forth procedures for administration and enforcement of those programs.
NOTE: HB 305 is a re-introduction of a bill from last session.
Source: West Virginia Legislature (HB 3025 full text)
Wisconsin
AB 818
Status: The bill was introduced on January 10 and executive action was taken on February 6.
This proposed bill makes various changes to condominium law and rights related to first mortgage security interests in condominium units.
Source: Wisconsin State Legislature (AB 818 full text)
