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January 18, 2008
State Lawmakers Act Aggressively on Foreclosures
The California Assembly recently approved bills aiming to reform the mortgage industry; and similar legislation is up for consideration in Indiana, Utah, Illinois, Maryland, New Hampshire, West Virginia, New York and Kentucky. The bills passed in California would mandate that lenders inform borrowers of pending rate resets and submit reports about subprime mortgage modifications, and they also would establish a registration and surety bond requirement for servicers. Meanwhile, the state Senate Banking Committee is expected to pass a measure that would force lenders to engage in loan workouts instead of filing foreclosures, extend the notification period prior to foreclosure and levy $1,000-per-day fines on lenders that do not maintain foreclosed homes.
Posted by S. Germain at January 18, 2008 08:00 AM