Contact: Lauren Stewart Policy Analyst, 202-624-5332 January 13, 2010 2009 State Residential Mortgage Foreclosure Laws Executive Summary In 2009, 33 states and Puerto Rico enacted at least 99 new laws addressing foreclosure and mortgage issues.1 The new laws address three basic areas: mitigation, neighborhood stabilization, and prevention of bad loans. However, because foreclosures remained at historically high levels in 2009, states concentrated on strategies to mitigate foreclosures. In fact, of the 99 laws examined, 67 address foreclosure mitigation strategies. Beyond those, 15 laws address neighborhood stabilization and 12 address preventing bad loans. The reason states emphasized these areas is because the latest wave of home foreclosures was driven by the job losses and economic recession during 2009. This economic climate helped accelerate delinquency rates among borrowers, which prompted many states to respond with policies to prevent bad loans in the future. The economic conditions also hindered the recovery of the housing market, which made neighborhood stabilization especially important for states in 2009. Above all, the weak economic climate of 2009 compelled states to use mitigation as the primary strategy because it is the most direct way to lower foreclosure rates. Included in the legislation from 2009 are new ideas in addition to those that build upon existing programs. Among the highlights from 2009 are: • New laws enacted in states like Colorado, Delaware, Iowa, Indiana, Michigan, and Minnesota, which make it mandatory to include foreclosure assistance resources with all foreclosure notices issued in their states;2 • New laws enacted in states like California, Colorado, Michigan, New Jersey, and Nevada, which give homeowners a breathing period in which the foreclosure process is deferred or suspended;3 • Laws enacted in states like Colorado, Illinois, Maryland, Maine, and Oregon, which strengthen protections for renters in foreclosed properties;4 and • Reporting requirements enacted in several states including Colorado, Connecticut, and Indiana, which are related to foreclosure activity to guide response.5 Together, the new responses reflect the continued leadership role of states in addressing foreclosures and the ability of states to act as laboratories as new programs are tested. Page - 2 – 2009ForeclosureLawsBrief Overview States’ foreclosure response has primarily focused on three areas during 2009: mitigating the risks and consequences of foreclosure, stabilizing neighborhoods, and preventing bad loans from occurring in the future. The foreclosure crisis in the United States has occurred in successive “waves” over the past three years, prompting states to continue responding. Despite some successful state and federal actions to address foreclosure, foreclosure levels remain high and the housing market remains weak. The economic recession and unemployment—which reached a 26-year high of 10.2 percent in October 20096—have created new issues for states to deal with in addition to the existing challenges related to foreclosure. For example, the latest wave of foreclosures has hit a whole new demographic: borrowers with good credit and good loans. In May 2009, the Mortgage Bankers Association reported that prime borrowers accounted for the largest share of new foreclosures.7 As a result, states have faced new challenges in 2009. The first wave of residential mortgage foreclosures occurred in 2006 as a result of a spike in risky borrowing and early payment defaults associated with the belief that housing prices would continue to rise.8 Overextended buyers and predatory lenders contributed to the high rates of default that characterized this wave, which resulted in an estimated 2.4 million borrowers losing their homes to foreclosure.9 In response, many states stepped up outreach to borrowers in the form of housing counseling and financial education. States also began to crack down on the lending industry as default rates and toxic mortgages climbed. These strategies are discussed in the NGA Center’s first foreclosure Issue Brief, State Strategies to Address Foreclosure. The second wave of home foreclosures occurred in 2007 when the subprime mortgage loans originating in 2005 began to reset, resulting in another round of loan delinquencies that caused unprecedented levels of foreclosure. According to Mark Zandi of Moody’s Economy.com, the average subprime mortgage payment rose from $1,200 to $1,550 per month.10 Borrowers driven into debt during this second wave could no longer use their homes to leverage equity because of the ailing housing market, compounding the situation. In February 2009, the NGA Center released a second report on state responses to foreclosure, Emerging Trends: State Actions to Tackle the Foreclosure Crisis. The report found that states had moved to adopting more aggressive and creative responses to foreclosure during this particular wave, expanding the focus from reactive to proactive. Three overarching trends were highlighted in the report: mitigation, stabilization, and prevention. Because current foreclosure levels remain at historical highs, the state response in 2009 has emphasized mitigation. The State Response Many of the new state foreclosure laws address the third wave of foreclosures, which has been largely driven by job losses. In August, Moody’s Economy.com estimated that 1.8 million borrowers could lose their homes in 2009, up from 1.4 million in 2008.11 Furthermore, the Mortgage Bankers Association predicts that the recession’s impact on the market in 2009 could send foreclosure rates up through the end of 2010.12 The Appendix on page 11 lists the foreclosure-related laws enacted during 2009 in response to these circumstances. Page - 3 – 2009ForeclosureLawsBrief The economic recession and job losses shaped state responses during 2009. In the past, state strategies to address foreclosure focused largely on mitigation efforts because mitigation is the most direct way to lower foreclosure rates. Because foreclosure rates have not slowed over the past few years—the rate of foreclosure filings has actually increased almost 25 percent at this writing, compared with the same period in 200813—states continued to emphasize mitigation over other strategies in 2009. In fact, of the 99 laws examined in this paper, 67 addressed mitigation, 15 addressed neighborhood stabilization, and 12 addressed preventing bad loans. New strategies also emerged that are unique to the third wave, such as an emphasis on foreclosure timeouts so that homeowners can pursue alternatives to foreclosure. Mitigating the Risks and Consequences State strategies to address foreclosure in 2009 focused largely on mitigating the risks and consequences of foreclosure in an effort to help homeowners stay in their homes. About three- quarters of the laws enacted during 2009 were mitigation efforts, including outreach campaigns and direct assistance. Many states began these programs as early as 2007: hosting events, launching hotlines, and creating Web sites to match homeowners with the assistance they need to avoid foreclosure. State responses to foreclosure in 2009 not only included strengthening and/or expanding these existing programs, but also introducing new priorities. The strategies that gained states’ attention in 2009 include encouraging alternatives to foreclosure through loan workouts, better protecting tenants of foreclosed properties, and finding innovative ways to maintain funding for foreclosure prevention efforts in the future. Connecting Homeowners with Foreclosure Prevention Resources Connecting troubled homeowners with resources was a widespread state response to foreclosure that continued into 2009. Now, however, many states have enhanced previous efforts to make them more effective. States like Colorado, Delaware, Iowa, Indiana, Michigan, Minnesota, and Washington have made it mandatory to include assistance resources with all foreclosure notices issued in their states.14 Delaware requires all foreclosure notices to explicitly encourage homeowners to use the state’s Residential Mortgage Foreclosure Prevention Program.15 Similarly, Michigan’s HB 4454 requires foreclosure notices to be accompanied by a list of counselors and contact information for the State Bar Association of Michigan’s referral service.16 Minnesota has taken the opposite approach with SF1302, requiring instead that the party foreclosing a mortgage must submit the homeowner’s contact information to an approved foreclosure prevention agency. Washington’s ESB 5810 requires that renters and borrowers receive information regarding resources and rights, and that lenders have in-person conversations with borrowers 30 days prior to initiating foreclosure proceedings. Other states have taken a more direct approach to connecting troubled homeowners with assistance: simply making it mandatory during the foreclosure process. Connecticut and Maine, for example, each passed laws in 2009 making voluntary mediation programs mandatory for homeowners as they go through foreclosure.17 Connecticut SB 948 requires that for any foreclosure commenced between July 1, 2008, and June 30, 2009, a borrower must be notified of the state mediation program within three days and a mediation must commence within fifteen days thereafter.18 Maine enacted LD 1418 in June 2009, adding a new mandatory foreclosure mediation program for borrowers and a hotline linking mortgagors and HUD-certified housing counselors.19 Page - 4 – 2009ForeclosureLawsBrief Encouraging Alternatives to Foreclosure States have begun to put a strong emphasis on encouraging alternatives to foreclosure, with many even offering a timeout period in the foreclosure process as an incentive. States like California, Colorado, Michigan, New Jersey, and Nevada enacted new laws to give homeowners a breathing period in which the foreclosure process is deferred or suspended.20 California instated a 90-day deferment on home foreclosures in February 2009 through AB 7. The deferment applied to certain loans originating between 2003 and 2008 as part of the state’s effort to lower the rates of foreclosure and give borrowers a fair shot at financial stability. Lenders can be exempted from the deferment if they have a comprehensive loan modification program in place that has been approved by the state. Other states instituted similar breathing periods but tied the opportunity to certain conditions. Michigan, for example, enacted HB 4454 in May 2009, requiring the homeowner to contact an approved counselor within 14 days in order to receive a 90-day foreclosure deferment. Likewise, Colorado enacted HB 1276 in June 2009 to allow a 90-day foreclosure deferment as long as the homeowner agrees to contact a HUD- approved housing counselor within 20 days. In addition, the borrower must agree to pay at least two-thirds of the amount of their monthly payments during the “timeout” period. The counselor will then determine whether or not a foreclosure deferment is appropriate on a case-by-case basis. Some states’ new laws work to incorporate the courts in the timeout process. North Carolina’s law, enacted in September 2009, empowers the courts to decide whether to grant homeowners a 60-day deferral of foreclosure proceedings.21 Similarly, Delaware established a program giving homeowners the opportunity to defer the foreclosure process if they choose to participate in a court mediation process with their lender.22 Other states have established timeout periods that are tied to mediation. In Iowa, SF 364 requires the courts to authorize the postponement of a sheriff’s sale while a homeowner pursues foreclosure counseling or mediation.23 Nevada’s AB 149, which became effective on July 1, 2009, allows homeowners a timeout period that lasts indefinitely as soon as mediation is requested.24 New Jersey’s AB 3821 allows a six-month forbearance period to borrowers who seek mediation and counseling.25 Furthermore, New Jersey’s bill contains a clause specifying that interest rates on high-risk loans cannot increase during the period. Washington’s SB 6033 creates the Prevent or Reduce Owner-Occupied Foreclosure Program to assist homeowners through loan workouts and modifications.26 States have also taken steps to ensure homeowners have enough time to reach a satisfactory loan workout. Maryland and Nevada enacted legislation to ensure homeowners have this option throughout the entire foreclosure process—until one day before the foreclosure sale in Maryland and up to five days before the sale in Nevada.27 Nevada’s bill also establishes a state Foreclosure Mediation Program.28 Finally, some states have looked at ways to help homeowners stay on track with their loan payments. For example, New Mexico passed legislation waiving the prepayment penalties on home loans for both single-family homes and mobile homes in an effort to help borrowers stay on track with their loan payments. Page - 5 – 2009ForeclosureLawsBrief Protecting Renters Protecting the tenants of foreclosed properties has become increasingly important to states’ foreclosure responses. An estimated 38 percent of foreclosures were filed on multi-family properties in 2008, indicating that a great number of renters will be affected in 2009 and beyond.29 States have taken action to ensure that renters know their rights, are made aware of foreclosure filings on their property, and are protected from sudden eviction. At the same time, states are also establishing their own protections for tenants. In April 2009, Colorado enacted HB 1227, making it a criminal offense for property-owners to continue to collect rent from a renter after a foreclosure sale.30 Delaware passed SB 141 requiring the landlord of a rental property to clearly communicate all future rent increases up front in the rental agreement.31 Illinois enacted legislation requiring lenders to provide notification if a foreclosed property is acquired and before the current tenants are required to move.32 Similarly, Maryland enacted S.B. 842 to require foreclosure notices to be addressed to “all occupants” in an effort to keep tenants better informed. In June 2009, Maine enacted a law stating that a foreclosure will not terminate tenancy. Maine also passed an emergency measure earlier this year, creating a commission to study ways to keep tenants in their homes after foreclosure.33 Finally, Oregon S.B. 952 allows tenants to apply security deposit or prepaid rent to pay rent obligations after receiving notice of foreclosure. Financing Foreclosure Mitigation Efforts Some states have enacted laws aimed at supporting and maintaining the mitigation efforts. The economic recession has made the financial issues facing borrowers even more complex and impeded the ability of states to provide assistance. Still, since foreclosure has remained a pressing issue, states have found ways to finance responses. Arkansas, for example, passed legislation in 2009 creating the Arkansas Housing Trust Fund to pay for the state’s foreclosure counseling efforts.34 Similarly, Colorado enacted H.B. 1213, paving the way for the state’s Housing Development Trust Fund to provide grants or loans to finance foreclosure prevention efforts.35 Indiana enacted legislation to specify that mortgage foreclosure counseling and education programs will be funded through the state’s general fund.36 New Jersey established a consent agreement to help subprime borrowers facing foreclosure. Through the agreement, a $3.67 million foreclosure relief fund has been created to fund mortgage modification programs in the state and directly assist homeowners.37 Newly enacted legislation in Washington directs certain agencies to partner to administer the Prevent or Reduce Owner-Occupied Foreclosure Program, designed to help homeowners avoid foreclosure through mediation and outreach. The legislation establishes a fund to support the program, with allocations from the general fund and private contributions. The bill stipulates that a maximum of 4 percent of the fund can be used for administrative expenses, and the remainder will be used for modifications and outreach, including maintaining a pool of volunteers among lawyers, counselors, and other housing experts.38 Financing foreclosure prevention and mitigation efforts will be increasingly important for states in the future as the federal government’s temporary programs sunset. Page - 6 – 2009ForeclosureLawsBrief Neighborhood Stabilization Neighborhood stabilization continued to be important for states in 2009. The housing market remains weak, making it difficult for communities to rebound after being hit by foreclosures. Home prices continued to decline and the housing inventory increased 7.3 percent in 2009, leaving states to deal with vacancies, which can bring down property values further and worsen the already weak market.39 In response, states stepped up efforts to encourage the purchase of homes, maintain the value of foreclosed properties, and create tracking databases for foreclosure activity to help guide response. Encouraging Repurchase The inability of homeowners to sell their homes in order to pay off debts is one of the biggest factors exacerbating the continued waves of foreclosure. In addition, high neighborhood vacancy levels further depress sales. Some states responded by passing laws intended to attract new home buyers to fill the homes. Georgia, for example, enacted HB 261 in May 2009 to offer a homebuyer tax credit for the purchase of single-family residences. Maintaining the Value of Foreclosed Properties High vacancy levels can destabilize communities, bring down property values, and lead to increases in crime and pests. In response, several states enacted legislation to deal with home vacancies. For example, North Dakota enacted SB 2232 in January 2009, setting a 60-day limit on the amount of time a foreclosed home may remain vacant before a sheriff’s sale is arranged.40 Some states passed laws to specify the party responsible for maintaining the property. Illinois enacted H.B. 621 in August 2009 to allow a township to provide for certain aspects of property maintenance after foreclosure, such as yard maintenance, within one week of notifying the property owner. Furthermore, the bill allows the township to collect compensation from the owner for the cost of the maintenance.41 Similarly, Minnesota enacted S.F. 1147, empowering the housing authority of the municipality to secure an abandoned property after two weeks. The bill also establishes fines for failure to maintain property and allows any costs incurred after the foreclosure sale related to maintenance to be added to the property’s redemption price.42 Nevada passed a law in May 2009 allowing a unit-owners’ association access to a foreclosed property for the purpose of maintenance and upkeep.43 Connecticut passed legislation empowering municipalities to enforce property maintenance. The law also states that the property must be registered with the municipality within 10 days of becoming vacant.44 Managing and Tracking Collecting data on where and when foreclosures are occurring is critical to states’ foreclosure responses. Accordingly, several states have enacted reporting requirements to foster data collection. States like Colorado, Connecticut, and Indiana enacted requirements that foreclosures must be reported to local governments within a certain amount of time.45 Colorado enacted HB 1197 in April 2009 requiring the Colorado Division of Housing to gather and report data regarding home foreclosures in each county. The data reported must include the number of foreclosure notices filed and the total number of properties sold at auction each quarter. The report also must provide analysis comparing statistics over time and between counties. Finally, the report must forecast for the next quarter and the next year. Indiana’s new law requires that Page - 7 – 2009ForeclosureLawsBrief the property must be reported to both HUD and the recorder of the county immediately after a foreclosure sale.46 Preventing Bad Loans Preventing foreclosures is critical to the future health of states’ economies and communities. More than a dozen of the laws enacted during 2009 address one of the primary causes of foreclosure: bad loans. In particular, states enacted legislation to make it harder to issue bad loans, through stronger protections for borrowers and tougher regulations on the mortgage lending industry. Protecting Borrowers Protecting new borrowers from facing future foreclosure remained a priority for states in 2009. Accordingly, states stepped up efforts to better protect borrowers because delinquencies are a main cause of foreclosure. For example, Indiana now requires that all foreclosure notices must be accompanied by a statement of a borrower’s rights under the federal Real Estate Settlement Procedures Act.47 In addition, states like Indiana, Maryland, North Carolina, and Oregon now explicitly require mortgage loan originators to consider the borrower’s ability to repay the loan.48 Virginia enacted a similar policy, HB 1776, requiring mortgage brokers to use “reasonable diligence and effort” in the mortgage loan process.49 These measures reflect the broader effort among states to ensure that mortgage lenders are doing their part to mitigate the crisis. Increasing Penalties In 2009, many states have increased the penalties on bad lending practices. Connecticut enacted a law in July 2009 elevating the act of mortgage fraud to a Class D felony, punishable by up to $5,000 and five years in prison,50 and Nevada’s AB 486 imposed new penalties for brokers conducting business without a license, including substantially increasing the fine from $500 to $10,000 for each violation.51 Indiana enacted HB 1176 which increases the fine to $10,000 for each violation of certain civil penalties established by the Mortgage Lending and Fraud Prevention Task Force. In other cases, states amended their laws to apply criminal penalties to foreclosure and mortgage- related abuses. For example, Illinois enacted a law in August 2009 amending the state’s criminal code so that certain criminal penalties apply to foreclosure, such as the manipulation of a judicial sale. In early 2009 Georgia amended the official state code so that if a lender fails to provide requested information to a borrower, that lender is subject to a fine for every day until the information is received.52 Furthermore, the law authorizes the state’s attorney general to recover the information for the borrower if the lender does not comply.53 Similarly, Indiana enacted a law in July 2009 expanding the investigative authority of the state’s attorney general to real- estate transactions involving investment properties. As the foreclosure crisis persists, it is important that states continue responding in ways that mitigate the process but that also address the future implications of the crisis. The policies enacted during 2009 show a blend of both approaches, as states acted to address existing issues as well as preempt anticipated problems in the future. Page - 8 – 2009ForeclosureLawsBrief The Federal Response The recent federal response has been designed to complement state efforts to reduce the rate of foreclosure. In July 2009, states applied for a second round of funding from the federal Neighborhood Stabilization Program (NSP 2).54 Congress has also advanced efforts to standardize certain requirements related to foreclosure legislation. The SAFE Mortgage Licensing Act, signed into law in July 2008 as part of the Housing and Economic Recovery Act (HERA), required states to pass legislation requiring the licensure of mortgage loan originators according to national standards and the participation of state agencies on the Nationwide Mortgage Licensing System and Registry (NMLS).55 The legislation established minimum qualifications for mortgage loan originators, including national pre-licensure and continuing education and testing requirements, and criminal background standards. Currently, 33 states and territories participate in NMLS and 46 are scheduled to participate by January 2010.56 NMLS is the legal system of record for licensure for states that maintains a single record and unique ID number for every state-licensed mortgage company, branch and loan originator. Beginning in January 2010, consumers will be able to check, free of charge, the background of current and former mortgage loan originators through NMLS Consumer Access. The comprehensive federal program, Making Home Affordable, launched in February 2009, is designed to help homeowners through several new efforts, including coordinating information and resources across agencies, alerting financial institutions to emerging schemes, strengthening enforcement actions, and educating consumers.57 Within this comprehensive program are several key policies: • Hope for Homeowners, launched in October 2008, contains tools to help mitigate residential foreclosures.58 The Hope for Homeowners (H4H) program encourages greater borrower participation through lower fees, streamlined applications and certifications and initiating servicer incentive payments, and it places a $1 million eligibility ceiling on the net worth of homeowners. The legislation establishes a servicer “safe harbor” from legal liability for mortgage servicers who help homeowners pursue modifications. It also provides a four-year extension of the current $250,000 FDIC coverage limit, allowing FDIC up to eight years to recapitalize the Deposit Insurance Fund, and increases FDIC borrowing authority to $100 billion, with the option to jump to $500 billion through 2010 if necessary. • The Second Lien Program, introduced in April 2009, is intended to help homeowners finance second mortgages through lower payment options. The program would apply many of the same tools now used to help modify a homeowner’s principal mortgage. It also provides for financial incentives to attract participation by servicers, lenders and investors. In addition, the Second Lien Program folds the separate Hope for Homeowners program into the Making Home Affordable program.59 • The Mortgage Reform and Anti-Predatory Lending Act of 200960 addresses concerns with mortgage-backed securities by requiring that lenders retain at least a 5 percent stake in any originated loan that is then bundled and sold to investors, although it would permit federal banking regulators to make exceptions to this requirement. Other provisions include requiring all mortgage originators to be subject to licensing and registration under Page - 9 – 2009ForeclosureLawsBrief state or federal law; prohibiting certain lender compensation structures that encourage steering borrowers into more-costly mortgages with higher interest rates and terms; and increasing the liability burden for fraudulent loans on investors that package securities. The bill also encourages the mortgage market to move toward making 30-year, fixed-rate, fully documented loans the industry standard. There is no Senate companion bill. • The Homeowner Affordability and Stability Plan (HASP)61, launched in February 2009 by the federal government, is a loan modification program aimed at helping borrowers behind on their mortgages stay in their homes. The program is three-pronged: 1. Home Affordable Modification (HAM) is one prong of HASP, which began on March 4, 2009. This program provides the opportunity for eligible homeowners to negotiate loan modifications on first-lien mortgages originating on or before January 1, 2009. 2. Home Affordable Refinance (HAR) is the second prong of the HASP program, designed to provide low-cost refinancing to eligible homeowners who are current on their mortgages but hold less than 20 percent equity in their home. 3. GSEs – Housing Market Stability and Liquidity is the final prong of HASP and involves the federal government’s commitment to help government-sponsored enterprises (GSEs) continue to purchase and securitize mortgages in an effort to stabilize the ailing housing market. The U.S. Department of Treasury will increase the GSE’s retained mortgage portfolio limit by $50 billion, to total $900 billion through the year 2010. Also, the Treasury Department will purchase mortgage-backed securities to help generate liquidity in the national economy. On October 19, 2009, the federal government launched another new initiative in response to foreclosure. The program is designed to improve capital liquidity for state and local housing finance agencies (HFAs).62 Specifically, the initiative would create a New Issue Bond Program to temporarily provide financing for HFAs, and the U.S. Department of Treasury would purchase GSE obligations backed by HFA bonds to help finance mortgages for low- and moderate-income homeowners. The second component of the initiative, the Temporary Credit and Liquidity Program (TCLP), would provide a federal credit and liquidity facilities backstop for HFAs. Together, these federal initiatives are an important part of the context through which states form their own responses to address foreclosure. Conclusion In 2009, foreclosure remains a pressing challenge for states. An estimated 1.8 million borrowers could lose their homes in 2009, up from 1.4 million in 2008.63 The Mortgage Bankers Association predicts that the recession’s impact on the market this year could send foreclosure rates up through 2010, indicating that states will have to deal with this issue for some time to come.64 When the NGA Center released its first Issue Brief on foreclosure in 2007, many states were just beginning to form task forces to determine whether legislative action would be necessary to respond to foreclosure. Now, almost 200 new laws related to foreclosure have been enacted in Page - 10 – 2009ForeclosureLawsBrief over 30 states and several large-scale federal initiatives have been launched simultaneously. The sheer number of foreclosure-related bills enacted during 2009 alone—99 in the states, at this writing—shows continued importance of the housing crisis to gubernatorial and legislative agendas. Page - 11 – 2009ForeclosureLawsBrief Appendix State Foreclosure Laws Enacted in 2009 State Date Signed or Bill Number Summary Strategy Enrolled 1 Arizona 9/4/09 HB 2008 Amends provisions regarding the recovery of the balance on a foreclosed property O after sale. 2 7/10/09 SB 1271 Amends provisions regarding deficiency judgments on single one-family or two- M family trust properties. 3 Arkansas 3/27/09 SB 396 Creates the Arkansas Housing Trust Fund to be used in support of foreclosure M counseling. 4 3/19/09 SB 408 Makes various modifications to the Arkansas Code regarding mortgagor rights in M foreclosure sales. 5 California 2/20/09 AB 7 Grants an additional 90-day timeframe for eligible mortgage-holders after the first M notice of default is filed, under certain circumstances and prohibits the collection of advanced fees, among other provisions. 6 8/5/09 SB 306 Modifies existing law regarding a foreclosure sale. Specifically, a lender must now M accept or decline the request by a borrower for a short sale within 21 days. The legislation will sunset in January 1, 2013. 7 9/9/09 AB 957 Enacts the Buyer's Choice Act which prohibits a mortgagee from requiring that the M buyer of property purchase title insurance or escrow services as a condition during a foreclosure sale and establishes penalties for violations. The legislation will sunset in January 2015. 8 9/10/09 SB 94 Modifies definition of a foreclosure consultant. O 9 Colorado 3/20/09 HB 1109 Amends the definition of a "residence in foreclosure" to include a residence that is M subject to default but against which a foreclosure action may not yet have been commenced. 10 4/3/09 HB 1197 Requires the Division of Housing to gather and report—on a quarterly basis—data NS regarding home foreclosures in each state county. 11 4/21/09 H.B. 1227 Expands the definition of the criminal offense “equity skimming” to include the act M of continuing to collect rent from a tenant after foreclosure and sale of the property to another person. 12 4/22/09 HB 1207 Clarifies and modifies Colorado’s real estate foreclosure laws. The measure M requires a public trustee to review foreclosure documents prior to sending notice to the homeowner. 13 3/20/09 HB 1141 Modifies provisions regarding the Uniform Consumer Credit Code (UCCC). New M provisions include an exemption for providers of debt-management services from the "Uniform Debt-Management Services Act." These providers will be subject to the "Colorado Foreclosure Protection Act" instead. 14 5/2/09 HB 1213 Allows for a grant or loan from monies in the Housing Development Trust Fund to M finance foreclosure prevention activities. 15 6/2/09 HB 1276 Provides assistance and the opportunity for deferment of foreclosure to M homeowners who participate in counseling and enhanced loan modification options. 16 Connecticut 6/25/09 SB 951 Creates a tracking system, MERS, for the registered owners of one- to four-family NS properties and authorizes municipalities to enforce property maintenance. 17 7/9/09 SB 948/HB 6481 Modifies the eligibility for the Emergency Mortgage Assistance Program (EMAP). M 18 7/9/09 SB 949 Elevates the act of mortgage fraud to a Class D felony, punishable by up to $5,000 M/P and five years in prison. 19 Delaware 7/8/09 HB 149 Limits the compensation a mortgage broker can charge for loan modification. M 20 9/10/09 Administrative Establishes the Delaware Foreclosure Mediation Program by which borrowers can M Directive 2009-3 postpone foreclosure to participate in a court mediation process. Page - 12 – 2009ForeclosureLawsBrief 21 10/5/09 HB 232 Requires foreclosure-related modifications to comply with provisions of the M “Mortgage Rescue Fraud Protection Act” in 6 Del. C. Chapter 24B.Establishes the Delaware Foreclosure Mediation Program, Delaware Foreclosure Help, by which borrowers can postpone foreclosure to participate in a court mediation process. 22 Georgia 4/14/09 SB 55 Amends the factors required to be considered in determining fair market value of O real property. 23 5/4/09 SB 141 Amends provisions regarding foreclosures and deficiency judgments in the O Georgia Official Code. 24 5/11/09 HB 261 Provides that an income tax credit temporarily apply for the purchase of an eligible NS single-family residence. 25 Hawaii 4/30/09 SB 862 Includes provisions to ease the ability of the Hawaii housing finance and NS development corporation to collect the value of shared appreciation equity when an affordable housing property foreclosed upon and sold.Provides that an income tax credit temporarily apply to the purchase of an eligible single-family residence. 26 5/20/09 SB 34 Excludes licensed real estate brokers and salespersons from the definition of M distressed property consultants in the Mortgage Foreclosure Rescue Fraud Prevention Act.Includes provisions to ease the ability of the Hawaii housing finance and development corporation to collect the value of shared appreciation equity when an affordable housing property is foreclosed upon and sold. 27 5/26/09 SB 35 Amends definition of "distressed property consultant" to add certified public O accountants to the list of exclusions. 28 Idaho 4/8/09 HB 191 Amends existing law relating to liens and foreclosures to delete the requirement O that a certain notice be on a certain colored paper. 29 Illinois 7/23/09 SB 1053 Amends the Code of Civil Procedure to extend the amount of time for a judgment M from 90 days to 120 days. 30 7/31/09 HB 3863 Requires lenders to provide notification if a foreclosed property is acquired, and M before requiring the current tenants to move. 31 7/31/09 HB4011 Enrolls the state in the Nationwide Mortgage Licensing System and Registry. M/P 32 7/31/09 HB 153 Requires that any Mortgage Foreclosure Article or judgment vesting title by a M consent foreclosure shall state the grantee's or mortgagee's name (and the name of a contact person), street and mailing addresses, and telephone number. 33 8/11/09 HB 2653 Allows homeowners facing foreclosure to qualify for assistance under the state’s M Homelessness Prevention Act. 34 8/13/09 HB 3885 Amends the Criminal Code of 1961 to apply to certain criminal penalties to M circumstances relating to foreclosure, such as the manipulation of a judicial sale. 35 8/18/09 HB 621 Amends the Township Code to provide that a township may provide for certain NS aspects of property maintenance after foreclosure. 36 8/11/09 HB 2005 Empowers the courts to set aside a planned sale if any judicial sale is held without M complying with the requirements established by the state. 37 Indiana 5/7/09 SB 492 Provides that a creditor must notify a debtor of default at least 30 days before an M action is filed and provide the debtor with information about counseling and the state’s foreclosure prevention network, among other provisions. 38 4/30/09 HB 1176 Establishes requirements for borrowers to be provided with a statement of their M/P rights when offered a home loan. The bill also establishes penalties for corrupting the real estate appraisal process, including a fine of $10,000 for each violation of certain civil penalties established by the Mortgage Lending and Fraud Prevention Task Force, among other provisions. Page - 13 – 2009ForeclosureLawsBrief 39 5/7/09 SB 492 Directs the authority to promote, assist, and fund foreclosure counseling and M/NS/P education programs; Authorizes the authority to participate in the making of mortgage loans for low-income, multiple family residential housing. Also provides that immediately after a foreclosure sale, the property must be reported to U.S. HUD and the recorder of the county, among other provisions. 40 Iowa 3/9/09 SF 364 Amends certain provisions related to mortgage foreclosures, including requiring M the courts to allow the postponement of a sheriff’s sale if a homeowner pursues foreclosure counseling or mediation.Directs the authority to promote, assist, and fund foreclosure counseling and education programs. Authorizes the authority to participate in the making of mortgage loans for low-income, multiple-family residential housing. Also provides that immediately after a foreclosure sale, the property must be reported to U.S. HUD and the recorder of the county, among other provisions. 41 Maine 6/9/09 LD 503 Clarifies that businesses acting as foreclosure negotiators are subject to the same M regulations as other debt management services, except that there is a 7-day period to cancel the agreement during a foreclosure negotiation instead of an ongoing right to cancel which applies to all other debt management services. 42 6/11/09 LD 1439 Amends the Consumer Credit Code to conform state mortgage laws to federal laws M and other provisions to increase protections for borrowers. 43 6/18/09 LD 1080 Passed as an emergency measure to create a blue ribbon commission to study ways M to keep tenants in their homes in the event of foreclosure. The commission’s report will be due on December 2, 2009. 44 6/19/09 LD 1418 Instates a mandatory mediation program, and fund to support it, for homeowners M facing foreclosure, among other provisions.Passed as an emergency measure to create a blue ribbon commission to study ways to keep tenants in their homes in the event of foreclosure. The commission’s report is due on December 2, 2009. 45 Maryland 4/14/09 HB 640 Authorizes local government to require notifications for certain filings on a NS foreclosed property. 46 4/14/09 HB 1535 Establishes exceptions to the requirement that the due regard lenders and credit M SB 1036 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. 47 5/19/09 SB 842 Requires a foreclosure notice to be addressed to "all occupants" of the residential M property. 48 5/19/09 HB 798 Alters the definition of “residential property” for purposes of foreclosure M SB 807 procedures and clarifies certain provisions concerning a mortgagor’s or grantor’s right to cure a default before a foreclosure sale. 49 Michigan 5/20/09 HB 4453 Requires that before a foreclosure can be filed, certain procedures must occur, M including notifying the borrower and allowing time for the borrower to seek counseling. 50 5/20/09 HB 4454 Requires a foreclosed party to notify the borrower and establishes guidelines for M the notification and process. 51 5/20/09 HB 4455 Requires a borrower’s loan modification be calculated using the FDIC workout M program. 52 Minnesota 5/5/09 SF1302 Requires the party foreclosing a mortgage must submit the homeowner’s contact M information to an approved foreclosure prevention agency. 53 5/20/09 SF1302 Modifies provisions regarding the eviction of tenants in property subject to M mortgage and mortgage foreclosure notices and information requirements; modifies provisions for sheriff's sale postponement and perpetuating evidence of sale.Requires that the party foreclosing a mortgage must submit the homeowner’s contact information to an approved foreclosure prevention agency. 54 5/20/09 SF 1147 Modifies provisions governing the reduced redemption period for abandoned NS property, empowering the local government to secure the property under certain circumstances and for the imposition of fines for failure to maintain property, among othermortgage foreclosure notices and information requirements. Also modifies provisions. Page - 14 – 2009ForeclosureLawsBrief 55 5/21/09 SF 708 Modifies provisions relating to foreclosure consultants. M 56 Missouri 7/10/09 HB 836 Prohibits eviction against a tenant of a foreclosed property until at least 10 M business days after the date of the notice that the foreclosure sale occurred. 57 Nevada 5/26/09 AB 486 Strengthens regulations related to mortgage lending and foreclosure consulting, M/P and expands the oversight authority of the Commissioner of Mortgage Lending. 58 5/28/09 AB 361 Provides that, under certain circumstances, a unit-owners’ association may, NS without liability for trespass, enter the grounds of a vacant unit or a unit in foreclosure to abate a public nuisance or maintain the exterior of the unit. 59 5/28/09 AB 471 Modifies the state’s foreclosure law to provide borrowers the opportunity to cure M delinquencies and make payments prior to entering foreclosure. 60 5/28/09 SB 128 Specifies certain reporting requirements during a foreclosure proceeding, and NS imposes a timeframe of 30 days for reporting a foreclosure sale to the county. 61 5/29/09 AB 149 Modifies Nevada’s existing foreclosure law and establishes a state Foreclosure M Mediation Program. Foreclosure proceedings will be halted while borrowers pursue mediation. 62 5/29/09 AB 151 Requires mortgage loans to include the license number of the mortgage broker, P among other provisions. 63 5/29/09 A.B. 152 Modifies definitions and establishes requirements for “loan modification M consultants”, such as licensing and certain fees for services relating to foreclosure. 64 6/9/09 AB 140 Establishes the rights and responsibilities of property owners and tenants during a NS foreclosure sale, including property maintenance. Imposes a $1000 fine per day for failure to maintain the property. 65 New Jersey 7/2/09 AB 3821 Modifies the state’s Mortgage Stabilization and Relief Act. Prohibits lenders from M selling the names of delinquent borrowers. Establishes a 6 month mortgage foreclosure forbearance period for borrowers who seek mediation and counseling as a means to avoid foreclosure upon written request from the borrower, among other provisions.Modifies definitions and establishes requirements for “loan modification consultants,” such as licensing and certain fees for services relating to foreclosure. 66 8/6/09 S.B. 250 This bill supplements the “Fair Foreclosure Act,” by applying a statute of M limitations to residential mortgage foreclosure actions. Establishes the rights and ies of property owners and tenants during a foreclosure sale, including property maintenance. Imposes a $1,000 fine per day for failure to maintain the property. 67 7/2/09 A.B. 3821 Regulates the mortgage forbearance period and repeals the provision of the M “Mortgage Stabilization and Relief Act” prohibiting a lender from selling the names of delinquent borrowers to other lenders or creditors. 68 New Mexico 4/7/09 HB 862 Establishes a provision to waive prepayment penalties on home loans for both NS residences and mobile homes. 69 North Carolina 4/9/09 HB 1222 Requires lenders to consider the borrower’s ability to make payments on home M/P loans. 70 4/29/09 HB 930 Enacts the Consumer Economic Protection Act of 2009, providing the opportunity M SB 974 to resolve loan delinquencies prior to foreclosure. 71 8/7/09 H.B. 1057 Abolishes deficiency judgments in certain cases where the mortgage is secured by M SB 819 primary residence. 72 North Dakota 4/8/09 SB 2233 Relates to recording of change of name or identity of mortgagee and the P assignment, satisfaction, release, or authorization of foreclosure by a mortgagee; and provides for retroactive application. 73 4/30/09 SB 2232 Sets a limit of 60 days on the time a home can stay vacant before a sheriff’s sale is NS arranged. 74 Oregon 6/4/09 SB 239 Creates certain requirements for the mailing of foreclosure notices. M Page - 15 – 2009ForeclosureLawsBrief 75 6/24/09 SB 952 Requires purchaser of foreclosed property to give additional notice to tenants M living on property when purchaser intends to take possession of property and modifies information to be included in notice. Allows tenant who receives actual notice of foreclosure to apply security deposit or prepaid rent to pay rent obligation.Relates to recording of change of name or identity of mortgagee and the assignment, satisfaction, release, or authorization of foreclosure by a mortgagee. Also provides for retroactive application. 76 6/26/09 HB 2188 Prohibits lenders from offering a home loan without considering a borrower’s P ability to make the loan payments. 77 7/30/09 SB 628 Changes contents of notice of default that lender must deliver to grantor before sale M to foreclose residential trust deed. 78 8/4/09 HB 3004 Provides that sale of foreclosed property precludes further action against O mortgagor, grantor or other specified obligor for deficiencies in amount secured by mortgage or trust deed. 79 Puerto Rico HB 1324 Amends the Internal Revenue Code of Puerto Rico of 1994; waives the penalty M imposed by existing law on distributions to Individual Retirement Accounts that are used by the taxpayer to prevent the imminent foreclosure of the mortgage on a principal residence due to circumstances beyond their control, subject to documentation of such use. 80 1/2/09 PC 0031 Amends current law, “Law of Mortgage Institutions”, to limit for attorneys’ costs, P expenses, and fees, which exceed 10 percent of the principal amount of the mortgage in question. Amounts exceeding 10 percent will be tacked on to a mortgage bond upon execution of a mortgage. The bill also establishes penalties for noncompliance with these provisions. 81 Pennsylvania 6/29/09 SB 170 Specifies that a mortgage broker cannot be the exclusive recipient of, nor designate M the recipient of, foreclosure notices.Provides that sale of foreclosed property precludes further action against mortgagor, grantor or other specified obligor, for deficiencies in amount secured by mortgage or trust deed. 82 South Carolina 5/7/09 HB 3721 Amends current law relating to the application of the Internal Revenue Code to M state tax laws to provideof Puerto Rico of 1994. Waives the penalty imposed by existing law on distributions to Individual Retirement Accounts that a taxpayer who follows §3094 of the federal Housing Economic Recovery Act of 2008, for South Carolina purposes must not be penalized. 83 6/3/09 SB 673 Enacts the South Carolina Mortgage Lending Act. Provisions include new M/P licensing requirements for mortgage lenders and loan originators and provides for South Carolina’s participation in the National Mortgage Registry. 84 South Dakota 2/19/09 HB 1097 Provides for certain filing fees and surcharges in certain civil cases and to provide M exemptions in certain cases, including foreclosures.Amends current law relating to the application of the Internal Revenue Code to state tax laws to provide that a taxpayer who follows §3094 of the federal Housing Economic Recovery Act of 2008, for South Carolina purposes, must not be penalized. 85 Tennessee 5/13/09 H.B. 2218 Makes it an unfair or deceptive act under the Consumer Protection Act to engage M in foreclosure-related rescue consultant services for a fee under certain circumstances. 86 Texas 6/19/09 H.B. 655 Amends the Property Code to establish that the purchase price in a sale of NS foreclosed property held by a trustee or substitute trustee of the property is due and payable without delay. 87 Utah 3/24/09 HB 299 Defines “unlawful detainer”; provides a previous owner, mortgagor, or trustor is O guilty of an unlawful detainer if the person remains in possession of property after a forced sale; and allows for an expedited hearing on the issue. 88 Virginia 3/27/09 HB 2261 Prohibits rescue servicers from charging a fee before prior to performing services. M 89 3/27/09 HB 1776 Requires mortgage brokers to use reasonable diligence and effort in the mortgage P loan process.Defines “unlawful detainer.” Provides that a previous owner, mortgagor, or trustor is guilty of an unlawful detainer if the person remains in possession of property after a forced sale. Allows for an expedited hearing on the issue. Page - 16 – 2009ForeclosureLawsBrief 90 3/27/09 SB 1546 Provides that failure to comply with any requirements for notice of default that M may be contained in such deed of trust shall, upon petition, render a sale of the property voidable by the court. Amends Vermont law to incorporate the requirements of the federal SAFE Act. 91 3/27/09 HB 1887 Authorizes the cancellation of a policy insuring an owner-occupied dwelling on O grounds that the property secured by the policy has been sold pursuant to foreclosure of a deed of trust encumbering the property. 92 3/27/09 HB 2261 Prohibits foreclosure servicers for collecting fees prior to performing certain M SB 1169 transactions. 93 4/8/09 HB 2150 Permits localities in Planning District 8 to adopt an ordinance to require that a NS notice be given to the chief administrative officer when residential property becomes subject to a sale under a deed of trust. 94 Washington 4/17/09 HB 1826 Provides that surplus proceeds from a mortgage foreclosure sale must be applied to O liens or claims against the property before being paid to the mortgage debt. 95 4/30/09 SB 5810 Requires that lenders must have an in-person meeting with borrowers and the M borrower’s ability to pay the debt must be assessed before a foreclosure can be filed. Prohibits foreclosure servicers from collecting fees prior to performing certain transactions. 96 3/25/09 SB 5221 Exempts licensed real estate brokers and salespersons from the definition of O “distressed home consultant.” 97 5/7/09 SB 6033 Creates the Prevent or Reduce Owner-Occupied foreclosure program to assist M homeowners in preventing foreclosure through loan workouts and modifications. The legislation directs certain agencies to appoint representatives and directs the administration and financing mechanisms of the program. 98 West Virginia 4/21/09 HB 3082 Establishes procedure and certain requirements for foreclosure reporting and data NS collection. 99 5/8/09 SB 425 Requires full disclosure of any refinancing process that results in an increased P annual percentage rate for the borrower.Exempts licensed real estate brokers and salespersons from the definition of “distressed home consultant.” Legend: Categories of Legislation M – Mitigation NS – Neighborhood Stabilization O – Other P – Preventing Bad Loans Page - 17 – 2009ForeclosureLawsBrief Notes 1 Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Maine, Maryland, Michigan, Minnesota, Missouri, Nevada, New Jersey, New Mexico, North Carolina, North Dakota, Oregon, Puerto Rico, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, and West Virginia have all passed foreclosure laws in 2009. 2 CO HB 1276, http://www.leg.state.co.us/Clics/CLICS2009A/csl.nsf/fsbillcont3/B09E49B726A9CD7587257551007F2FDE?Open&file=1276_ enr.pdf; DE Admin Directive 2009-3, http://courts.delaware.gov/Courts/Superior%20Court/pdf/?Administrative_Directive_2009- 3.pdf; IA SF 364, http://coolice.legis.state.ia.us/Cool- ICE/default.asp?Category=billinfo&Service=Billbook&menu=false&ga=83&hbill=SF364; MI HB 4454, http://www.legislature.mi.gov/documents/2009-2010/publicact/pdf/2009-PA-0030.pdf; MN SF 1302, https://www.revisor.leg.state.mn.us/bin/bldbill.php?bill=S1302.3.html&session=ls86. 3 CA AB 7, http://info.sen.ca.gov/pub/09-10/bill/asm/ab_0001-0050/abx2_7_bill_20090220_chaptered.pdf; CO HB 1276, http://www.leg.state.co.us/Clics/CLICS2009A/csl.nsf/fsbillcont3/B09E49B726A9CD7587257551007F2FDE?Open&file=1276_ enr.pdf; MI HB 4453, http://www.legislature.mi.gov/documents/2009-2010/publicact/pdf/2009-PA-0029.pdf; MI HB 4454, http://www.legislature.mi.gov/documents/2009-2010/publicact/pdf/2009-PA-0030.pdf; MI HB 4455, http://www.legislature.mi.gov/documents/2009-2010/publicact/pdf/2009-PA-0031.pdf; NV AB 149, http://leg.state.nv.us/75th2009/Bills/AB/AB149_EN.pdf; NJ AB 3821, http://www.njleg.state.nj.us/2008/Bills/A4000/3821_R1.PDF 4 CO HB 1227, http://www.leg.state.co.us/Clics/CLICS2009A/csl.nsf/fsbillcont3/1D45323670E0269C87257547000040A4?Open&file=1227_en r.pdf ; IL HB 3863, http://www.ilga.gov/legislation/publicacts/fulltext.asp?Name=096-0111; MD S.B. 842, http://mlis.state.md.us/2009rs/billfile/sb0842.htm ; ME LD 1418, http://www.mainelegislature.org/legis/bills/bills_124th/billtexts/HP099401.asp; OR S.B. 952, http://www.leg.state.or.us/09reg/measures/sb0900.dir/sb0952.en.html 5 CO HB 1197, http://www.state.co.us/gov_dir/leg_dir/olls/sl2009a/sl_101.htm; CT SB 951, http://www.cga.ct.gov/2009/ACT/PA/2009PA-00144-R00SB-00951-PA.htm; IN SB 492, http://www.in.gov/legislative/bills/2009/SE/SE0492.1.html; MA Chapter 206, Act 2007, http://www.mass.gov/legis/laws/seslaw07/sl070206.htm. 6 Peter Goodman, “U.S. Unemployment Rate Hits 10.2%, Highest in 26 Years,” New York Times, November 6, 2009, http://www.nytimes.com/2009/11/07/business/economy/07jobs.html?_r=2&hp 7 Peter Coy, “Foreclosure Goes Upscale,” Business Week, June 4, 2009, http://www.businessweek.com/magazine/content/09_24/b4135026913979.htm?chan=top+news_top+news+index+- +temp_top+story 8 Mark Zandi, “Homeownership Vesting Plan,” Moody’s Economy.com, December 22, 2008, 11. 9 Stephanie Casey Pierce and Khen Mei Tan, State Strategies to Address Foreclosure (Washington, D.C.: NGA Center for Best Practices, September 19, 2007), 1. http://www.nga.org/Files/pdf/0709FORECLOSURES.PDF 10 Zandi, 12. 11 Renae Merle, “Unemployment Spike Compounds Foreclosure Crisis,” Washington Post, August 18, 2009, http://www.washingtonpost.com/wp-dyn/content/article/2009/08/17/AR2009081703035.html. 12 Mortgage Bankers Association, “Delinquencies Continue to Climb, Foreclosures Flat in Latest MBA National Delinquency Survey,” Press Release, August 20, 2009, http://www.mortgagebankers.org/NewsandMedia/PressCenter/70050.htm. 13 Renae Merle, “Foreclosures Continued to Rise in 3rd Quarter as Banks Worked on Backlog,” Washington Post (October 16, 2009), http://www.washingtonpost.com/wp-dyn/content/article/2009/10/15/AR2009101502123.html?hpid%3Dsec- business&sub=AR. 14 CO HB 1276, http://www.leg.state.co.us/Clics/CLICS2009A/csl.nsf/fsbillcont3/B09E49B726A9CD7587257551007F2FDE?Open&file=1276_ enr.pdf; DE Admin Directive 2009-3, http://courts.delaware.gov/Courts/Superior%20Court/pdf/?Administrative_Directive_2009- 3.pdf; IA SF 364, http://coolice.legis.state.ia.us/Cool- ICE/default.asp?Category=billinfo&Service=Billbook&menu=false&ga=83&hbill=SF364; MI HB 4454, http://www.legislature.mi.gov/documents/2009-2010/publicact/pdf/2009-PA-0030.pdf; MN SF 1302, https://www.revisor.leg.state.mn.us/bin/bldbill.php?bill=S1302.3.html&session=ls86, WA http://apps.leg.wa.gov/documents/billdocs/2009-10/Pdf/Bills/Session%20Law%202009/5810.SL.pdf . 15 Delaware Administrative Directive 2009-3, http://courts.delaware.gov/Courts/Superior%20Court/pdf/?Administrative_Directive_2009-3.pdf. 16 IN S.B. 492, http://www.in.gov/legislative/bills/2009/SE/SE0492.1.html; MI HB 4454, http://www.legislature.mi.gov/documents/2009-2010/publicact/pdf/2009-PA-0030.pdf. Page - 18 – 2009ForeclosureLawsBrief 17 CT SB 948, http://www.cga.ct.gov/2009/ACT/PA/2009PA-00209-R00SB-00948-PA.htm; ME HP 994/LD 1418, http://www.mainelegislature.org/legis/bills/bills_124th/billtexts/HP099401.asp 18 CT SB 948, http://www.cga.ct.gov/2009/ACT/PA/2009PA-00209-R00SB-00948-PA.htm, Sec. 35. Section 49-31 19 ME LD 1418, http://www.mainelegislature.org/legis/bills/bills_124th/billtexts/HP099401.asp 20 CA AB 7, http://info.sen.ca.gov/pub/09-10/bill/asm/ab_0001-0050/abx2_7_bill_20090220_chaptered.pdf; CO HB 1276, http://www.leg.state.co.us/Clics/CLICS2009A/csl.nsf/fsbillcont3/B09E49B726A9CD7587257551007F2FDE?Open&file=1276_ enr.pdf; MI HB 4453, http://www.legislature.mi.gov/documents/2009-2010/publicact/pdf/2009-PA-0029.pdf; MI HB 4454, http://www.legislature.mi.gov/documents/2009-2010/publicact/pdf/2009-PA-0030.pdf; MI HB 4455, http://www.legislature.mi.gov/documents/2009-2010/publicact/pdf/2009-PA-0031.pdf; NV AB 149, http://leg.state.nv.us/75th2009/Bills/AB/AB149_EN.pdf; NJ AB 3821, http://www.njleg.state.nj.us/2008/Bills/A4000/3821_R1.PDF 21 NC SB 974, http://www.ncleg.net/Sessions/2009/Bills/Senate/PDF/S974v0.pdf 22 Delaware Administrative Directive 2009-3, http://courts.delaware.gov/Courts/Superior%20Court/pdf/?Administrative_Directive_2009-3.pdf 23 IA SF 364, http://coolice.legis.state.ia.us/Cool- ICE/default.asp?Category=billinfo&Service=Billbook&menu=false&ga=83&hbill=SF364 24 NV AB 149, http://leg.state.nv.us/75th2009/Bills/AB/AB149_EN.pdf 25 NJ AB 3821, http://www.njleg.state.nj.us/2008/Bills/A4000/3821_R1.PDF 26 WA SB 6033, http://apps.leg.wa.gov/documents/billdocs/2009-10/Pdf/Bills/Session%20Law%202009/6033.SL.pdf 27 MD HB 798/SB 807, http://mlis.state.md.us/2009rs/bills/sb/sb0807t.pdf; NV AB 471, http://leg.state.nv.us/75th2009/Bills/AB/AB471_EN.pdf 28 NV AB 149, http://leg.state.nv.us/75th2009/Bills/AB/AB149_EN.pdf 29 HousingPolicy.org, “Help Residents Succeed: Prevent Foreclosures and Help Renters and Owners,” http://www.housingpolicy.org/toolbox/strategy/policies/foreclosure_prevention.html?tierid=206. 30 CO HB 1227, http://www.leg.state.co.us/Clics/CLICS2009A/csl.nsf/fsbillcont3/1D45323670E0269C87257547000040A4?Open&file=1227_en r.pdf 31 DE SB 141, http://legis.delaware.gov/LIS/lis145.nsf/vwLegislation/SB+141/$file/legis.html?open 32 IL HB 3863, http://www.ilga.gov/legislation/publicacts/fulltext.asp?Name=096-0111 33 ME LD 1418, http://www.mainelegislature.org/legis/bills/bills_124th/billtexts/HP099401.asp; LD 1080, http://www.mainelegislature.org/legis/bills/bills_124th/billtexts/HP074702.asp 34 AR SB 396, http://www.arkleg.state.ar.us/assembly/2009/R/Bills/SB396.pdf 35 CO HB 1213, http://www.state.co.us/gov_dir/leg_dir/olls/sl2009a/sl_217.htm 36 IN SB 492, http://www.in.gov/legislative/bills/2009/SE/SE0492.1.html 37 New Jersey Office of the Governor, “New Jersey Enters Into Agreement With Countrywide Financial To Resolve Subprime Mortgage Complaints,” Press Release, April 2, 2009, http://www.state.nj.us/governor/news/news/2009/approved/20090402c.html. 38 WA SB 6033, http://apps.leg.wa.gov/documents/billdocs/2009-10/Pdf/Bills/Session%20Law%202009/6033.SL.pdf 39 National Association of Realtors, “Strong Gain in Existing-Home Sales Maintains Uptrend,” Press Release, August 21, 2009, http://www.realtor.org/press_room/news_releases/2009/08/strong_uptrend. 40 ND SB 2232, http://www.legis.nd.gov/assembly/61-2009/bill-text/JBFS0500.pdf 41 IL 621, http://www.ilga.gov/legislation/publicacts/fulltext.asp?Name=096-0564 42 MN SF 1147, https://www.revisor.mn.gov/bin/bldbill.php?bill=S1147.2.html&session=ls86 43 NV AB 361, http://leg.state.nv.us/75th2009/Bills/AB/AB361_EN.pdf 44 CT SB 951, http://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=951&which_year=2009 45 CO HB 1197, http://www.state.co.us/gov_dir/leg_dir/olls/sl2009a/sl_101.htm; CT SB 951, http://www.cga.ct.gov/2009/ACT/PA/2009PA-00144-R00SB-00951-PA.htm; IN SB 492, http://www.in.gov/legislative/bills/2009/SE/SE0492.1.html; MA Chapter 206, Act 2007, http://www.mass.gov/legis/laws/seslaw07/sl070206.htm. 46 IN SB 492, http://www.in.gov/legislative/bills/2009/SE/SE0492.1.html 47 IN HB 1176, http://www.in.gov/legislative/bills/2009/HE/HE1176.1.html 48 IN HB 1176, http://www.in.gov/legislative/bills/2009/HE/HE1176.1.html; MD HB 1535, http://mlis.state.md.us/2009rs/bills/hb/hb1535t.pdf; NC HB 1222, http://www.ncleg.net/Sessions/2009/Bills/House/PDF/H1222v5.pdf; OR HB 2188, http://www.leg.state.or.us/09reg/measures/hb2100.dir/hb2188.intro.html 49 VA H 1776, http://leg1.state.va.us/cgi-bin/legp504.exe?091+ful+CHAP0189 50 CT 949, http://www.cga.ct.gov/2009/BA/2009SB-00949-R01-BA.htm 51 NV AB 486, http://leg.state.nv.us/75th2009/Bills/AB/AB486_EN.pdf 52 GA SB 141, http://www.legis.state.ga.us/legis/2009_10/pdf/hb141.pdf Page - 19 – 2009ForeclosureLawsBrief 53 GA SB 141, http://www.legis.state.ga.us/legis/2009_10/pdf/hb141.pdf 54 U.S. Department of Housing and Urban Development, “Secretary Donovan Announces $2 Billion in Recovery Act Funds to Stabilize Neighborhoods Hard-Hit by Foreclosure,” News Release, May 4, 2009, http://www.hud.gov/news/release.cfm?content=pr09-047.cfm 55 U.S. Department of Housing and Urban Development,”SAFE Mortgage Licensing Act, About the Act,” http://www.hud.gov/offices/hsg/ramh/safe/smlicact.cfm 56 Nationwide Mortgage Licensing System and Registry, NMLS Resource Center, http://mortgage.nationwidelicensingsystem.org/Pages/default.aspx 57 U.S. Department of Treasury, Making Home Affordable: Summary of Guidelines (Washington, D.C.: U.S. Department of Treasury, March 4, 2009, http://www.treas.gov/press/releases/reports/guidelines_summary.pdf 58 S. 896, http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_public_laws&docid=f:publ022.111.pdf 59 National Governors Association, State Budget Update (Washington, D.C.: National Governors Association, May 2009), http://www.nga.org/Files/pdf/0905NGAECONREVIEW.PDF 60 H.R. 1728, http://thomas.loc.gov/cgi-bin/bdquery/z?d111:h.r.1728: 61 U.S. Department of Treasury,“Homeowner Affordability and Stability Plan” Press Release, February 18, 2009, http://www.treas.gov/press/releases/tg33.htm. 62 National Governors Association, “Administration Announces Housing Finance Agency Program,” This Just In (Washington, D.C.: National Governors Association, October 20, 2009), http://www.nga.org/portal/site/nga/menuitem.16d328112afd40b422d81fa6501010a0/?vgnextoid=b0c7d16d40d12010VgnVCM1 000001a01010aRCRD. 63 Merle, “Unemployment Spike Compounds Foreclosure Crisis,” The Washington Post, August 18, 2009, http://www.washingtonpost.com/wp-dyn/content/article/2009/08/17/AR2009081703035.html 64 Mortgage Bankers Association.
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