Bill Text: MN HF2819 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Mortgage loan modification criteria transparency required.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Introduced - Dead) 2012-03-19 - Author added Nelson [HF2819 Detail]
Download: Minnesota-2011-HF2819-Introduced.html
1.2relating to real estate; requiring transparency in mortgage loan modification
1.3criteria;amending Minnesota Statutes 2011 Supplement, section 580.041,
1.4subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 47.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [47.221] TRANSPARENCY IN LOAN MODIFICATION CRITERIA.
1.7A state-chartered bank shall provide to all of its residential mortgage loan customers
1.8in writing, the criteria the bank uses in determining eligibility for a loan modification. The
1.9bank shall provide the criteria at least once per year, within 30 days after each change in
1.10the criteria, and upon request. If the bank denies an application for a loan modification,
1.11the bank shall notify the customer in writing within five days of the decision and provide
1.12an explanation of how the customer failed to meet the criteria. The bank must provide
1.13the customer with accurate information about the lender.
1.14 Sec. 2. Minnesota Statutes 2011 Supplement, section 580.041, subdivision 2, is
1.15amended to read:
1.16 Subd. 2. Content of foreclosure advice notice. The foreclosure advice notice
1.17required by this section must appear substantially as follows:
2.1AS OF [insert date], this lender says that you owe $[insert dollar amount] to bring
2.2your mortgage up to date (or "reinstate" your mortgage). You must pay this amount,
2.3plus interest and other costs, to keep your house from going through a sheriff's sale.
2.4The sheriff's sale is scheduled for [insert date] at [insert time] at [insert place].
2.5Mortgage foreclosure is a complex process. People may contact you with advice and
2.6offers to help "save" your home.
2.7Remember: It is important that you learn as much as you can about foreclosure and
2.8your situation. Find out about all your options before you make any agreements with
2.9anyone about the foreclosure of your home.
2.10Getting Help
2.11As soon as possible, you should contact your lender at the above number to talk
2.12about things you might be able to do to prevent foreclosure. You may be eligible for
2.13a loan modification from your lender. You have the right to ask your lender for a
2.14statement in writing describing how the lender decides whether to agree to modify a
2.15loan. You should also consider contacting the foreclosure prevention counselor in
2.16your area. A foreclosure prevention counselor can answer your questions, offer free
2.17advice, and help you create a plan which makes sense for your situation.
2.18Contact the Minnesota Home Ownership Center at 651-659-9336 or 866-462-6466
2.19or www.hocmn.org or contact the United States Department of Housing and Urban
2.20Development at 1-800-569-4287 or www.hud.gov to get the phone number and
2.21location of the nearest certified counseling organization. Call today. The longer you
2.22wait, the fewer options you may have for a desirable result."
1.3criteria;amending Minnesota Statutes 2011 Supplement, section 580.041,
1.4subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 47.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [47.221] TRANSPARENCY IN LOAN MODIFICATION CRITERIA.
1.7A state-chartered bank shall provide to all of its residential mortgage loan customers
1.8in writing, the criteria the bank uses in determining eligibility for a loan modification. The
1.9bank shall provide the criteria at least once per year, within 30 days after each change in
1.10the criteria, and upon request. If the bank denies an application for a loan modification,
1.11the bank shall notify the customer in writing within five days of the decision and provide
1.12an explanation of how the customer failed to meet the criteria. The bank must provide
1.13the customer with accurate information about the lender.
1.14 Sec. 2. Minnesota Statutes 2011 Supplement, section 580.041, subdivision 2, is
1.15amended to read:
1.16 Subd. 2. Content of foreclosure advice notice. The foreclosure advice notice
1.17required by this section must appear substantially as follows:
| 1.19 |
The attorney preparing this foreclosure is: ..... |
||
| 1.20 |
(Attorney name, address, phone) |
||
| 1.21 |
It is being prepared for: |
||
| 1.22 |
.....
|
||
| 1.23 |
(Lender name, loss mitigation phone number) |
||
2.2your mortgage up to date (or "reinstate" your mortgage). You must pay this amount,
2.3plus interest and other costs, to keep your house from going through a sheriff's sale.
2.4The sheriff's sale is scheduled for [insert date] at [insert time] at [insert place].
2.5Mortgage foreclosure is a complex process. People may contact you with advice and
2.6offers to help "save" your home.
2.7Remember: It is important that you learn as much as you can about foreclosure and
2.8your situation. Find out about all your options before you make any agreements with
2.9anyone about the foreclosure of your home.
2.10Getting Help
2.11As soon as possible, you should contact your lender at the above number to talk
2.12about things you might be able to do to prevent foreclosure. You may be eligible for
2.13a loan modification from your lender. You have the right to ask your lender for a
2.14statement in writing describing how the lender decides whether to agree to modify a
2.15loan. You should also consider contacting the foreclosure prevention counselor in
2.16your area. A foreclosure prevention counselor can answer your questions, offer free
2.17advice, and help you create a plan which makes sense for your situation.
2.18Contact the Minnesota Home Ownership Center at 651-659-9336 or 866-462-6466
2.19or www.hocmn.org or contact the United States Department of Housing and Urban
2.20Development at 1-800-569-4287 or www.hud.gov to get the phone number and
2.21location of the nearest certified counseling organization. Call today. The longer you
2.22wait, the fewer options you may have for a desirable result."
