Bill Text: MN SF2445 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Foreclosure curative act clarification and small servicer definition modification
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2014-04-24 - HF substituted on General Orders HF2213 [SF2445 Detail]
Download: Minnesota-2013-SF2445-Introduced.html
1.2relating to mortgage foreclosures; amending the definition of a small servicer;
1.3clarifying the Foreclosure Curative Act;amending Minnesota Statutes 2013
1.4Supplement, sections 582.043, subdivision 1; 582.27, subdivision 1.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2013 Supplement, section 582.043, subdivision 1,
1.7is amended to read:
1.8 Subdivision 1. Definitions. (a) For purposes of this section, the terms defined in this
1.9subdivision have the meanings given them.
1.10(b) "Foreclosure sale date" means either:
1.11(1) the date of the foreclosure sale contained in the notice that has been either served
1.12or published as required under section580.03 , or
550.18 and
550.19 ; or
1.13(2) the date to which the foreclosure sale is postponed by the borrower under section
1.14580.07, subdivision 2
,
1.15whichever is later.
1.16(c) "Loss mitigation option" means a temporary or permanent loan modification, a
1.17forbearance agreement, a repayment agreement, a principal reduction, capitalizing arrears,
1.18or any other relief intended to allow a mortgagor to retain ownership of the property.
1.19(d) "Mortgagor" means a person who is liable on the promissory note secured by the
1.20mortgage, except that the mortgagor does not include a person who has surrendered the
1.21mortgaged property, as evidenced by either a letter or other written notice confirming the
1.22surrender or by delivery of the keys to the property to the servicer or authorized agent.
1.23(e) "Servicer" means a residential mortgage servicer as defined in section58.02 ,
1.24subdivision 20.
2.1(f) "Small servicer" means a servicer that is either:
2.2(1) a small servicer, as defined in Code of Federal Regulations, title 12, section
2.31026.41, paragraph (e), clause (4);or
2.4(2) a Housing Finance Agency, as defined in Code of Federal Regulations, title
2.524, section 266.5.; or
2.6Until August 1, 2014, "small servicer" also means (3) a servicer that has conducted
2.7125 or fewer foreclosure sales during the preceding 12 months.
2.8EFFECTIVE DATE.This section is effective the day following final enactment.
2.9 Sec. 2. Minnesota Statutes 2013 Supplement, section 582.27, subdivision 1, is
2.10amended to read:
2.11 Subdivision 1. Section582.25 . (a) Upon expiration of the periods specified in this
2.12section, the provisions of section582.25 apply to a mortgage foreclosure sale subject
2.13to this section:
2.14(1) as to all of the provisions of section582.25 , except clauses (2) and (23), one year
2.15after the last day of the redemption period of the mortgagor, the mortgagor's personal
2.16representatives or assigns;
2.17(2) as to clause (2), ten years after the date of the foreclosure sale; and
2.18(3) as to clause (23), the expiration of the mortgagor's applicable redemption period
2.19as specified in section580.23 or
582.032 .
2.20(b) The time limits provided under paragraph (a) apply notwithstanding any
2.21common law.
2.22EFFECTIVE DATE.This section is effective the day following final enactment.
1.3clarifying the Foreclosure Curative Act;amending Minnesota Statutes 2013
1.4Supplement, sections 582.043, subdivision 1; 582.27, subdivision 1.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2013 Supplement, section 582.043, subdivision 1,
1.7is amended to read:
1.8 Subdivision 1. Definitions. (a) For purposes of this section, the terms defined in this
1.9subdivision have the meanings given them.
1.10(b) "Foreclosure sale date" means either:
1.11(1) the date of the foreclosure sale contained in the notice that has been either served
1.12or published as required under section
1.13(2) the date to which the foreclosure sale is postponed by the borrower under section
1.15whichever is later.
1.16(c) "Loss mitigation option" means a temporary or permanent loan modification, a
1.17forbearance agreement, a repayment agreement, a principal reduction, capitalizing arrears,
1.18or any other relief intended to allow a mortgagor to retain ownership of the property.
1.19(d) "Mortgagor" means a person who is liable on the promissory note secured by the
1.20mortgage, except that the mortgagor does not include a person who has surrendered the
1.21mortgaged property, as evidenced by either a letter or other written notice confirming the
1.22surrender or by delivery of the keys to the property to the servicer or authorized agent.
1.23(e) "Servicer" means a residential mortgage servicer as defined in section
1.24subdivision 20.
2.1(f) "Small servicer" means a servicer that is either:
2.2(1) a small servicer, as defined in Code of Federal Regulations, title 12, section
2.31026.41, paragraph (e), clause (4);
2.4(2) a Housing Finance Agency, as defined in Code of Federal Regulations, title
2.524, section 266.5
2.6
2.7125 or fewer foreclosure sales during the preceding 12 months.
2.8EFFECTIVE DATE.This section is effective the day following final enactment.
2.9 Sec. 2. Minnesota Statutes 2013 Supplement, section 582.27, subdivision 1, is
2.10amended to read:
2.11 Subdivision 1. Section
2.12section, the provisions of section
2.13to this section:
2.14(1) as to all of the provisions of section
2.15after the last day of the redemption period of the mortgagor, the mortgagor's personal
2.16representatives or assigns;
2.17(2) as to clause (2), ten years after the date of the foreclosure sale; and
2.18(3) as to clause (23), the expiration of the mortgagor's applicable redemption period
2.19as specified in section
2.20(b) The time limits provided under paragraph (a) apply notwithstanding any
2.21common law.
2.22EFFECTIVE DATE.This section is effective the day following final enactment.
