Introduced in the Senate on February 29, 2012, to clarify that mortgage loan contracts that contain “non-recourse loan provisions” cannot be made into a recourse loan by a “post closing solvency covenant" or other device. Practically all residential mortgages are “non-recourse” loans, meaning that although the lender can take back the home, he can’t go after (“have recourse to”) a delinquent borrower’s other property or income
The vote was 33 in favor, 5 opposed and 0 not voting
(Senate Roll Call 117 at Senate Journal 0)
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