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2009 House Bill 4453: Impose new regulations on foreclosures

Public Act 29 of 2009

Received in the House on February 23, 2009
Introduced by Rep. Shanelle Jackson (D) on February 24, 2009
To mandate that before initiating “foreclosure by advertisement” proceedings, a mortgage lender or servicer must send a notice to the borrower, and if the borrower chooses to try to renegotiate the loan, or is unsuccessful in doing so but meets the criteria for a renegotiation under an FDIC "workout" program, prohibit the lender for proceeding with the foreclosure by advertisement for 90 days. If a borrower were eligible for a for an FDIC "workout," he or she could force a lender unwilling to go that route to undertake judicial foreclosure proceedings, which are more costly and time consuming than foreclosure-by-advertisement.   Official Text and Analysis.
Referred to the House Banking and Financial Services Committee on February 24, 2009
Reported in the House on March 5, 2009
With the recommendation that the substitute (H-1) be adopted and that the bill then pass.
Substitute offered in the House on March 11, 2009
To replace the previous version of the bill with one that revises various details, but does not change its substance. This version was subsequently superseded by another substitute with other detail changes.
The substitute failed by voice vote in the House on March 11, 2009
Substitute offered by Rep. Andy Coulouris (D) on March 11, 2009
To replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described.
The substitute passed by voice vote in the House on March 11, 2009
Amendment offered by Rep. Darwin Booher (R) on March 11, 2009
To eliminate the provision delaying the foreclosure by advertisement if the borrower meets the criteria for an FDIC "workout".
The amendment failed by voice vote in the House on March 11, 2009
Received in the Senate on March 12, 2009
Referred to the Senate Judiciary Committee on March 12, 2009
Reported in the Senate on March 26, 2009
With the recommendation that the substitute (S-1) be adopted and that the bill then pass.
Substitute offered in the Senate on April 2, 2009
To replace the previous version of the bill with one that empower a borrower who is eligible for a for an FDIC "workout" to force a lender unwilling to go that route to undertake judicial foreclosure proceedings.
The substitute passed by voice vote in the Senate on April 2, 2009
Amendment offered by Sen. Liz Brater (D) on April 2, 2009
To prohibit an original lender of a mortgage loan who has sold the loan but still services it, from foreclosing on the loan if the borrower is delinquent under the terms of the loan, unless the lender (now servicer) can show the documents by which the long was assigned to the current holder.
The amendment failed 16 to 21 in the Senate on April 2, 2009.
    See Who Voted "Yes" and Who Voted "No".
Amendment offered by Sen. Dennis Olshove (D) on April 2, 2009
To restore the House-passed provision that would empower a borrower who is eligible for a for an FDIC "workout" to force a lender unwilling to go that route into undertaking judicial foreclosure proceedings.
The amendment failed 17 to 20 in the Senate on April 2, 2009.
    See Who Voted "Yes" and Who Voted "No".
Substitute offered by Sen. Hansen Clarke (D) on April 2, 2009
To adopt a version that would give a judge the power to impose a two year moratorium on foreclosing on a mortgage on which the borrower is delinquent under the terms of the loan.
The substitute failed 16 to 21 in the Senate on April 2, 2009.
    See Who Voted "Yes" and Who Voted "No".
To mandate that before initiating “foreclosure by advertisement” proceedings, a mortgage lender or servicer must send a notice to the borrower, and if the borrower chooses to try to renegotiate the loan, prohibit the lender for proceeding with the foreclosure by advertisement for 90 days.
Received in the House on April 21, 2009
To concur with a Senate-passed version of the bill. The vote sends the bill to a House-Senate conference committee to work out the differences.
Received in the House on May 13, 2009
To adopt a compromise version of the bill reported by a House-Senate conference committee. This would mandate that before initiating “foreclosure by advertisement” proceedings, a mortgage lender must give a delinquent borrower 90 days to negotiate a revision of the loan terms. If the borrower's debt service exceeds 38 percent of his or her gross income, the lender would be prohibited from proceeding with the foreclosure by advertisement unless the lender agreed to a "cram-down" revision of the loan bringing the debt service down to that level. (If the institution holding the loan had accepted federal "bail-out" money the loan revision would be on terms dictated by federal regulations.) However, a lender unwilling to accept revision of the loan terms could still undertake judicial foreclosure proceedings, which are more costly and time consuming than foreclosure-by-advertisement.
Received in the Senate on May 19, 2009
Signed by Gov. Jennifer Granholm on May 20, 2009

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