Introduced by Sen. Arlan Meekhof (R) 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. Official Text and Analysis.
Referred to the Senate Economic Development Committee on February 29, 2012
Reported in the Senate on March 1, 2012
With the recommendation that the bill pass.
Amendment offered in the Senate on March 6, 2012
To clarify that the bill provisions affect existing "non-recourse" loans as well as future ones, and make other technical changes.
The amendment passed by voice vote in the Senate on March 6, 2012