A.B. 2, Special Session
Establishes "higher-priced mortgage loans," as defined, as a new category of regulated loans. The bill, among other things, limits prepayment penalties and prohibits provisions for negative amortization. The bill prohibits a licensed person, as defined, from making false, deceptive, or misleading statements or representations in connection with higher-priced mortgage loans. The bill also, among other things, prohibits a mortgage broker, as defined, who arranges higher-priced mortgage loans with prepayment penalties from receiving a compensation that exceeds certain amounts. Provides that a violation of the provisions regulating higher-priced mortgage loans by a licensed person is also a violation of the person's licensing law. Authorizes a licensing agency or the attorney general to enforce the provisions regulating higher-priced mortgage loans. Authorizes civil penalties in an amount up to $10,000 against a licensed person who willfully and knowingly violates the provisions regulating higher-priced mortgage loans, nullifies prepayment penalties or yield spread premiums that violate these provisions, makes a licensed person who violates these provisions liable to the borrower in the amount of the borrower's actual damages, and authorizes the court to award court costs and attorney's fees to a prevailing plaintiff. Establishes specified duties for mortgage brokers performing mortgage brokerage services for higher-priced mortgage loans. The bill's provisions would apply to higher-priced mortgage loans originated on or after July 1, 2010. Provides that a violation of specified federal lending laws or regulations by specified licensees is also a violation of the licensing law of the licensee. Provides that a mortgage broker, as defined, providing mortgage brokerage services, as defined, to a borrower is the fiduciary of the borrower, and any violation of the broker's fiduciary duties is a violation of the mortgage broker's licensing law and specified civil penalty and liability provisions. The bill further provides that this fiduciary duty includes a requirement that the mortgage broker place the economic interest of the borrower ahead of his or her own economic interest.

A.B. 260
Passed Assembly 6/1/09

Establishes "higher-priced mortgage loans," as defined, as a new category of regulated loans. The bill, among other things, limits prepayment penalties and prohibits provisions for negative amortization. The bill prohibits a licensed person, as defined, from making false, deceptive, or misleading statements or representations in connection with higher-priced mortgage loans. The bill also, among other things, prohibits a mortgage broker, as defined, who arranges higher-priced mortgage loans with prepayment penalties from receiving a compensation that exceeds certain amounts. Provides that a violation of the provisions regulating higher-priced mortgage loans by a licensed person is also a violation of the person's licensing law. Authorizes a licensing agency or the attorney general to enforce the provisions regulating higher-priced mortgage loans. Authorizes civil penalties in an amount up to $10,000 against a licensed person who willfully and knowingly violates the provisions regulating higher-priced mortgage loans, nullifies prepayment penalties or yield spread premiums that violate these provisions, makes a licensed person who violates these provisions liable to the borrower in the amount of the borrower's actual damages, and authorizes the court to award court costs and attorney's fees to a prevailing plaintiff. Establishes specified duties for mortgage brokers performing mortgage brokerage services for higher-priced mortgage loans. The bill's provisions would apply to higher-priced mortgage loans originated on or after July 1, 2010. Provides that a violation of specified federal lending laws or regulations by specified licensees is also a violation of the licensing law of the licensee. Provides that a mortgage broker, as defined, providing mortgage brokerage services, as defined, to a borrower is the fiduciary of the borrower, and any violation of the broker's fiduciary duties is a violation of the mortgage broker's licensing law and specified civil penalty and liability provisions. The bill further provides that this fiduciary duty includes a requirement that the mortgage broker place the economic interest of the borrower ahead of his or her own economic interest.

A.B. 764
Passed Assembly 6/3/09

Requires the real estate commissioner to determine the form of advance fee agreements and loan modification agreements, as defined, and mandates the submission of advance fee agreement and loan modification agreement materials prior to their use. Prohibits advertisements used in obtaining advance fee agreements or loan modification agreements from using words, letters, initials, symbols, or other devices that are similar to those used by a governmental agency or nonprofit entity, as specified. Increases the maximum fine for using any agreement that the commissioner has ordered not to be used from $1,000 to $2,500, and increases the maximum imprisonment time for a violation to 12 months. The Real Estate Law makes it unlawful for any person to claim, demand, charge, receive, collect, or contract for an advance fee for soliciting lenders on behalf of borrowers or performing services for borrowers in connection with a mortgage loan before the borrower becomes obligated to complete the loan and for performing any other activity for which a license is required, unless the person is a licensed real estate broker and has complied with the provisions of the Real Estate Law. A violation of that provision constitutes a public offense punishable by a fine of up to $10,000 for an individual or $50,000 for a corporation. Existing law exempts from that prohibition state-chartered banks, savings associations, credit unions, industrial loan companies, and licensed finance lenders and brokers. This bill increases those fines to $20,000 and $60,000, respectively, and increases the maximum imprisonment time for a violation to 12 months. The bill also makes it unlawful, until January 1, 2013, for any person to claim, demand, charge, receive, collect, or contract for any fee for performing services for borrowers in connection with the modification of the terms of a mortgage loan, unless the person is a licensed real estate broker, and, as applied to licensed real estate brokers, prohibits the collection of any fee for the performance of those services until the loan has been modified, and requires provision of a specified notice prior to commencing those services. Authorizes, until January 1, 2013, the commissioner to adopt rules and regulations to implement provisions related to loan modification agreements, and provides that a violation of the above by an attorney may subject him or her to disciplinary sanctions. The bill further exempts from the fee prohibition licensed residential mortgage lenders and servicers.

A.B. 1160
Passed Assembly 6/18/09

Requires a supervised financial organization, as defined, that negotiates primarily in those languages in the course of entering into a contract or agreement for a loan or extension of credit secured by residential real property, to deliver a translation, as described above, or a translation of one or more of the approved disclosures or forms, as specified. Provides for administrative penalties against specified licensed persons for violations of these provisions. The bill requires the Department of Corporations and the Department of Financial Institutions to create new forms for these purposes, as provided.

A.B. 1422
Passed Assembly 5/28/09

Authorizes a redevelopment agency, until January 1, 2013, to expend any money that is not held in the fund to (1) purchase, assume, or refinance, or assist lenders or nonprofit or for-profit developers in purchasing, assuming, or refinancing, subprime or nontraditional mortgages on homes owned by persons meeting a specified income level within its jurisdiction, or make loans to those homeowners and (2) purchase, or assist lenders or nonprofit or for-profit developers in purchasing, homes within its jurisdiction that have been foreclosed and are vacant and sell those homes, without regard to income. Requires that funds be expended pursuant to these provisions in a manner that preserves the exemption from federal and state income taxes of interest on the bonds or notes issued by the agency under the Community Redevelopment Law.

A.B. 1534
Prohibits a general building contractor from originating, directly or through a related entity, a consumer loan, as defined, to be used for the purchase of a home that is for sale by the contractor or a related entity of the contractor.

A.J.R. 20
Urges the Congress to enact H.R. 230 to provide all homeowners, including those in California, the opportunity to refinance their current home loans with a lower interest rate and to assist qualified home buyers with mortgage financing.

S.B. 94
Passed Senate 5/21/09

This bill, until January 1, 2013, prohibits any person, including a real estate licensee, who negotiates, attempts to negotiate, arranges, attempts to arrange, or otherwise offers to perform residential mortgage loan modifications or other forms of mortgage loan forbearance, as specified, for a fee or other compensation paid by a borrower, from demanding or receiving any preperformance compensation, as specified, requiring any security as collateral for final compensation, or taking a power of attorney from a borrower, and makes a violation of that prohibition a misdemeanor or subject to specified fines. This bill also requires any person, including a real estate licensee, who negotiates, attempts to negotiate, arranges, attempts to arrange, or otherwise offers to perform residential mortgage loan modifications or other forms of mortgage loan forbearance, as specified, for a fee or other compensation paid by a borrower, to provide a specified 14-point bold type statement regarding loan modification fees. The bill makes a violation of that prohibition a misdemeanor or subject to specified fines. The bill also provides that a real estate licensee who fails to comply with specified provisions related to mortgages, including the loan modification provisions, would be subject to disciplinary action by the Real Estate Commissioner, and would provide that a violation of the above by an attorney may also subject him or her to disciplinary action. The bill adds to the California Finance Lenders Law a prohibition on making a materially false or misleading statement or representation to a borrower about the terms or conditions of that borrower's loan, when making or brokering a loan. The bill also provides that these provisions do not apply to actions taken by a person who offers loan modification or other loan forbearance services for a loan owned or serviced by that person, including, but not limited to, collecting principal, interest, or other charges under the terms of a loan, before the loan is modified, including charges to establish a new payment schedule.

H.B. 149
Passed House 6/9/09

Limits compensation that may be received by mortgage loan brokers and licensed lenders who engage in mortgage loan modification services for homeowners.

S.B. 40
Requires certain mortgage lenders to provide a homeowner with six months written notice of a change in the interest rate on a mortgage on the homeowner’s principal residence. This act exempts state and federally chartered banks, their affiliates, and subsidiaries, as they are already subject to significant regulation of their mortgage practices.

S.B. 51
Requires certain mortgage lenders to provide a homeowner with a written notice, within five business days after the mortgage loan becomes 60 days delinquent, which provides the homeowner with important information about how to reinstate the loan. This act exempts state and federally chartered banks, their affiliates, and subsidiaries, as they are already subject to significant regulation of their mortgage practices.

H.B. 264
Relates to conveyances to secure debt in general, so as to revise provisions relating to regulation of security conveyances; repeals certain obsolete provisions relating to due on sale clauses which have been preempted by federal law; provides certain new regulations with respect to certain residential mortgages and deeds to secure debt; prohibits prepayment penalties, negative amortization, and yield spread compensation of loan originators; requires loan originators to verify ability to repay.

H.R. 775
Requests that the United States Congress pass legislation that comprehensively addresses the needs of subprime consumers and eliminates unnecessary home mortgage foreclosures.

S.B. 54
Repeals and reenacts the "Georgia Fair Lending Act"; prohibits abusive home loan practices; provides for definitions; provides for prohibited practices and limitations relating to covered home loans and high-cost home loans; creates specific and numerous consumer protections for covered home loans and high-cost home loans; provides for penalties and enforcement; provides for exceptions for unintentional violations.

S.B. 57
Passed Senate 3/10/09

Relates to the "Georgia Fair Lending Act," so as to provide for and change definitions; provides for limitations on home loans and high-interest home loans; provides for duties for mortgage brokers.

S.R. 759
Requests mortgage lending institutions to adopt rent-to-own programs to help to eliminate unnecessary home mortgage foreclosures.

H.B. 537
Passed House 4/3/09

Amends the Residential Mortgage License Act of 1987. Provides that no licensee may make, provide, or arrange a mortgage loan with a prepayment penalty (rather than permitting prepayment penalties under specified conditions). Provides that prepayment penalties are prohibited in connection with the sale or destruction of a dwelling secured by a residential mortgage loan. Amends the High Risk Home Loan Act to provide that for any loan that is subject to the provisions of the Act and is not subject to the provisions of the Home Ownership and Equity Protection Act of 1994, no lender shall make a high risk home loan that includes a penalty provision (rather than permitting prepayment penalties under specified conditions). Amends the Interest Act. Deletes a provision providing that notwithstanding specified provisions, the lender, in the case of any nonexempt residential mortgage loan, shall have the right to include a prepayment penalty that meets specified criteria.

H.B. 705
Passed House 4/1/09

Further amends the Residential Real Property Disclosure Act. Provides that the predatory lending database program shall be expanded to include Kane, Peoria, and Will counties. Provides that the inception date of the expansion of the program to Kane, Peoria, and Will counties shall be July 1, 2010. Provides that the Department of Financial and Professional Regulation shall submit semi-annual reports that include information by county for each reporting period. Adds to the information to be included in the reports: the number of licensed mortgage brokers and loan originators entering information into the database; the number of investigations based on information obtained from the database, including the number of licensees fined, the number of licenses suspended, and the number of licenses revoked; a summary of the non-traditional mortgage products offered; and a summary of how the Department is actively using the program to combat mortgage fraud.

H.B. 856
Amends the Illinois Banking Act, the Illinois Savings and Loan Act of 1985, the Savings Bank Act, and the Illinois Credit Union Act. Provides that a bank, savings and loan association, savings bank, or credit union organized under the laws of the state that is a lender for a residential mortgage must retain a permanent 25 percent interest in the value of the loan.

H.B. 1094
Amends the Illinois Housing Development Act. Provides that the Authority must use at least $1,000,000,000 of its borrowing authority to refinance residential adjustable-rate mortgages with increased interest rates that take effect within five years after the effective date of the amendatory Act. Provides that the Authority must work with entities in the private sector to make and manage the loans.

H.B. 2084
Amends the High Risk Home Loan Act. Makes a technical change in a section concerning the prohibition on certain home loans.

H.B. 3740
Amends Public Act 95-0731. Provides that amounts appropriated from the Predatory Lending Database Program Fund to the Department of Revenue for grants pursuant to the Predatory Lending Database Program, administered by the Illinois Housing Development Authority, may also be expended for grants to any HUD-certified counseling agency in any county for: mortgage default counseling activities listed in the U.S. Department of Housing and Urban Development Housing Counseling Program Handbook; and counseling to a borrower as specified in the Residential Real Property Disclosure Act.

H.B. 3751
Amends the Illinois Worker Adjustment and Retraining Notification Act. Provides that, if an employer orders a mass layoff, relocation, or employment loss and fails to notify employees, then an employee shall be allowed to suspend interest payments on a home mortgage for 180 days and then pay the deferred interest in equal installments over the remaining term of the mortgage loan.

H.B. 3752
Amends the Illinois Banking Act. Provides that, on and after the effective date of the amendatory Act, any bank chartered under the Act that does business with the state must not offer either (i) No Income No Asset Loans or (ii) No Income, No Job, and No Asset Loans to customers or prospective customers.

H.J.R. 25
Urges Congress to pass legislation that requires the original lender for a residential mortgage to retain a permanent 25 percent interest in the value of the loan.

H.R. 113
Adopted 4/22/09

Urges Congress to ensure that the funds associated with the Troubled Assets Relief Program are allocated to financial institutions that will use the funds for new single-family home mortgages or to refinance existing single-family home mortgages.

S.B. 252
Amends the High Risk Home Loan Act. Makes a technical change in a section concerning the prohibition on certain home loans.

S.B. 253
Passed Senate 4/2/09

Amends the Conveyances Act. Provides that every mortgage securing residential real estate shall have attached a rider, certified by the mortgage lender, that states the name of each participant in the origination of the mortgage, the participant's applicable license or registration number, if any, and the participant's function by using these function categories: mortgage origination company; loan officer; appraiser; real estate broker for the seller, real estate broker for the buyer, lender funding the mortgage; and title insurance company. Provides that a mortgage on residential real estate that is subject to the Illinois predatory lending database pilot program must have attached to it a certificate of compliance or a certificate of exemption issued pursuant to that program.

S.B. 268
Passed House 5/31/09

Amends the Residential Real Property Disclosure Act. Provides that a predatory lending database program shall be established within Cook, Kane, and Will counties (instead of Cook County). Provides that the inception date of the program as it applies to Kane and Will counties shall be January 1, 2010.

H.F. 699
Establishes a financial literacy and counseling program to be administered by the Iowa Finance Authority in collaboration with the Department of Commerce. The one-year pilot program is to be operated in the five counties with the highest mortgage foreclosure rates as of the effective date of the Act. A mortgage banker or mortgage broker issuing mortgage loans to consumers within the five counties must recommend participation in the pilot program to any consumer seeking a mortgage loan with origination fees greater than five percent, and must notify the consumer that the mortgage loan may have attributes that are predatory. A person who offers education, advice, or counseling through the pilot program shall not be held liable for any damages incurred from actions taken based on the education, advice, or counseling obtained under the pilot program. The bill appropriates $5,000 from the state general fund for the 2009-2010 fiscal year to the Authority for administration of the program and directs the Authority to fund the pilot program with moneys declared by the Authority to be surplus. The Authority, in collaboration with the Department of Commerce, must report its findings and recommendations for statewide implementation of the pilot program to the General Assembly by January 15, 2011.

L.D. 1439
Signed by governor 6/11/09, Public Chapter 362

Amends several mortgage lending provisions of the Maine Consumer Credit Code to correct inconsistencies within the law and to conform state law to federal developments that took place during calendar year 2008, including mandatory guidance from federal bank regulators; amendments to the mortgage provisions of federal truth-in-lending laws; and congressional enactment of a federal foreclosure relief law that contained additional changes to federal lending provisions. Enables the state to participate in the national loan originator registration program that is also required by the recent federal foreclosure relief law.

H.B. 858
Requires banks and lending institutions to issue monthly statements to their mortgage loan customers which includes, but is not limited to, the following information: the balance of principal remaining to be paid; the most current interest rate available for the amount of principal remaining on said loan at the time such mortgage statement is printed; a confirmation of the most recent payment received; and the balance of any escrow accounts and a description of any payments from such escrow accounts.

H.B. 1049
Provides that a mortgagor shall not be required to pay a prepayment fee or penalty, or be have funds refused by a bank for property insurance or tax payments, due to limitations set by state or federal agencies for ceiling amounts held in escrow, for the term of the loan. Provides that residential real estate payments under the terms of a first mortgage including property tax and insurance premiums shall be recalculated as needed.

S.B. 471
Provides that a partial payment by a borrower shall be accepted by a mortgagee or mortgage servicer and applied to mortgage debt, provided that the debt arises from a mortgage loan with high points, fees or interest in violation of chapter 183C or a mortgage loan having the following characteristics: (i) adjustable rate loans with an introductory period of three years or less; (ii) a debt-to income ratio in excess of 50 percent of recurring debt under the fully indexed rate; (iii) the loan was approved on a stated income basis; (iv) interest only loans or (v) the loan-to-value ratio is 100 percent or the loan carries pre-payment penalties of greater than three months interest. The partial payment shall be applied in the following priority order: (i) interest, (ii) principal, and (iii) any taxes and insurance that the mortgagee or mortgage servicer is obligated to pay on the mortgage loan on behalf of the borrower. A regularly scheduled mortgage payment subsequent to a partial payment shall be applied as if the partial payment was a full payment. No mortgagee or mortgage servicer shall be required to accept a partial payment in consecutive months or more than two partial payments in a twelve month period. A partial payment shall not constitute a default of the mortgage loan if made in accordance with this section, provided that the difference between the total monthly mortgage payment and the partial payment is remitted within 90 days of the date that the total monthly mortgage payment was due and the mortgagee has paid the amount of monthly mortgage payment owed by that date in full by said date. Upon receipt of a partial payment, the mortgagee or mortgage servicer shall issue to the borrower a statement reflecting the deficiency payment due and specifying that the next regularly scheduled payment will not be reduced by the amount of any deficiency payments. A borrower who has made a partial payment under this section shall clearly identify the funds being remitted to complete the mortgage payment on which a partial payment was previously made. Late fees shall not be assessed in connection with a partial payment or deficiency payment made in accordance with this section. Nothing in this section shall preclude or limit the right to initiate a foreclosure proceeding pursuant to chapter 244. The attorney general shall enforce this section and may obtain injunctive or declaratory relief for this purpose.

S.B. 2346
Died in committee 2/3/09

Provides consumer protections from certain mortgage lending practices relating to balloon payments, negative amortization and prepayment penalties.

S.B. 2501
Died in committee 2/3/09

Provides consumer protections from certain mortgage lending practices relating to balloon payments, negative amortization and prepayment penalties.

S.B. 375
Became law without governor's signature 4/19/09, Chapter 324

Provides that a state bank, credit union, or mortgage lender may not require a borrower, as a condition of obtaining or maintaining a loan secured by real property, to provide insurance on improvements to real property in an amount that exceeds the reasonable replacement value of the improvements.

A.B. 1764
This bill, the “Teaser Rate Protection Act,” provides additional consumer protections for residential mortgage borrowers by prohibiting certain lending practices with respect to “home loans” and “high-cost home loans” as defined in the “New Jersey Home Ownership Security Act of 2002,” P.L.2003, c.64 (C.46:10B-22 et seq.), which prohibits certain abusive lending practices commonly known as predatory lending. Prohibits a creditor from making a home loan to a borrower without verifying and documenting the borrower’s reasonable ability to repay the loan, which shall include a reasonable inquiry into the borrower’s current and expected income, financial obligations, and employment. For adjustable rate, zero rate or “teaser rate” mortgages, which attract borrowers by offering low interest rates at the beginning of the loan but which contain provisions that allow rate increases after the initial rate expires, the reasonable ability to pay shall be determined based on a fully indexed rate and a repayment schedule that achieves full amortization over the life of the loan. The bill also prohibits a creditor from making a high-cost home loan to a borrower unless the creditor establishes an escrow account to ensure that payments for taxes, insurance premiums, and other charges related to the property are collected and paid by the lender. In addition, the bill prohibits the financing of points and fees in connection with a high-cost home loan.

A.B. 1879
S.B. 2561
Provides additional consumer protections for residential mortgage borrowers by requiring certain disclosures not less than seven days prior to closing with respect to “home loans” as defined in the “New Jersey Home Ownership Security Act of 2002,” P.L.2003, c.64 (C.46:10B-22 et seq.). The bill prohibits a creditor from making a home loan unless the creditor has delivered to the borrower, at least seven days prior to the closing of the loan, a statement in writing, showing in clear and distinct terms the following items: (1) amount of the loan; (2) length of the loan; (3) final maturity date; (4) initial annual percentage interest rate; (5) amount of the initial monthly payment, including principal, interest, taxes, and insurance, and the amount of this payment expressed as a percentage of the borrower’s annual gross income; and (6) total points and fees to be paid. If the home loan provides for the possibility of an increase in the annual percentage interest rate, the creditor shall also include on the statement the following items: (1) maximum possible annual percentage interest rate; (2) date the annual percentage interest rate could increase; (3) frequency with which the annual percentage interest rate and monthly payment could increase; (4) maximum possible amount of monthly principal and interest payment, based on a fully indexed rate, and the amount of this payment expressed as a percentage of the borrower’s annual gross income; and (5) maximum possible amount of monthly payment, including principal, interest, taxes, and insurance premiums, based on a fully indexed rate, and the amount of this payment expressed as a percentage of the borrower’s annual gross income.

A.B. 2934
S.B. 1956
Allows an aggrieved employee or former employee of an employer who has been found to be in violation of the “Millville Dallas Airmotive Plant Job Loss Notification Act,” P.L. 2007, c.212 (C.34:21-1 et seq.), also more commonly referred to as the “plant closing law,” or the “NJ WARN Act,” to request a suspension of the payment of interest on a mortgage loan that was secured by the person before entry of the court order finding a violation of that act. The suspension would remain in effect for 180 days from the date of the order and interest that was incurred during that time shall be paid, after the expiration of the suspension, in equal installments over the remaining term of the mortgage loan. The bill only applies to a person who is domiciled in this state and to a mortgage securing a primary residence located in this state. To obtain the suspension, a person would submit to the mortgagee a written request which shall include: (1) a copy of the court order finding a violation of P.L.2007, c.212 (C.34:21-1 et seq.); and (2) an affidavit stating that the person is an aggrieved employee or former employee of the employer named in the order and further that the person is a mortgagor of the mortgage loan with respect to which the request is being made.

A.B. 3927
Increases and clarifies the permissible categories of fees chargeable by residential mortgage lenders and residential mortgage brokers.  The “New Jersey Residential Mortgage Lending Act,” sections 1 through 39 of P.L.2009, c.53 (C.17:11C-51 et seq.), created these new designations related to mortgage lending activities, and persons and entities will begin receiving licenses under these designations no later than July 31, 2010, or a later date approved by the Secretary of the United States Department of Housing and Urban Development, in accordance with the provisions of the act and applicable federal law. Under the bill, when combined with the existing statutory law, a residential mortgage lender, once licensed, may charge only the following fees in connection with any mortgage loan transaction not involving a secondary mortgage loan: (1) credit report fee; (2) appraisal fee; (3) application fee, except that a residential mortgage lender shall not charge an application fee if a residential mortgage broker, pursuant to the bill, charges an application fee in connection with the loan; (4) commitment fee; (5) warehouse fee; (6) fees necessary to reimburse the residential mortgage lender for charges imposed by third parties; (7) discount points, which shall be disclosed as a percentage of the loan amount or a fraction thereof, payable to reduce the interest rate on that loan; (8) lock-in fee; and (9) origination fee, or alternatively, points, which shall be disclosed as a percentage of the loan amount or a fraction thereof. Additionally, a residential mortgage broker, once licensed, may charge only the following fees in connection with any mortgage loan transaction not involving a secondary mortgage loan: (1) application fee; and (2) broker fees, which may be disclosed as a percentage of the loan amount or a fraction thereof, or as a flat fee, and a portion of which may be disclosed as an origination fee to meet Federal Housing Administration or Veterans Benefits Administration loan requirements.

A.R. 156
Adopted 10/27/08

S.R. 91
Urges the United States attorney general, the United States secretary of the Treasury, the chairman of the Federal Deposit Insurance Corporation, the chairman of the Federal Reserve, and the chairman of the United States Securities and Exchange Commission to enforce existing federal laws and regulations governing financial institutions in as vigorous a manner as possible in view of the present economic circumstances, specifically focusing on oversight of financial institutions' risk management practices and closer supervision of underwriting standards for new mortgage products.

S.B. 1619
Provides greater regulatory oversight and consumer protections concerning certain mortgage products, mortgage lending, and mortgage foreclosure practices. For current and future borrowers facing mortgage foreclosures, the bill provides additional consumer protections by expanding and clarifying the scope and provisions of P.L.1979, c.16 (C.17:16G-1 et seq.), concerning debt adjustment and credit counseling activities, to expressly incorporate certain “foreclosure consulting practices.” The bill clarifies that under existing law, foreclosure consultants who, directly or indirectly, solicit, offer to perform, or perform debt adjustment or credit counseling activities for property owners facing foreclosure with respect to such owners’ ability to retain ownership or possession of their property, are required to be licensed in this state as debt adjusters. The bill also includes “distressed property purchasers” as among those who must be licensed as debt adjusters under the law. A distressed property purchaser is anyone who acquires an interest in fee or a beneficial interest through a trust document in a distressed property, while allowing the debtor-owner to possess, occupy, or retain a leasehold interest or any present or future interest in fee in the property, or anyone involved in a joint venture or enterprise involving a distressed property conveyance. The bill provides the commissioner of Banking and Insurance with additional regulatory authority to oversee foreclosure consulting activities as well as other debt adjustment and credit counseling activities in this state. Such regulatory authority includes: i) permitting the commissioner to establish licensing requirements for any agent, officer, or employee of a debt adjuster, or any category of agent, officer, or employee, which may include disqualifications based upon standards of good moral character; and ii) permitting the commissioner, as part of any licensing application, to require the applicant, or any category of applicants, to consent to a criminal history record background check, and any additional background check as deemed appropriate. While the commissioner is already authorized to request an annual report from any debt adjuster concerning that adjuster’s activities conducted in the preceding calendar year, the bill emphasizes that the commissioner may also collect information from a debt adjuster encompassing only one or more particular activities, such as those activities primarily performed with respect to foreclosure consulting. The bill, concerning penalties for violations of the applicable debt adjustment and credit counseling law, would permit any person to bring an action for punitive damages, as well as receive attorney’s fees and costs of suit. Additionally, the bill clarifies the law’s penalty provisions by emphasizing that the commissioner’s existing authority to enjoin any licensed debt adjuster and “any other person concerned or in any way participating in” a violation, includes, with respect to distressed property conveyances, any mortgage banker, mortgage broker, or other licensee licensed pursuant to the “New Jersey Licensed Lenders Act,” P.L.1996, c.157 (C.17:11C-1 et seq.), any real estate broker, broker-salesperson, or salesperson licensed pursuant to R.S.45:15-1 et seq., or any real estate appraiser licensed or certified pursuant to the "Real Estate Appraisers Act," P.L.1991, c.68 (C.45:14F-1 et seq.).

S.B. 2176
Allows an aggrieved employee or former employee of an employer who has been found to be in violation of the “Millville Dallas Airmotive Plant Job Loss Notification Act,” P.L.2007, c.212 (C.34:21-1 et seq.), also more commonly referred to as the “plant closing law,” or the “NJ WARN Act,” to request a suspension of the payment of interest on a mortgage loan that was secured by the person before entry of the court order finding a violation of that act. The suspension would remain in effect for one year from the date of the order and interest that was incurred during that time shall be paid, after the expiration of the suspension, in equal installments over the remaining term of the mortgage loan. The bill only applies to a person who is domiciled in this state and to a mortgage securing a primary residence located in this state. To obtain the suspension, a person would submit to the mortgagee a written request which shall include: (1) a copy of the court order finding a violation of P.L.2007, c.212 (C.34:21-1 et seq.); and (2) an affidavit stating that the person is an aggrieved employee or former employee of the employer named in the order and further that the person is a mortgagor of the mortgage loan with respect to which the request is being made.

S.R. 54
Memorializes the Congress of the United States to protect residential mortgage borrowers by enacting legislation to allow state predatory lending laws to apply to federally chartered financial institutions and their subsidiaries, or in the alternative, by enacting uniform federal legislation to restrict predatory lending practices by all federally chartered financial institutions and their subsidiaries.

A.B. 170
Passed Assembly 3/19/09

S.B. 5102
Prohibits home improvement contractors from also acting on behalf of mortgage brokers; prohibits a mortgage broker from paying a home improvement contractor directly unless they perform their own inspection of the completed work.

A.B. 257
Passed Assembly 5/6/09

S.B. 2367
Requires mortgage lenders and brokers to provide consumers with a mortgage bill of rights pamphlet which must be read and signed by the consumer prior to applying for a mortgage.

A.B. 1240
Enacts the "disclosure in lending act"; provides greater disclosure to borrowers; requires a depiction, chart or table be given to borrowers of certain information; requires the banking department to establish a website dedicated to the risk of sub-prime mortgages; grants enforcement actions.

A.B. 1430
Requires mortgagee banks to provide written notice to mortgagor when such mortgagor is no longer required to maintain personal mortgage insurance coverage; provides such notice shall be delivered to the mortgagor within 30 days of the date upon which the mortgagor shall have acquired sufficient equity in real property subject to the mortgage so as to eliminate the necessity for personal mortgage insurance.

A.B. 2096
S.B. 1221
Prohibits mortgagees from requiring mortgagors of certain pieces of real property to purchase flood insurance coverage exceeding the actual value of the loan.

A.B. 3192
Enacting clause stricken 6/17/09

Requires a loan counseling disclosure as part of contract of sale for the transfer of property; provides that such form shall be signed at the time of contract and attached to the contract of sale.

A.B. 3197
Requires any entity that provides mortgages to inform its customers of the potential adverse effect mortgage rate shopping may have on the customers' credit ratings.

A.B. 3318
S.B. 2590
Requires the mortgage bill of rights, as proposed in a chapter of the laws of 2009, to be printed and posted on the Banking Department Web site in the eight languages that are most spoken in the state.

A.B. 3386
Enacts the "Home Equity Fraud Act" to control improper activities by home improvement contractors and finance companies; prohibits mortgage brokers or agents from acting as home improvement contractors; provides additional protections for mortgagors and home owners.

A.B. 4734
Relates to the dealings of mortgage brokers and home improvement contractors; specifies that the staff of a home improvement contractor shall not act on behalf of a mortgage broker, and that a mortgage broker shall not pay a home improvement contractor unless they performs their own inspection of the completed work.

A.B. 5441
S.B. 4506
Permits a one-time deferral of two consecutive monthly mortgage payments for the balance of the term of the mortgage on a residential mortgage; provides that the mortgage term be automatically extended by the period of such deferral and that the amount of monthly payments remain the same and not be recalculated.

A.B. 5683
Increases the bond limit of the state of New York mortgage agency for the purpose of refinancing subprime loans at risk of foreclosure.

A.B. 6828
Enacts the "New York Sub-prime Predatory Lending Prevention Act"; establishes guidelines for sub-prime loans; establishes duties of mortgage bankers and mortgage brokers; relates to the qualifications for licensing and certification of real estate appraisers.

A.B. 7705
S.B. 2073
Waives mortgage tax on the refinanced mortgage that replaces an adjustable rate mortgage initially offered at a sub-prime rate.

A.B. 8610
S.B. 2843
Provides that where a home improvement contractor is acting as a mortgage broker without being registered as required under the Banking Law, a mortgage banker, mortgage broker or exempt organization may not engage in such transaction with the contractor, and shall promptly notify the banking department that such person is acting as an unregistered broker.

A.B. 8917
Relates to home mortgage loans, the crime of mortgage fraud and the filing of transfers and assignments of mortgages.

S.B. 134
Passed Senate 5/13/09

Requires a loan counseling disclosure as part of contract of sale for the transfer of property; provides that such form shall be signed at the time of contract and attached to the contract of sale.

S.B. 3956
Imposes certain requirements with respect to permissible interest rate discounts, interest rate increases and the use of negative amortization provisions in alternative mortgage instruments and removes the statutory provisions on graduated payment mortgage instruments which currently limit such provisions to mortgages on one to six family units given by a natural person.

S.B. 4875
Relates to refinancing of an existing mortgage loan; provides for a separate disclosure which compares monthly payments under the previous mortgage with the combined monthly payments for the new mortgage loan, property tax and insurance.

H.B. 1319
Relates to rescission periods for mortgages.

H.B. 2188
Passed both houses 6/9/09

Prohibits a mortgage banker, mortgage broker or loan originator from making, negotiating or offering to make or negotiate negative amortization loan without evaluating and verifying the borrower's ability to repay the loan. Requires a mortgage banker, mortgage broker or loan originator that advertises or solicits business and conducts transaction substantially in language other than English to provide the borrower with certain materials in the language in which the parties conduct the transaction.

S.R. 412
Orders the Committee on Banking, Consumer Affairs and Public Corporations to investigate the process and procedure of granting mortgage loans or refinancing residential or related to residential mortgage companies in Puerto Rico known as the Mortgage Banks, Mortgage Brokers, Mortgage Houses, Mortgage Lenders, or the like.

H.B. 3049
Provides for the termination of acceptance of mortgage insurance premium payments and the return of escrowed mortgage insurance premiums by a lender who required mortgage insurance in connection with a consumer home loan transaction under certain circumstances.

H.B. 3790
Passed House 5/1/09

Enacts the "South Carolina Mortgage Lending Act", by adding Chapter 22 to Title 37 so as to require the licensing of a mortgage lender, loan originator, or someone acting as a mortgage lender; provides definitions; establishes qualifications for licensure and grounds for revocation, suspension, renewal, and termination; describes prohibited activities; provides for record-keeping, trust and escrow accounts, and annual reports; provides for enforcement through administrative action by the commissioner of the Consumer Finance Division of the Board of Financial Institutions and through criminal penalties, and provides for participation in a national mortgage registry; amends §§37-1-301, 37-3-105, 37-3-501, and 37-23-20, all relating to definitions in connection with mortgage lending and brokering and high-cost and consumer home loans, so as to conform definitions, and adds a definition for "adjustable rate mortgage"; amends §§37-23-40, 37-23-45, and 37-23-75, all relating to protections for the borrower in a high-cost or consumer home loan transaction, so as to require certain disclosures in connection with an adjustable rate mortgage; amends §29-4-20, relating to the definition of "reverse mortgage", so as to conform the definition; and amends Chapter 58, Title 40, relating to the registration of mortgage loan brokers, so as to change the registration requirements to licensing requirements, to conform definitions to those set forth in the South Carolina Mortgage Lending Act, requires certain professional courses, an additional year of experience, and a fingerprint check for mortgage brokers and loan originators, requires certain records be kept and made accessible, adds certain prohibitions in connection with a real estate appraisal, requires and prescribes mortgage broker agreements, authorizes enforcement by the Department of Consumer Affairs and prescribes administrative penalties including fines and injunctions and a criminal penalty, requires certain reports and filings, and provides for participation in a nationwide mortgage registry.

H.R. 3403
Memorializes the United States Congress to implement the Homeowners and Bank Protection Act.

S.B. 673
Became law without governor's signature 6/3/09

Amends the Code of Laws of South Carolina, 1976, so as to enact the "South Carolina Mortgage Lending Act", by adding Chapter 22 to Title 37 so as to require the licensing of a mortgage lender, loan originator, or someone acting as a mortgage lender; provides definitions; establishes qualifications and requirements for licensure and grounds for revocation, suspension, renewal, and termination; describes prohibited activities; provides for record-keeping, trust and escrow accounts, and annual reports; provides for enforcement through administrative action by the commissioner of the Consumer Finance Division of the Board of Financial Institutions and through criminal penalties, and provides for participation in a national mortgage registry; amends §34-1-20, as amended, relating to appointment of members of the state Board of Financial Institutions, so as to provide for a representative of the mortgage bankers association; amends §34-1-110, as amended, relating to authority of certain financial institutions to engage in business, so as to provide for mortgage lenders and loan originators; amends §§37-1-301, 37-3-105, 37-3-501, and 37-23-20, all relating to definitions in connection with mortgage lending and brokering and high-cost and consumer home loans, so as to conform definitions, and includes certain adjustable rate mortgages as a high-cost home loan and defines "adjustable rate mortgage"; amends §§37-23-40, 37-23-45, and 37-23-75, all relating to protections for the borrower in a high-cost or consumer home loan transaction, so as to require certain disclosures in connection with an adjustable rate mortgage; amends §29-4-20, relating to the definition of "reverse mortgage", so as to conform the definition; and amends Chapter 58, Title 40, relating to the registration of mortgage loan brokers, so as to change the registration requirements to licensing requirements, conforms definitions to those set forth in the South Carolina Mortgage Lending Act, requires certain professional courses, an additional year of experience, and a fingerprint check for mortgage brokers and loan originators, requires certain records be kept and made accessible, adds certain prohibitions in connection with a real estate appraisal, requires and prescribes mortgage broker agreements, authorizes enforcement by the Department of Consumer Affairs and prescribes administrative penalties including fines and injunctions and a criminal penalty, requires certain reports and filings, and provides for participation in a nationwide mortgage registry.

H.B. 8
S.B. 711
Limits fee that high-cost home loan lenders may charge for third or subsequent pay-off statement provided to borrower in 12-month period to $10.

H.B. 704
S.B. 2016
Requires that a mortgage counselor be consulted before an adjustable rate mortgage can be completed.

H.B. 1926
S.B. 749
Requires a lender of a high-cost home loan to verify that the borrower has received appropriate housing counseling.

H.J.R. 146
Urges Congress to implement the Homeowners and Bank Protection Act.

H.J.R. 29
Adopted 5/8/09

Urges Congress to enact a new Homeowner and Bank Protection Act.

H.R. 18
Adopted 5/1/09

Urges that excessive fees for mortgages should be eliminated.

H.B. 1586
Defines nontraditional mortgages.

S.B. 5858
Prohibits a mortgage broker from receiving a yield spread premium payment prior to or after the closing of a residential mortgage loan.

H.B. 292
Prohibits lenders from requiring property insurance exceeding the value of improvements on real property; provides penalties.