Richardville hears testimony on home foreclosure legislation in Senate banking committee
LANSING – The Senate Banking and Financial Institutions Committee today held its first hearing on a legislative package designed to help Michigan homeowners who are facing foreclosure, said Sen. Randy Richardville, chair of the committee.
“During the past two years, I introduced legislation to help improve circumstances in the mortgage industry,” said Richardville, R-Monroe. “The new laws are helping, but more must be done to address the home foreclosure crisis. I am committed to assisting homeowners in Michigan and will continue to work with the state House to ensure that more families can stay in their homes.”
House Bills 4453 through 4455 would revise Michigan’s “foreclosure by advertisement” process to encourage greater communication and negotiation between lenders and borrowers.
Under the legislation, lending institutions would be required to send a written notice to borrowers before foreclosing on a principal residence. Upon receipt of the notice, if a homeowner decides to work with the lender, the two parties would have 90 days to meet and develop an agreeable solution.
Richardville said he plans on holding another committee hearing on Wednesday, March 25 to allow more discussion on the issue.
“The committee will continue to hear from consumer advocacy groups, members of the mortgage industry and others interested in this legislation,” Richardville said. “I hope to move the bills forward in the coming weeks because communication between lenders and consumers is imperative in helping to reduce foreclosures.”
Members of the committee also approved legislation today that expands mortgage loan officer registration requirements to those loan officers who are regulated under the Consumer Financial Services Act. The requirements are consistent with other loan officer requirements Richardville sponsored last session.
Senate Bills 379 through 381 ensure that all loan officers conducting business in Michigan will now be required to register with the state.
Posted: Wednesday, March 18, 2009
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