08RS Senate Bill 41

Senate Bill 41

Actions

Last Action	to Banking & Insurance (S)
Title	AN ACT relating to homeowner protection.
Bill Documents	Bill
Bill Request Number	862
Sponsor	G. Neal
Summary of Original Version	Create a new section of KRS Chapter 198A to establish the Kentucky Homeownership Protection Center; specify the purpose of the center is, among other things, to provide a centralized location for information on, and referral to, public services available to assist a homeowner who is in default on his or her loan; require the center to provide a toll-free telephone number through which a homeowner in financial distress can receive information on the center and its services, a list of counseling agencies, a list of available community resources, staff who can provide a brief assessment of the situation of the homeowner, and applications for public assistance or benefits programs; create new sections of Subtitle 2 of KRS Chapter 286 to require a mortgagee, at the time of closing, to provide to the homeowner a plain language statement which includes a counseling statement, a listing of at least five housing counseling agencies, a list of toll-free telephone numbers for certain programs, contact information for the Kentucky Homeownership Protection Center, and a brief summary of the obligation of the mortgagee to engage in reasonable loss mitigation activities as an alternative to foreclosure; require the mortgagee, at the time of closing, to explain in writing and verbally that the homeowner's name and contact information will be registered with the Kentucky Homeownership Protection Center so the center can contact a homeowner who is 60 days or more late making any mortgage payment; require the mortgagee to notify the center of any homeowner 60 days or more late on payment; provide for notice to be given if the homeowner fails to pay any amount within 30 days or 60 days of the date the amount is due; specify what is required in the notice; require a mortgagee to engage in reasonable loss mitigation activities as an alternative to foreclosure upon default of a federally related mortgage loan.
Index Headings of Original Version	Banks and Financial Institutions - Kentucky Homeowners Protection Center, establishment of Housing, Building, and Construction - Kentucky Homeowners Protection Center, establishment of Loans and Credit - Kentucky Homeowners Protection Center, establishment of State Agencies - Kentucky Housing Corporation, to administer Kentucky Homeowners Protection Center

12/14/07	Prefiled by the sponsor(s).
01/08/08	introduced in Senate to Banking & Insurance (S)