On a 50 – 0 vote, the Senate passed HB 1176 which probably would have been more useful several years ago, but better late than never, I suppose.
For residential first mortgages closed after June 30, 2009 with an adjustable rate, prepayment fees or penalties are banned. It prohibits “improperly influencing” the independent judgment of a real estate appraiser or the development of an appraisal. The legislation identifies bribery, coercion, extortion, intimidation, and collusion as “improper influences,” but leaves the definition open to additional forms of “improper influences”. Improperly influencing an appraiser or an appraisal would be a Class A misdemeanor and subject to civil enforcement by the attorney general.
And, among several other items, the bill imposes record keeping requirements on “foreclosure consultants.” And it prohibits certain misrepresentations with respect to real estate transactions.
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