1st Sub. S.B. 143
         MORTGAGE AND FINANCIAL AFFAIRS AMENDMENTS

House Floor Amendments

Amendment 1 March 14, 2013 10:26 PM



Representative LaVar Christensen proposes the following amendments:

1.    Page 1, Lines 15 through 16 :    

             15          .    
{   limits the requirements described in this bill to beneficiaries that are also financial

             16      institutions  
}
  excludes, under certain circumstances, a beneficiary that is a small business from the requirements described in this bill       ;


2.    Page 2, Lines 31 through 32 :    

             31          (a)
{   "Beneficiary" means a financial institution that is the record owner of the beneficial

             32      interest under a trust deed, including successors in interest  
}
  "Affiliate" is as defined in Section 16-10a-102       .


3.    Page 2, Line 37 through Page 3, Line 60 :    

             37          
{   (d) "Financial institution" means:

             38          (i) a state or federally chartered:
             39          (A) bank;
             40          (B) savings and loan association;
             41          (C) savings bank;
             42          (D) industrial bank; or
             43          (E) credit union; or
             44          (ii) any other entity under the jurisdiction of the commissioner of financial institutions
             45      as provided in Title 7, Financial Institutions Act.  
}

             46          [(b)]
{   (e)   }        (d)       "Foreclosure relief" means a mortgage modification program or other

             47      foreclosure relief option offered by a beneficiary or servicer.
             48          [(c)]
{   (f)   }        (e)       "Loan" means an obligation incurred for personal, family, or household

             49      purposes, evidenced by a promissory note or other credit agreement for which a trust deed
             50      encumbering owner-occupied residential property is given as security.
             51          [(d)]
{   (g)   }        (f)       "Owner-occupied residential property" means real property that is occupied by

             52      its owner as the owner's primary residence.
             53          [(e)]
{   (h)   }        (g)       "Servicer" means an entity, retained by the beneficiary:

             54          (i) for the purpose of receiving a scheduled periodic payment from a borrower pursuant
             55      to the terms of a loan; or
             56          (ii) that meets the definition of servicer under 12 U.S.C. Sec. 2605(i)(2) with respect to
             57      residential mortgage loans.


             58          
{   (f)   }        (h)       "Single point of contact" means [a person] an individual      {   or the individual's

             59      replacement  
}
who, as the designated representative of the beneficiary or servicer, is authorized
             60      to:

4.    Page 3, Lines 67 through 68 :    

             67          [(ii) direct] (iii)
  coordinate,       access        ,       and be informed of the        status and       procedural details of all foreclosure

             68      proceedings initiated by the beneficiary or servicer relating to the trust property, including:

5.    Page 3, Line 72 :    

             72          (C) the postponement of a trustee's sale under Section 57-1-27 or this section.
  (i)    (i)    "Small business" means an entity that has fewer than 10 employees.

    (ii)    "Small business" does not include an entity that is a subsidiary or affiliate of another entity that has 10 or more employees.  


6.    Page 4, Lines 98 through 101 :    

             98          (4) A default trustor shall, within the time required by the beneficiary or servicer,
             99      provide
{   all   }        the       financial and other information requested by the      {   [   } single point of contact      {   ]   }        on behalf of the      

             100      beneficiary or servicer
  that is reasonably necessary       to enable the beneficiary or servicer to determine whether the default

             101      trustor qualifies for the foreclosure relief for which the default trustor applies.

7.    Page 4, Line 114 :    

             114          (6) If a default trustor applies for foreclosure relief and provides
{   all   }        the       information


8.    Page 5, Lines 142 through 143 :    

             142          
{   [   } (12) This section does not apply      {   if the beneficiary under   }        to       a trust deed      {   securing a loan   }        that has a beneficiary that       is        :      

             143          
  (a)       an individual        ; or

    (b)    a small business, if a principal of the small business is available to communicate with the default trustor to the same extent as a single point of contact  
.      {   ]   }


9.    Page 6, Lines 151 through 153 :    

             151          
{   [(14)] (13) The failure of a beneficiary or servicer to comply with a requirement of this

             152      section does not affect the validity of a trustee's sale of the trust property [to a bona fide
             153      purchaser].  
}


Page 1 of 2
LRGC cgilbert cgilbert X 03/11/13 7:18p