House File 429 - Introduced



                                  HOUSE FILE       
                                  BY  THEDE, MURPHY, BURT, MERTZ,
                                      T. TAYLOR, MASCHER, SWAIM,
                                      H. MILLER, PETERSEN, BERRY,
                                      COHOON, ZIRKELBACH, GASKILL,
                                      FREVERT, LYKAM, WHITEAD, BUKTA,
                                      WHITAKER, OLDSON, D. OLSON,
                                      SMITH, SCHUELLER, JACOBY,
                                      WENDT, FICKEN, WENTHE, PALMER,
                                      ISENHART, ABDUL=SAMAD, HUNTER,
                                      WINCKLER, STECKMAN, KUHN,
                                      LENSING, SHOMSHOR, R. OLSON,
                                      KEARNS, FORD, BEARD, T. OLSON,
                                      REASONER, and HEDDENS


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act providing for the availability of a mortgage help hotline
  2    contained in a mortgagor's right to cure.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2112HH 83
  5 rh/rj/5

PAG LIN



  1  1    Section 1.  Section 654.2B, Code 2009, is amended to read
  1  2 as follows:
  1  3    654.2B  REQUIREMENTS OF NOTICE OF RIGHT TO CURE.
  1  4    1.  The notice of right to cure shall be in writing and
  1  5 shall conspicuously state the name, address, and telephone
  1  6 number of the creditor or other person to which payment is to
  1  7 be made, a brief identification of the obligation secured by
  1  8 the deed of trust or mortgage and of the borrower's right to
  1  9 cure the default, a statement of the nature of the right to
  1 10 cure the default, a statement of the nature of the alleged
  1 11 default, a statement of the total payment, including an
  1 12 itemization of any delinquency or deferral charges, or other
  1 13 performance necessary to cure the alleged default, and the
  1 14 exact date by which the amount must be paid or performance
  1 15 tendered and a statement that if the borrower does not cure
  1 16 the alleged default the creditor or a person acting on behalf
  1 17 of the creditor is entitled to proceed with initiating a
  1 18 foreclosure action or procedure.  The failure of the notice of
  1 19 right to cure to comply with one or more provisions of this
  1 20 section is not a defense or claim in any action pursuant to
  1 21 this chapter and does not invalidate any procedure pursuant to
  1 22 chapter 655A, unless the person asserting the defense, claim,
  1 23 or invalidity proves that the person was substantially
  1 24 prejudiced by such failure.
  1 25    2.  The notice of right to cure shall also include
  1 26 information relating to the availability of a statewide,
  1 27 toll=free telephone mortgage help hotline for use by persons
  1 28 experiencing financial difficulties in making mortgage
  1 29 payments.
  1 30                           EXPLANATION
  1 31    The bill provides that a mortgagor's notice of a right to
  1 32 cure shall also include information relating to the
  1 33 availability of a statewide, toll=free telephone mortgage help
  1 34 hotline for use by persons experiencing financial difficulties
  1 35 in making mortgage payments.
  2  1 LSB 2112HH 83
  2  2 rh/rj/5