House File 706 - Introduced



                                       HOUSE FILE       
                                       BY  COMMITTEE ON VETERANS
                                           AFFAIRS

                                       (SUCCESSOR TO HF 251)


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

                                      A BILL FOR

  1 An Act relating to and publicizing mortgage foreclosure and real
  2    estate obligation protections for members of the national
  3    guard, and the reserve or regular component of the armed
  4    forces of the United States in active duty service, and
  5    providing a penalty.
  6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  7 TLSB 2188HV 83
  8 rn/rj/5

PAG LIN



  1  1    Section 1.  Section 29A.102, subsection 3, Code 2009, is
  1  2 amended to read as follows:
  1  3    3.  A person who knowingly repossesses property which is
  1  4 the subject of this section, other than as provided in
  1  5 subsection 1, commits a simple serious misdemeanor.
  1  6    Sec. 2.  Section 29A.103, subsection 4, Code 2009, is
  1  7 amended to read as follows:
  1  8    4.  A person who knowingly forecloses on property that is
  1  9 the subject of this section, other than as provided in
  1 10 subsection 1, commits a simple serious misdemeanor.
  1 11    Sec. 3.  NEW SECTION.  654.17B  MILITARY FORECLOSURE
  1 12 PROTECTION == NOTICE.
  1 13    1.  A creditor shall not initiate a proceeding to enforce
  1 14 an obligation payable under its terms in installments under a
  1 15 contract for the purchase of real estate, or secured by a
  1 16 mortgage or other instrument in the nature of a mortgage upon
  1 17 real estate, against a borrower, or a borrower's dependents,
  1 18 under the following circumstances:
  1 19    a.  The borrower is a member of the national guard and
  1 20 entitled to protection under the Iowa national guard civil
  1 21 relief provisions contained in chapter 29A, subchapter VI.  A
  1 22 creditor who initiates a proceeding in violation of this
  1 23 subsection against a borrower specified in this paragraph or
  1 24 the borrower's dependent is subject to applicable penalty
  1 25 provisions contained in sections 29A.102 and 29A.103.
  1 26    b.  The borrower is a member of the reserve or regular
  1 27 component of the armed forces of the United States in active
  1 28 duty service and entitled to protection under the federal
  1 29 Servicemembers Civil Relief Act of 2003, 50 U.S.C. app 532 and
  1 30 533.  A creditor who initiates a proceeding in violation of
  1 31 this subsection against a borrower specified in this paragraph
  1 32 or the borrower's dependent is subject to applicable penalty
  1 33 provisions contained in the federal Act.
  1 34    2.  The department of veterans affairs and the department
  1 35 of commerce shall coordinate to develop a procedure to inform
  2  1 or notify members of the national guard, reserve, or regular
  2  2 component of the armed forces of the United States, and
  2  3 financial institutions as defined in section 12C.1, of the
  2  4 protections referenced in subsection 1.  The notification
  2  5 procedure shall include, at a minimum, posting the information
  2  6 on an official internet site maintained by each department.
  2  7                           EXPLANATION
  2  8    This bill relates to a prohibition against repossessions or
  2  9 foreclosures on real property owned by members of the national
  2 10 guard, or members of the reserve or regular component of the
  2 11 armed forces of the United States in active duty service, or
  2 12 their dependents.
  2 13    Current law affords court=ordered protection against a
  2 14 foreclosure or repossession action initiated by a creditor
  2 15 against a member of the national guard, and provides a
  2 16 mechanism whereby a service member may apply to a court for
  2 17 relief from obligations relating to a contract for the
  2 18 purchase of real estate or secured by a mortgage or other
  2 19 instrument in the nature of a mortgage.  Similar protection is
  2 20 afforded to members of the regular or reserve components of
  2 21 the armed forces of the United States in active duty service
  2 22 and protected under the federal Servicemembers Civil Relief
  2 23 Act of 2003.
  2 24    The bill references both protections in Code chapter 654,
  2 25 relating to foreclosures on real estate mortgages, and states
  2 26 that initiation of an action which violates the protections
  2 27 shall result in penalties applicable in the Code with regard
  2 28 to national guard members, or pursuant to the federal Act with
  2 29 regard to members of the regular or reserve components of the
  2 30 armed forces.  The bill increases the penalty applicable to
  2 31 actions initiated against members of the national guard from
  2 32 the current penalty of a simple misdemeanor to a serious
  2 33 misdemeanor.
  2 34    Additionally, the bill provides that the departments of
  2 35 veterans affairs and commerce shall jointly develop a
  3  1 procedure to notify military personnel specified in the bill
  3  2 and financial institutions about the protections.
  3  3 LSB 2188HV 83
  3  4 rn/rj/5