HOUSE BILL No. 5298

 

 

October 11, 2007, Introduced by Reps. Johnson, Angerer, Tobocman, Sak, Clack, Simpson, Byrnes, Accavitti, Miller, Melton, Kathleen Law, Hopgood, Constan, Brown, Hammel, Robert Jones, Vagnozzi, Mayes, Clemente, Gonzales, Virgil Smith and Dean and referred to the Committee on Banking and Financial Services.

 

     A bill to amend 2002 PA 660, entitled

 

"Consumer mortgage protection act,"

 

(MCL 445.1631 to 445.1645) by adding sections 7a and 7b.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 7a. (1) If the default of a home loan is cured after the

 

initiation of an action to foreclose the loan and before the court

 

issues a final order of foreclosure, the creditor shall take any

 

steps necessary to terminate the foreclosure proceeding or other

 

action.

 

     (2) The cure of a default of a home loan reinstates the

 

borrower to the same position as if the default had not occurred

 

and nullifies any acceleration of any obligation under the security

 

instrument or note arising from the default as of the date of the


 

cure.

 

     Sec. 7b. Limited to amounts required to reduce or extinguish

 

the borrower's liability under the home loan plus amounts required

 

to recover costs and reasonable attorney fees, a borrower acting

 

only in an individual capacity may assert claims that the borrower

 

could assert against a creditor of the home loan for violations of

 

section 4a against any subsequent holder or assignee of the home

 

loan.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 94th Legislature are

 

enacted into law:

 

     (a) Senate Bill No.____ or House Bill No. 5294(request no.

 

02456'07 *).

 

     (b) Senate Bill No.____ or House Bill No. 5295(request no.

 

04909'07 *).

 

     (c) Senate Bill No.____ or House Bill No. 5296(request no.

 

04910'07 *).

 

     (d) Senate Bill No.____ or House Bill No. 5297(request no.

 

04911'07 *).

 

     (e) Senate Bill No.____ or House Bill No. 5299(request no.

 

04913'07 *).

 

     (f) Senate Bill No.____ or House Bill No. 5300(request no.

 

05435'07).

 

     (g) Senate Bill No.____ or House Bill No. 5301(request no.

 

05436'07).

 

     (h) Senate Bill No.____ or House Bill No. 5302(request no.

 

05437'07).


 

     (i) Senate Bill No.____ or House Bill No. 5303(request no.

 

05438'07).