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).