HB 2383 Summary

• Establishes duties of good faith and fair dealing for mortgage loan servicers, including acting with reasonable skill and care, educating borrowers about loss mitigation options, and maintaining trained personnel to respond to borrower inquiries.

• Requires servicers to pursue loss mitigation options before foreclosure on primary residences and to ensure all foreclosure documents are accurate and verified by individuals with personal knowledge.

• Mandates servicers to acknowledge loss mitigation requests within 10 business days, complete eligibility evaluations within 30 days, and provide written notice explaining reasons for approvals or denials of loan modifications.

• Prohibits servicers from engaging in unlawful practices and from misrepresenting material information regarding fees, loan terms, servicer obligations, and reasons for denying loss mitigation requests.

• Establishes single points of contact for borrowers, requires servicers to offer affordable and sustainable loan modifications, and creates escalation procedures for borrower disagreements; violations constitute unlawful practices enforceable by the attorney general.