SB 1451 - Housing Finance Reform Summary

• Establishes the Arizona Housing Finance Reform Authority to operate the "Secure Home Program," which provides time-out mortgage loans to homeowners to clear title on residential properties with existing liens.

• Authorizes the authority to issue bonds and certificates to finance the program, with principal and interest payable solely from borrower payments and the Arizona Home Insurance Fund.

• Implements a title clearance procedure allowing the authority to purchase residential real property at 101% of fair market value (maximum $700,000) and sell it back to homeowners with a new time-out mortgage loan; existing lien holders receive payment from the title clearance payment amount.

• Creates a state online digital registry for promissory notes and liens on Arizona residential real property, requiring all assignments and transfers to be filed within 30 days with filing fees of $15 to the state and county treasuries.

• Terminates the authority on July 1, 2022, and repeals the authorizing statute on January 1, 2023; prohibits negative credit filings on existing loans once a homeowner participates in the program with penalties of $25,000 per violation.