HB 13-1017 Summary

• Requires successor mortgage servicers to honor any loan modification offers that borrowers accepted from prior servicers before the servicing rights transferred.

• Mandates that when servicing rights are transferred, the transferor must inform the successor servicer whether a loan modification is pending and of all modification offer terms.

• Contractual obligations for successor servicers must include accepting and continuing to process pending loan modification requests and honoring any trial and permanent loan modification agreements made by prior servicers.

• Allows borrowers to sue for violations if the servicer fails to comply; courts must award actual damages plus $1,000 and reasonable attorney fees if damages are proven, provided the borrower made a good faith effort to resolve the dispute first.

• Applies to all loan modification offers made on or after the effective date of the act.