HB 14-1295 Summary

• Requires mortgage servicers to establish a single point of contact for borrowers within 45 days of delinquency to provide accurate information about loss mitigation options and foreclosure procedures.

• Prohibits "dual tracking" by preventing servicers from pursuing foreclosure while a borrower has a complete loss mitigation application pending or has accepted a loss mitigation option.

• Requires servicers to notify borrowers in writing when a complete loss mitigation application is received and to exercise reasonable diligence in obtaining documents needed to complete applications.

• Allows borrowers to stop foreclosure sales by presenting written notification of a complete loss mitigation application at least 37 days before the sale date, triggering officer inquiry and sale continuation procedures.

• Exempts servicers with 5,000 or fewer mortgage loans and those complying with federal CFPB regulations (12 CFR 1024.40 and 1024.41) from these requirements.

• Effective January 1, 2015, for all foreclosure proceedings initiated on or after that date.