HB 5417 Summary

• Defines "loan modification" as a lender's modification to an existing loan in response to a borrower's long-term inability to repay, which may include reducing the interest rate, extending the loan term, or both.

• Exempts licensed real estate brokers and salespersons with at least five years of experience from appraisal certification requirements when estimating real estate value for mortgage loan modifications.

• Allows brokers and salespersons to provide value estimates to mortgagees, mortgage servicers, or their attorneys for loan modification purposes without the estimate being classified as an appraisal.

• Effective October 1, 2012.