DE HB40

Changes foreclosure notice terminology from "potential defendant" to "borrower[s]" in notices of intent to foreclose sent by certified and first-class mail.

Requires lenders to include detailed mortgage accounting covering the 12-month period prior to alleged default, showing payment allocation and basis for default claim, with certification by lender or servicer.

Permits servicers to send notices on behalf of lenders and requires servicers to identify themselves and recite their authority in certifications.

Establishes that when a bankruptcy petition is filed, mediation cannot continue unless the automatic stay is lifted or a bankruptcy court permits it; if mediation resumes, a new mediation conference must be scheduled before judgment.

Extends the sunset date for foreclosure mediation requirements and related provisions from two years to six years after enactment for the affected laws (78 Del. Laws c. 198, 199, and 200).