HB 132 Summary

• Expands mandatory mortgage foreclosure dispute resolution to include judicial foreclosure actions, requiring mortgagees to participate in mediation at the mortgagor's election before filing foreclosure in court for owner-occupied residential property

• Applies dispute resolution requirement to judicial foreclosure actions filed before December 1, 2015 that have not yet had an initial court hearing, with such actions immediately suspended upon implementation until mediation requirements are met

• Requires mortgagees to serve notice of dispute resolution availability on owner-occupants before filing judicial foreclosure, with the mortgagor having 30 days to elect participation after the Department of Commerce and Consumer Affairs mails notification

• Establishes that filing a foreclosure action under judicial procedures without complying with the dispute resolution requirements constitutes an unfair or deceptive practice subject to penalties

• Appropriates funds from general revenues to the mortgage foreclosure dispute resolution special fund for fiscal year 2015-2016 and authorizes program expenses and hiring of two exempt staff positions within the Department of Commerce and Consumer Affairs