HB 1402 Summary

• Establishes the underwater mortgage refinancing program administered by the Department of Financial Institutions, with guidelines required by June 1, 2013.

• Defines an "underwater mortgage" as a mortgage where the outstanding balance exceeds the property's market value as determined by appraisal.

• Requires creditors to obtain approved creditor status by submitting certification attesting they offer underwater mortgage refinancing in Indiana and meet specified requirements, including no significant violations of mortgage laws and no directors/executives with felony convictions for fraud or misrepresentation.

• Mandates approved creditors provide written explanations to applicants denied refinancing and submit annual reports on mortgage products offered, applications received, and closings completed for Indiana customers.

• Requires the Department to publish and maintain a list of approved creditors on its website and remove creditors found to violate program requirements; establishes confidentiality protections for debtor personal information submitted in program reports.