Senate Bill 930 Summary

• Creates the Foreclosure Protection Act to regulate mortgage foreclosure consultants and equity purchasers who deal with homeowners facing foreclosure in Michigan.

• Requires foreclosure consulting contracts to be in writing, provided for 24-hour review before signing, notarized, and include specific disclosures about services and compensation; prohibits compensation until services are fully performed.

• Grants homeowners unconditional cancellation rights for foreclosure consulting contracts at any time and equity purchase contracts until 12 midnight of the third business day after signing or 12 noon the day before foreclosure sale, whichever is first.

• Prohibits foreclosure consultants and equity purchasers from taking security interests in homeowner property, acquiring property interests, making misleading statements, charging excessive fees or interest rates, and engaging in unconscionable transactions.

• Establishes civil remedies including actual damages (minimum amount paid to consultant/purchaser), attorney fees, court costs, and punitive damages; criminal penalties of up to 1 year imprisonment or $15,000 fine for violations; 4-year statute of limitations.