Bill Summary: HF2822

• Establishes a mandatory process for mortgage lenders to offer loan modifications before initiating foreclosure on residential mortgages (1-4 family units with owner-occupancy).

• Requires lenders to send loan modification notices, make six telephone contact attempts within 50 days, and record an affidavit of compliance before foreclosure can commence.

• Mortgagors have 60 days to submit a completed loan modification application; lenders must issue eligibility determination within 30 days of receipt and provide 30 days for appeal of ineligibility decisions.

• Lenders must publish net present value (NPV) formulas used for eligibility determinations on their websites and retain applicant data for three years upon request.

• Violating lenders face up to $2,000 per violation in statutory damages, plus actual damages, punitive damages in certain cases, injunctive relief, and attorney fees for prevailing mortgagors; effective 60 days after enactment.