SF2472 Summary

• Establishes a new mortgage loan modification process requiring lenders to provide notice of modification availability and evaluate applications before commencing foreclosure on residential mortgages.

• Mandates lenders record an affidavit of compliance before initiating foreclosure proceedings, certifying they have met all requirements including notifying borrowers of loan modification options.

• Requires lenders to make six telephone contact attempts to inform borrowers of modification eligibility within 50 days of sending notice, with calls made only during business hours by live representatives.

• Establishes a 60-day application deadline for borrowers to submit loan modification requests, with lenders required to issue a determination of eligibility within 30 days of receiving a completed application.

• Creates liability for lenders who violate the law, including actual damages, statutory damages up to $2,000 per violation, punitive damages, and attorney fees for prevailing borrowers; allows enforcement by the attorney general and commerce commissioner.