MS HB563

Requires lenders to provide written notice to borrowers at least 90 days before foreclosing on a principal residence mortgage, including contact information for a designated modification officer and approved housing counselors.

Allows borrowers to request a meeting with the lender within 14 days of receiving notice to negotiate a loan modification, which pauses foreclosure proceedings for 90 days from the notice date.

Establishes loan modification criteria targeting a maximum housing debt-to-income ratio of 38%, achievable through interest rate reductions (minimum 3%), extended amortization periods (up to 40 years), principal deferral (up to 20%), or fee reductions.

Prohibits foreclosure by advertisement if the borrower qualifies for a modification under the criteria, requiring judicial foreclosure instead; permits advertisement foreclosure only if the lender formally offers a modification and the borrower fails to execute within 14 days.

Applies only to mortgages where the first notice of foreclosure sale is published on or after July 1, 2018, and exempts mortgages held by the Mississippi Home Corporation.