S.B. No. 14 Summary

• Requires registration of residential mortgage servicers with the superintendent of financial institutions; applicants must pay a $200 investigation fee and $1,000 annual registration fee and designate an operations manager with at least 3 years' experience in mortgage, collections, servicing, or lending.

• Establishes net worth requirements ($250,000 minimum) and bonding requirements for servicers, with corporate surety bonds of $250,000 base penal sum for the first location plus $10,000 for each additional location.

• Prohibits servicers from engaging in unregistered servicing activities, collecting unauthorized fees, making false statements, initiating foreclosures without proof of ownership, or engaging in unfair debt collection practices; violations result in forfeiture of interest and charges.

• Creates civil enforcement mechanisms including superintendent authority to revoke registrations, impose fines up to $1,000 per day of violation, seek injunctions, and cease and desist orders; borrowers may recover damages including improper charges, attorney's fees, and punitive damages.

• Establishes criminal penalties: felony of the fifth degree for unauthorized servicing or making false statements on servicing documents; felony of the fourth degree for obstruction of superintendent examination or investigation.