February 24, 2009, Introduced by Reps. Johnson, Roy Schmidt, Simpson, Robert Jones, Cushingberry, Slavens, Lisa Brown, Roberts, Corriveau, Scripps, Kennedy, Huckleberry, Haase, Haugh, Liss, Tlaib, Segal, Switalski, Bledsoe, Nerat, Smith, Ebli, Barnett, Melton, Nathan, Miller and Leland and referred to the Committee on Banking and Financial Services.
A bill to amend 1961 PA 236, entitled
"Revised judicature act of 1961,"
(MCL 600.101 to 600.9947) by adding sections 3205c, 3205d, and
3205e; and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3205c. (1) If a borrower has contacted a housing
counselor under section 3205b but the process has not resulted in
an agreement to modify the mortgage loan, the borrower, housing
counselor, mortgage holder, or mortgage servicer shall calculate a
modified payment amount under the FDIC workout program. The
mortgage holder or mortgage servicer shall provide the borrower
with a copy of any calculation made by the mortgage holder or
mortgage servicer under this subsection.
(2) If the results of the calculation under subsection (1) are
that the borrower is eligible for a modification, the mortgage
holder or mortgage servicer shall not foreclose the mortgage under
this chapter but may proceed under chapter 31. If the results of
the calculation under subsection (1) are that the borrower is not
eligible for a modification without an exception, the mortgage
holder or mortgage lender shall foreclose the mortgage under this
chapter.
(3) If a mortgage holder or mortgage servicer begins
foreclosure proceedings under this chapter in violation of this
section, the borrower may file an action in the circuit court for
the county where the mortgaged property is situated to convert the
foreclosure proceeding to a judicial foreclosure. If a borrower
files an action under this section and the court determines that
the borrower participated in the process under section 3205b, a
modification agreement was not reached, and the borrower is
eligible for modification under the FDIC workout program, the court
shall enjoin foreclosure of the mortgage by advertisement and order
that the foreclosure proceed under chapter 31.
Sec. 3205d. The Michigan state housing development authority
shall develop the list of housing counselors approved by the United
States department of housing and urban development or by the
Michigan state housing development authority described in section
3205a(4)(a) who may perform the duties of housing counselor under
sections 3205a to 3205c.
Sec. 3205e. Sections 3205a to 3205d are repealed effective 2
years after the effective date of the amendatory act that added
this section.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 95th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 4453(request no.
02074'09).
(b) Senate Bill No.____ or House Bill No. 4454(request no.
02275'09).