HF 2615

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 02/18/2010 11:19am

A bill for an act
relating to real estate; streamlining the process of connecting an owner facing
a residential mortgage foreclosure with an authorized foreclosure prevention
agency and with a person authorized to negotiate on behalf of the foreclosing
lender; amending Minnesota Statutes 2008, section 580.021, subdivision 3;
repealing Minnesota Statutes 2008, sections 580.021, subdivision 4; 580.022,
subdivision 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 580.021, subdivision 3, is amended to read:

Subd. 3.

Notification to authorized counseling agency.

The party entitled
to foreclose shall, within one week deleted text begin of deleted text end new text begin after new text end sending the notice prescribed in section
580.022, provide deleted text begin to the appropriate authorized foreclosure prevention agency deleted text end new text begin the
following information to the appropriate authorized foreclosure prevention agency in a
nonproprietary database or spreadsheet format, when available in that format. Electronic
transmittal of the database must occur by secure e-mail which is encrypted by the sender
to prevent persons other than the intended recipient from reading its content, unless
the party entitled to foreclose does not have the capability to send via secure e-mail or
in a nonproprietary database or spreadsheet format, in which case it must be sent by
regular mail. The information must include new text end the mortgagor's name, new text begin mailing new text end address, deleted text begin and deleted text end
most recent known new text begin daytime and evening new text end telephone deleted text begin number deleted text end new text begin numbers, any known e-mail
address, and the address of the property at risk of foreclosure if different from mortgagor's
mailing address new text end .

new text begin In the same communication, the mortgagee shall also provide the name and contact
information of the agent of the mortgagee authorized to discuss and negotiate resolution
of the default. The mortgagee contact information must include the agent's name, mail
and e-mail addresses, and direct phone and fax numbers. The contact information must
also include the name, direct phone number, and e-mail address of the loss mitigation
department manager or in the absence of a loss mitigation department, an individual
authorized to discuss workout options. The agent must be an individual authorized by the
mortgagee to:
new text end

new text begin (1) discuss the terms of the mortgage with the authorized foreclosure prevention
agency or the mortgagor; and
new text end

new text begin (2) negotiate any resolution of the mortgagor's default.
new text end

new text begin Nothing in this subdivision requires a mortgagee to reach a resolution relating to
the mortgagor's default. Failure to provide all the data required by this section or to
provide the data in database or spreadsheet format, or by secure e-mail or otherwise, does
not invalidate the sale; provided the mortgagee makes a good faith effort to provide the
data, or makes a bona fide error.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2010, and applies to
foreclosures in which the notice required under Minnesota Statutes, section 580.021,
subdivision 2, is provided on or after that date.
new text end

Sec. 2. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 580.021, subdivision 4; and 580.022, subdivision
2, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2010, and applies to
foreclosures in which the notice required under Minnesota Statutes, section 580.021,
subdivision 2, is provided on or after that date.
new text end