BRBNLSSSSATETE ES ew rauevee
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‘Mariel Bowser
ABILL
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
‘To amend, on an emergency basls, An Act To establish a code of law for the District of
“Columbla to require mortgage lenders to provide homcownors with a notice of default on
residential mortgages; and to provide homeowners with the right to engage in mediation
prior to foreclosure on residential mortgages.
BEIT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
act may be cited as the “Saving D.C. Homes from Forectosure Emergency Act of 2010."
Sec2. An Act To establish « code of law for the District of Columbia, spproved. ‘March
4, 1901 (31 Stat. 1189; soatered sections of the District of Columbia Official Code § 42-815), Is
amended as follows:
(©) Section 539 (D.C. Official Code § 42-815) is amended as follows:
(1) Subsection (b) is amended 10 read as follows:
“(p) In the case of a residential mortgage, as a condition of issuance af the notice to
foreclose under subsection (c) of this section, a foreclosure aale under a power of sale
provision contained in any deed of trust, mortgage, o other security instrument, shall not take place unlese the holder of the note secured by the deed of trust, morgage ‘or security
instrument, or its agent, shell:
“(1)(A) Give writen notoe of default on a residential mortgage in such
format and containing such information asthe Mayor shall, by rule, preseibe, by
cortified mail, postage prepaid, retum receipt requested, ‘and by first-class mail, to the
borrower and, if different from the borrower tothe person who holds reoord title, ofthe
sool property encumbered by the deed of trust, mortgage or security instrument at his oF
her last known address.
(8) A copy of the notic roquired by subparagraph (A) ofthis paragraph
shall be sent to the Mayor; and
(@) Obtain « mediation centificate in nocordance with section 539.”
(2) New subsections (o) and (d) are added as follows:
“(ox XA) A foreclosure sale under a power of sale provision contained in any dood of
trust, snorigage or other security instrument shall not take place untes the holder ofthe
note secured by the deed of trust, mortgage, ot security instrument, or its agent gives
‘yritten notice of the intention to foreclose, by certified mai, postage prepaid, rebum
receipt requested, and by first-less mail, of the sale to the borrower and if diferent from
tne borrower, to the person who holds the tite of record, ofthe real property encumbered
by the deed of trust, mortgage, or security instrument at his last known address.
(8) (1) A copy of the notice required by subparagraph (A) of this
paragraph shall be sent to the Mayor, at leest 30 days in advance of the dato of the sale;
(2) The notice shall bein such format and contain such information as the
Mayor shall, by rule, prescribe; 10
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(3) The Mayor shall give written acknowledgment to the holder of the
note, orits agent, on the day that he receives the notice, that the notioe has been received,
indicating the date of receipt of the notice;
(4) The 30-day petiod shall ‘commence to run an the date of receipt of the
dleods of trust shall bein addition to the notioe described by subsection (b) of this section.
4) The modiation certificate required by subsection (B)Q) of this seotion, and the notice
required under subsection (6) ‘ofthis section, shall be recorded in the land records of the
District.”
(Section 539a (a}(D.C. Official Code § 42-815.01(a)) is amended as follows:
«e) For th purposes ofthis act, the term “residential mortgage” means & loan secured by a deed
of trust or mortgage, used to aoquire or refinance real property which is improved by 4 or fewer
single nity dwellings, including condominium oF cooperative uit east one of which is the
principal place of abode of the debtor or his immediate family.”.
(© New sections 539b and 5390 are added to read as follows:
“Seo, 539b.. Foreclosure mediation.
““(@) For the purposes ofthis section, the term:
if different from the
(1) “Borrower” means a residential mortgage borrower and,
residential mortgage borrower, the person who holds record title,
“4@)“Commissione:” means the Commissioner of the Department of Insurance,
‘Securities, and Banking 44) "Lendee” means a residential mortgage lender. ‘The term “jendee” shall include a
trustee.
«(4) Loss Mitigation analysis" means an analysis, perforined by the lender, ofa
borrower's financial condition, using information inthe porrower's loss mitigation application
and any other information available to the ender, to evaluate ‘and recommend options in lieu of
foreclosure available to borrower from lender,
(5) “Mediation” means & meeting between lender or trustee ‘and borrower, with the
help of etal hil pasty ator spoitd byte Matiation Admini i Set 8
each agreement on oss mitigation program fr the borrower, ncuding the renegotiation of the
terms of u borrower's residential mortgage, loan modification, refinancing, short sale, deed in
lien of foreclosure, and any other options that may be aveilable in lieu of foreclosure,
(6) “Mediation Administrator” means an individual designated by the Commissioner
to administer mediation services under this section.
(1) "Moaiation certificate” means a document issued by the ‘Commissioner to « lender
evidencing compliance with the mediation equirements of this act
+(@) "Mediation election form” means a frm, prescribed by ‘the Commissioner, upon
wich the borrower may elect to participate in mediation and cestify compliance with the
endet’s loss mitigation documentation requirements.
(9) “Mediation report means a sumsaary ofthe mediation provided by the mediator to
the Mediation Administrator on a form preseribed by the Commissioner.
(10) “Mortgage” meons alien instrument, including a mortgage oF deed of trust, with
ar eat 2 pares in which he borower ns ilen on eset el propery to ho end
secutity for the repayment of a note or loan, (41) “Notice of defoult on residentia! mortgage” means a notice given purruant fo
section 539(b\1), ie the form thatthe Mayor shalt, by rule, prescribe, which shall contain:
(A) The name and telephone number of the lender,
“(B) The following loan information:
““@) The amount ofthe prineipal balance and outstanding interest owed;
Gi) All past due payments;
“Gii) Penalties;
«jv) The amount required to cure the default and reinstate the loan, including
all past due payments, penalties, and fees; and
(©) Any other information that the Mayor shall, by rule, preseribe.
(12) "Notice of intention to foreclose a residential mortgage” means @ notice given
jpursuunt to section 539(c).
(13) "Power of sale” means the right ofa lender fo selt residential rel propecty after
an uncured default a a public avetion as provided in this uet to repay the note or other obligation
secured by a deed of trust or mortgage.
(14) “Residential mortgage” shall have the same meaning asin section $393(8)-
(15) “Settlement agreement” means ‘the form, prescribed by the Mediation
“Administrator, upon which the terms and conditions of an agreement made pursuant to the
‘mediation are set forth.
(16) “Trusteo" means the person holding « lien on eal property pursuant fo 8
residential mortgage or the assignee for foreclosure ofthe residential mortgage,
«(by Notwithstanding the provisions of any other law, after a notice of defn of residential
rmortgage has been given pursuant to section $39(D)(1, the lender shal engage in mediation if
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the borrower elects uider subsection (c) of this section, Prior to the foreclosure of any
residential mortgage or deed of trust, « lender shall:
(1) Include with the notice of default on a residential mortgage which is mailed to
the borrower pursuant to section 539(0)(1):
(A) Contact information which the borrower may use to reach an agent of
representative of the lender with authority to explain the medistion process;
4B) A statement recommending thatthe borrower seek housing counseling
(C) Contact information for at least one local housing counseling agency
approved by the United States Department of Housing and Urban Development;
(0) () A deacrption ofall loss mitigation programs available from the lender
and applicable to the residential mortgage subject tothe notice of default of a residential
‘mortgage; and
Gi) A description of the eligibility requirements forthe loss mitigation
programs applicable tothe residential mortgage subjet tothe notice of default of aresidential
mortgage for these programs;
1B) () Ae application in the form that Mayor, by rule, shall prescribe, for the
toss mitigation programs available in connection withthe residential mortgage is subject to the
notice of default of a residential mortgage; and
“4Gi) Instructions for completing and railing the loss mitigation
application, with one envelope addressed to the lender;
(B) A mediation election form, ina form prescribed by the Medion
“Administrator, with one envelope addressed to the lender, and one envelope addressed to the
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Mediation Administrator, and
(2) Provide a copy of th notice of default on a residential mortgage '9 the
‘Mediation Administrator in accordanes with the rules issued pursuant 19 subsection (i of this
section.
4) (1) No later than 7 days afer the date ofthe mailing of the form required by subsection (b)
ofthis sntion, the Mediation Adminstretor shall mall the following fo tho borrower:
“(AY A stotement that the borrower is subject to foreclosure and must ake immediate
action to avoid foreclosure;
14) A statement that the borrower is eligible to participate in foreclosure mediation;
«(€) Tho contact information forthe Mediation Administrator und a staternent
instructing thatthe borrower should immediately contact the Mediation Administrator to obtain
additional information;
«(B) A statement recommending that borrower seek housing counseling services;
+f) Contac information frat least one loa housing counseling agenoy approved
‘by the United States Department of Housing and Urban Development;
44) A stetement recommending that borrower review the mediation lection form
‘and the loss mitigation application provided by lender,
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