Introduced
by
To clarify that mortgage loan contracts that contain “non-recourse loan provisions” cannot be made into a recourse loan by a “post closing solvency covenant" or other device. Practically all residential mortgages are “non-recourse” loans, meaning that although the lender can take back the home, he can’t go after (“have recourse to”) a delinquent borrower’s other property or income of the borrower.
Referred to the Committee on Energy and Technology
