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.
Referred to the Committee on Economic Development
Reported without amendment
With the recommendation that the bill pass.
Amendment offered
To clarify that the bill provisions affect existing "non-recourse" loans as well as future ones, and make other technical changes.
The amendment passed by voice vote
Passed in the Senate 33 to 5 (details)
Referred to the Committee on Commerce
Reported without amendment
Without amendment and with the recommendation that the bill pass.
Passed in the House 97 to 12 (details)
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.
