STATEHOUSE -The House Financial Institutions Committee passed several mortgage and foreclosure bills out of committee Wednesday with some help from the committee's ranking minority member, Rep. Woody Burton (R-Greenwood). "The Committee of Financial Institutions was able to accomplish a lot today, especially when meeting for the last time before the House and Senate switch bills," said Rep. Burton. "The overall goal of the committee is to review policies impacting the mortgage, real estate and banking industries in order to better serve Hoosiers." The committee heard these bills Wednesday: # House Bill 1408, authored by Rep. Scott Reske (D-Pendleton) prohibits a creditor or loan broker from recommending or issuing a residential mortgage loan to a borrower without first making a good-faith inquiry into the borrower's ability to repay the loan at the loan's full monthly cost. House Bill 1408 passed out of committee with 8-0 vote. # House Bill 1633, authored by Rep. Jeb Bardon (D-Indianapolis) provides that in the case of a residential mortgage transaction in which the debtor defaults after June 30, 2009, the creditor shall provide a written notice to the debtor that informs him of the default and offers him the opportunity to participate in a conference with the creditor to negotiate a foreclosure prevention agreement. House Bill 1633 passed with a party line vote of 6-4. # House Bill 1646, authored by Rep. Burton, requires mortgage loan originators and principal managers to be licensed, rather than registered, by the securities commissioner. The bill also requires licensed mortgage loan operators, principal managers and individuals associated with licensed loan brokers to submit fingerprints to the commissioner every three years for use in criminal history background checks. Finally, House Bill 1646 requires mortgage loan operators or principal applicants to take a written examination and renew his or her license annually, instead of biannually. The bill passed out of committee with a 9-0 vote. Once a bill has been approved by a committee, legislators receive a copy of it at least two days before its second reading on the House floor. The author or any legislator can try to amend, or change, the bill, but a majority vote is required to approve an amendment. At this stage, the full House will vote to approve or defeat the bill. The deadline for second readings in the House is Feb. 24, and the deadline for third and final readings is the next day. Rep. Burton encourages his constituents to contact him by phone at 1-800-382-9841, by e-mail at h58@iga.in.gov or by writing him at the Statehouse, 200 W. Washington St., Indianapolis, IN 46204. -30-
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