Senate Bill 1090

<i>Requires creditor to make and mortgage broker to provide services related to home loan only if creditor and mortgage broker reasonably believe that borrower can make scheduled loan payments, tax payments and insurance payments related to home loan. Sets standards for forming reasonable belief. Prohibits certain lending practices, charges and payments and requires disclosure of terms and costs of home loan. Specifies creditor's and mortgage broker's duties and standards of care with respect to borrower.</i>] <b>Requires lender to ensure that subprime mortgage or nontraditional mortgage that lender offers is consistent with prudent lending practices. Specifies requirements for prudent lending practices. Requires lender to analyze borrower's ability to make regularly scheduled payments under certain conditions. Requires mortgage that lender approves to include terms consistent with lender's analysis and provisions for managing risks. Prohibits lender from ceding required analysis, qualification decision or underwriting duty to third party with business objectives that differ from lender's. Creates rebuttable presumption that lender's use of qualified automated underwriting system constitutes compliance with required underwriting standards. Requires lender to establish and follow written policies that comply with underwriting requirements set forth in Act. <b>Requires lender to have evidence of borrower's ability to repay mortgage if lender qualifies borrower with reduced documentation or mortgage includes combination of certain risks. Specifies conditions under which lender may charge prepayment penalty. Specifies disclosures lender must make to borrower. Prohibits lender from interpreting or complying with Act to evade obligations under federal law.</b> Provides <b>rulemaking, investigation and</b> enforcement powers to Director of Department of Consumer and Business Services <i>and Attorney General. Provides for private right of action</i>]. <i>Becomes operative 90 days after effective date of Act.</i>] Declares emergency, effective on passage.

In the Senate

• Ben Westlund

  Sponsor

• Senate committee amendmentAdopted

  Adopted Feb 13

l9n doesn't hold this bill's text yet.

In the Senate Feb 4 – Feb 22

1. Feb 4Introduced
2. Sent to Commerce and Labor
3. Feb 8Heard in Commerce and Labor
4. Feb 11Heard in Commerce and Labor
5. Feb 13Commerce and Labor recommended it as amended, and that it go to Ways and Means
6. Sent to Ways and Means
7. Feb 22Died when the session ended