A bill to amend the Consumer Credit Protection Act to prohibit certain practices in the case of second mortgages which secure residential real property.

Summary

Amends the Consumer Credit Protection Act to prohibit certain practices in the case of second mortages which secure residential property including: (1) prepayment of mortgage penalization; (2) foreclosure or seizure of real property under a judgment entered upon warrant of attorney to confess judgment without an opportunity for a judicial hearing; (3) extension of credit to a mortgagor who the creditor knows does not have projected income sufficient to meet the payment schedule; and (4) harassment of the mortgagor in connection with the collection of mortgage payments. Prescribes remedies for such violations. Entitles a mortgagor of a second mortgage to retain funds obtained under the mortgage without obligation to repay on or after the date of violation. Prohibits any real estate broker who has arranged a second mortgage which is secured by residential real property to acquire, directly or indirectly, such property (or proceeds resulting from its disposition) at a foreclosure sale or auction of such property. Imposes a fine of up to $10,000 for such violation.

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1 official file

• Introduced in House

  summary · EN · 17 March 1976

  Open at official source

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