SB 390-1_ Filed 04/05/2007, 14:51
Your Committee on Financial Institutions , to which was referred Senate Bill
390 , has had the same under consideration and begs leave to report the same back to the
House with the recommendation that said bill be amended as follows:
SOURCE: Page 1, line 1; (07)CR039002.1. -->
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
SOURCE: IC 24-5-15-7; (07)CR039002.1. -->
"SECTION 1. IC 24-5-15-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 7. (a) Except as
provided in subsection (d), a
contract between a consumer and a
credit services organization concerning the purchase of the services of
the credit services organization must be in writing, be dated and signed
by both the consumer and the credit services organization, and include
all of the following:
(1) A statement in at least 10 point boldface type in immediate
proximity to the space reserved for the signature of the buyer that
"You, the buyer, may cancel this contract at any time before
midnight of the third business day after the date of the
transaction. See the attached notice of cancellation form for an
explanation of this right.".
(2) The terms and conditions of payment, including the total
amount of all payments to be made by the buyer to the credit
services organization or to another person.
(3) A complete and detailed description of the services to be
performed and the results to be achieved by the credit services
organization for or on behalf of the buyer, including all
guarantees and all promises of full or partial refunds and a list of
the adverse information appearing on the consumer's credit report
that the credit services organization expects to have modified and
the estimated date by which each modification will occur.
(4) The principal business address of the credit services
organization and the name and address of the credit services
organization's agent in Indiana authorized to receive service of
(b) A contract shall be accompanied by two (2) copies of a form
captioned "NOTICE OF CANCELLATION" attached to the contract
and that contains the following statement in at least 10 point boldface
NOTICE OF CANCELLATION
You may cancel this contract, without any penalty or obligation, at any
time before midnight of the third business day after the date the
contract is signed.
If you cancel, any payment made by you under this contract will be
returned within ten days following receipt by the seller of your
cancellation notice, or any other written notice, to
(name of seller)
(address of seller) (place of business)
not later than midnight ____________________________________
"I hereby cancel this transaction". __________________________
(c) A credit services organization shall give a copy of the completed
contract and all other documents required by the credit services
organization to the buyer at the time the contract and the documents are
(d) If a contract is subject to this chapter and to IC 24-5.5,
IC 24-5.5-4 applies to the contract.".
SOURCE: Page 2, line 16; (07)CR039002.2. -->
Page 2, line 16, delete "sale;" and insert " proceeding;
Page 2, line 22, delete "sale." and insert " proceeding.
Page 3, between lines 7 and 8, begin a new paragraph and insert:
" Sec. 7. For purposes of this chapter, a homeowner is "subject
to a foreclosure proceeding" if a person who holds a mortgage or
deed of trust on residential real property owned by the homeowner
has filed a legal action in a court with jurisdiction to foreclose the
mortgage or deed of trust held on the homeowner's residential real
Page 3, line 20, delete "attorney general's office."." and insert
" housing and community development authority.".
Page 3, line 27, delete "tenth" and insert " seventh
Page 3, line 27, delete "any conveyance or" and insert " the
Page 3, line 28, delete "real property." and insert " the interest in
the real property that is the subject of the agreement, as described
in section 4(1) of this chapter.
Page 3, line 38, delete "when" and insert " three (3) days after
Page 4, line 1, before "If" insert " (a)
Page 4, line 2, after "or" insert " a
Page 4, line 3, delete "sixty (60)" and insert " thirty (30)
Page 4, between lines 9 and 10, begin a new paragraph and insert:
" (b) A rescission by a homeowner under this chapter is void if
the payments required under this section are not made within the
time set forth in subsection (a).
Sec. 5. If a homeowner rescinds a contract with a foreclosure
consultant, not less than ten (10) days following the effective date
of the rescission, the consultant shall return to the homeowner any
payments made by the homeowner, less any amounts for actual
Page 4, line 24, delete "A" and insert " In addition to any
prohibitions that apply under IC 24-5-15-1 through IC 24-5-15-8,
Page 4, line 28, delete "perform;" and insert " perform, unless the
foreclosure consultant complies with the security requirements
under IC 24-5-15-8;".
Page 5, line 14, delete "and".
Page 5, line 17, delete "property." and insert " property; and"
(3) foreclosure purchaser complies with the security
requirements under IC 24-5-15-8.".
Page 5, line 25, delete "eighty-two percent (82%)" and insert
" sixty-six percent (66%)".
Page 6, line 15, delete "The attorney general may seek an injunction
to prohibit" and insert " A person who violates this article commits
a deceptive act that is actionable by the attorney general under
IC 24-5-0.5-4 and is subject to the penalties and remedies available
to the attorney general under IC 24-5-0.5.".
Page 6, delete lines 16 through 25.
Page 6, line 26, delete "4." and insert " 2.".
Page 6, line 32, delete "5." and insert " 3.".
Page 6, line 32, delete "4(b)" and insert " 2(b)".
Page 6, line 37, delete "6." and insert " 4.".
Page 6, line 38, after "commits" insert " mortgage rescue
Page 6, line 39, delete "7." and insert " 5.".
Page 6, line 39, delete "attorney general" and insert " Indiana
housing and community development authority".
Page 6, line 40, delete "certified by the Indiana housing and
Page 6, line 41, delete "development authority".
Page 7, line 4, delete "attorney general" and insert " Indiana
housing and community development authority".
Page 7, line 7, delete "8." and insert " 6.".
Page 7, after line 8, begin a new paragraph and insert:
" Sec. 7. This article may not be construed to preempt the
provisions of IC 24-5-15-1 through IC 24-5-15-11.
SOURCE: IC 25-1-11-13; (07)CR039002.3. -->
SECTION 3. IC 25-1-11-13 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 13. (a)
The board may
summarily suspend a practitioner's license for ninety (90) days before
a final adjudication or during the appeals process if the board finds that
a practitioner represents a clear and immediate danger to the public's
health, safety, or property if the practitioner is allowed to continue to
practice. The summary suspension may be renewed upon a hearing
before the board, and each renewal may be for not more than ninety
(b) The board may summarily suspend the license of a real
estate appraiser for ninety (90) days before a final adjudication or
during the appeals process if the board finds that the licensed real
estate license appraiser has engaged in material and intentional
misrepresentations or omissions in the preparation of three (3) or
more written appraisal reports that were submitted by a person to
obtain a loan. The summary suspension may be renewed after a
hearing before the board. Each renewal may be for not more than
ninety (90) days.
(c) Before the board may summarily suspend a license under
this section, the consumer protection division of the office of the
attorney general must make a reasonable attempt to notify a
(1) a hearing by the board to suspend a practitioner's license;
(2) information regarding the allegation against the
The consumer protection division of the office of the attorney
general must also notify the practitioner that the practitioner may
provide a written or an oral statement to the board on the
practitioner's behalf before the board issues an order for summary
suspension. A reasonable attempt to reach the practitioner is made
if the consumer protection division of the office of the attorney
general attempts to reach the practitioner by telephone or facsimile
at the last telephone number of the practitioner on file with the
Renumber all SECTIONS consecutively.
(Reference is to SB 390 as printed February 20, 2007.)
and when so amended that said bill do pass.
CR039002/DI 101 2007