SB 390-1_ Filed 04/05/2007, 14:51
Adopted 4/5/2007


Text Box

Adopted Rejected


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COMMITTEE REPORT

            
                                                        YES:

7

                                                        NO:
0

MR. SPEAKER:

    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 reads:
            "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 process.
    (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 type:
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 ____________________________________
                (date)
"I hereby cancel this transaction". __________________________
                (date)
________________________________________________________
(buyer's signature)

    (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

signed.
     (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 property.".
    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 homeowner's".
    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 services rendered.".
    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, a".
    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 protection fraud,".
    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 community".
    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 (90) days.
     (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 practitioner of:
        (1) a hearing by the board to suspend a practitioner's license; and
        (2) information regarding the allegation against the practitioner.
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 board.
".
    Renumber all SECTIONS consecutively.
    (Reference is to SB 390 as printed February 20, 2007.)

and when so amended that said bill do pass.

__________________________________

Representative Bardon


CR039002/DI 101    2007