05 Aug Colorado and Illinois Legislative Update
The Colorado legislature recently amended its laws governing foreclosure sales, effective September 1, 2015. The Illinois legislature recently amended its High Risk Home Loan Act, effective July 28, 2015, and the Residential Mortgage License Act, effective July 23, 2015.
COLORADO HOUSE BILL 15-1142
A public trustee may collect a fee of no more than $60 for the cost of conducting a public foreclosure sale by means of the internet or another electronic medium.
“Electronic Transfer” means a transfer of funds initiated by using an electronic terminal, telephonic instrument, or computer or magnetic tape to order or authorize a financial institution to credit or debit an account. Electronic Transfer payments do not include transactions originated by check, draft, or similar paper instrument.
If the foreclosure sale is conducted by means of the Internet or another electronic medium, the combined notices required to be mailed must contain:
· The electronic address;
· The location of computer workstations that are available to the public and information about how to obtain instructions on accessing the sale and submitting bids; and
· A statement that the bidding rules for the sale will be posted on the Internet or other electronic medium used to conduct the sale at least two weeks before the date of sale.
The holder of the evidence of debt or the attorney for the holder must submit a bid setting forth the holder’s initial bid for the property that is received by the officer no later than 12 noon on the second business day prior to the date of sale. In addition, if the sale will be conducted electronically, the holder may also include a maximum bid for the property. If the sale will be conducted electronically and the holder has elected to include a maximum bid, the bid must be increased electronically in increments incorporated in the electronic program used by the officer to conduct the electronic sale up to such maximum bid if one or more third parties submit competing bids for the property.
The county, the officer, and employees of the county or the officer, acting in their official capacities in preparing, conducting, and executing a sale by means of the Internet or another electronic medium, are not liable for the failure of a device that prevents a person from participating in a sale.
“Device” includes any computer hardware, computer network, computer software application, or website.
At a sale, the officer must read only the public trustee’s sale number for a sale by the public trustee or the court case number for a sale by the sheriff, the name of the original grantor, the street address or, if none, the legal description of the property, the name of the holder of the evidence of debt, the date of sale, the first and last publication dates of the combined notice, and the amount of the bid and the name of the person that submitted the bid. In lieu of reading the information listed above, the officer may post the information at the location of the sale, provide a written copy of the information to all persons present at the sale, or post the information on the Internet or other electronic medium if the sale is conducted by means of the Internet or another electronic medium.
The officer must not require the use of an electronic format for any purpose except as necessary for sales conducted by means of the Internet or another electronic medium.
ILLINOIS HOUSE BILL 2627
The Illinois legislature recently amended its High Risk Home Loan Act to address mortgage transactions secured by a dwelling that is personal property.
If a transaction is secured by a consumer’s principal dwelling and such dwelling is personal property, then the transaction will be considered a high risk home loan if it meets the criteria set forth in the definition of a high cost mortgage as provided in the federal Consumer Credit Protection Act.
ILLINOIS HOUSE BILL 2814
The Illinois legislature recently amended its Residential Mortgage License Act (“Act”) to provide that a mortgage loan brokered, funded, originated, serviced, or purchased by a party who is not licensed under the Act is not invalid solely on the basis of a violation of the Act’s licensing requirements.