Rhode Island Regulatory Update

Rhode Island Regulatory Update

The Rhode Island Department of Business Regulation recently amended Banking Regulation 5, related to Mortgage Foreclosure, effective October 1, 2015.

 

RHODE ISLAND BANKING REGULATION 5

 

The existing regulation and Appendices have been amended as follows:  All current forms are available on the Department’s website at:http://www.dbr.state.ri.us/documents/rules/banking_securities/Regulation5.pdf.

 

“Notice of Mediation Conference” means Form 34-27-3.2 or a form substantially similar sent to the Mortgagor of the property in the foreclosure proceedings when a Mortgage is not more than 120 days delinquent or, if applicable, within 60 days after the date upon which the loan is released from the protection of the automatic stay in a bankruptcy proceeding, or any similar injunctive order issued by a state or federal court or, if applicable, within 60 days after the date upon which the loan is released from protections of the Servicemembers Civil Relief Act.

 

Appendix B / Form 34-27-3.2 (in English, Spanish and Portuguese) has been amended to make the following two changes:

·                    To advise that the mediation conference must be scheduled within 60 days of the receipt of a completed Appendix B by the mediation coordinator (previously, the conference had to take place within 60 days of the mailing date of Appendix B); and

·                    To include the date of release from protections under the Servicemembers Civil Relief Act, if applicable.

 

The title of Appendix C has been amended to read “Certificate of Compliance with Mediation Requirement” (previously Certificate Authorizing Foreclosure).

 

Certain mortgages are exempt from the provisions of this regulation (for which mortgagees may submit Appendix D as evidence of compliance with the Rhode Island laws.  The first exemption is amended to read:  “Mortgages on which the date of default under the mortgage is on or before May 16, 2013” (to reflect the revised statutory wording).

 

Technical amendments were made to Appendix D/Affidavit of Exemption from Compliance with R.I. Gen. Laws § 34-27-3.2(m) to make the language consistent with the statute implementing the regulation along with other changes.  The changes are as follows:

·                    To change “holder of mortgage” to be “Mortgagee”;

·                    To include an exemption for a mortgage that is not a first lien;

·                    To correct the incorrect citation to subsection (m) to be subsection (l); and

·                    To remove the year “2013” from the notary jurat.