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General Assembly Raised Bill No. 7388
January Session, 2019
LCO No. 6308
Referred to Committee on JUDICIARY
Introduced by:
(JUD)
AN ACT PROTECTING A MORTGAGOR FROM AN UNREASONABLE
INVASION OF HIS OR HER PRIVACY BY A MORT GAGE HOLDER.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective October 1, 2019) (a) As used in this 1
section: 2
(1) "Mortgage" means a mortgage deed, deed of trust or other 3
equivalent consensual security interest on residential real property 4
securing a loan made primarily for personal, family or household 5
purposes that is first in priority over any other mortgages or liens 6
encumbering the residential real property, except those liens that are 7
given priority over a mortgage pursuant to state or federal law; 8
(2) "Mortgagee" means the owner or servicer of the debt secured by 9
a mortgage; 10
(3) "Mortgagor" means the owner-occupant of residential real 11
property located in this state who is also the borrower under the loan 12
that is secured by a mortgage and includes the heirs or assigns of the 13
mortgagor; and 14 Raised Bill No. 7388
LCO No. 6308 2 of 2
(4) "Residential real property" means a one-to-four-family dwelling 15
occupied as a residence by a mortgagor. 16
(b) No property preservation clause set forth in any mortgage 17
permitting the mortgagee the right to secure, preserve or protect the 18
residential real property shall be construed as to permit the mortgagee, 19
or any agent, employee or representative of the mortgagee to enter 20
upon the residential real property without the permission of the 21
owner, occupant or mortgagor or an order of a court. 22
(c) No mortgagee or any agent, employee or representative of the 23
mortgagee shall enter upon the residential real property secured by the 24
mortgage without the permission of the owner, occupant or mortgagor 25
or an order of a court. 26
(d) On and after October 1, 2019, no mortgagee shall require a 27
mortgagor, as a condition of obtaining a loan, to agree that a 28
mortgagee, or assignee of such mortgagee, has any right to enter the 29
residential real property secured by the mortgage without the 30
permission of the owner, occupant or mortgagor or an order of a court. 31
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2019 New section
Statement of Purpose:
To ensure that a mortgagee does not enter upon the residential real
property that is the subject of the mortgage without the permission of
the owner, occupant or mortgagor or an order of a court.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
not underlined.]