Bill clarifying part of the foreclosure process easily passes House

A statute regarding foreclosures may gain some extra enforcement.

The House passed HF2213 on a 130-0 vote Tuesday. Rep. Melissa Hortman (DFL-Brooklyn Park) sponsors the bill, which moves next to the Senate where Sen. Ron Latz (DFL-St. Louis Park) is the sponsor.

A list of potential issues with a mortgage that could make it invalid under current law is subject to a statute of limitations. The bill would add a statement to law clarifying that, in case of any court decision, the statute of limitations would still apply.

The bill would also make permanent a definition of “small servicer,” a company that services mortgages. Small servicers are exempt from certain loss mitigation and dual tracking requirements specified in law. The term would apply to companies that process less than 125 foreclosure sales in a year. This provision, set to sunset in August of this year, is in addition to the federal definition that applies the term to include servicers who process less than 5,000 foreclosures in a year.

“There is no opposition to the bill,” Hortman said, “and the small community bankers, the credit unions strongly support the bill to make the small servicer exemption permanent.”