1.1    .................... moves to amend H.F. No. 3612, the first engrossment, as follows:
1.2Page 1, delete lines 21 and 22 and insert:
1.3    "Subd. 6. Eligible foreclosed loan. "Eligible foreclosed loan" means a residential
1.4mortgage loan for which a foreclosing lender has scheduled a foreclosure sale under
1.5chapter 580 or 581 or schedules a foreclosure sale during the deferment period"
1.6Page 2, line 7, after the period insert "A borrower does not reside at the property
1.7unless the property has been the borrower's primary residence for six months prior to the
1.8date of the affidavit of deferment."
1.9Page 2, line 14, after "rate."" insert "For purposes of sections 583.33 to 583.40,
1.10"subprime loan" does not include a subprime loan originated by a state or federally
1.11chartered bank, savings bank, credit union, or an organization majority owned by one
1.12or more credit unions."
1.13Page 2, delete lines 15 to 17
1.14Page 2, line 24, before the period insert ", unless the lender has served a notice of
1.15denial in accordance with section 583.38. A lender is not required to rescind notice of a
1.16foreclosure sale if a borrower has previously obtained a deferment under this act"
1.17Page 2, line 29, after "premises" insert ", if the same are actually occupied,"
1.18Page 3, line 5, before the comma insert "as my primary residence for six months
1.19prior to the date of this affidavit; (5) If permitted to reside at the subject property"
1.20Page 3, line 7, delete "(5)" and insert "(6)"
1.21Page 3, delete lines 13 to 22 and insert:
1.22    "Subd. 2. Service on foreclosing lender. An affidavit of deferment shall be served
1.23by personal service, United States mail, or other reliable delivery service to the address
1.24provided in the notice of deferment or to the address of the counsel for the mortgagee in
1.25the notice of foreclosure."
1.26Page 3, delete lines 23 to 25 and insert:
2.1    "Subd. 3. Acknowledgment by foreclosing lender. Unless the foreclosing lender
2.2has served a notice of denial under section 583.38, the foreclosing lender shall, within
2.3ten days of receiving the affidavit of deferment, provide to the eligible foreclosed
2.4borrower a written acknowledgment that it has received the affidavit of deferment. The
2.5acknowledgment shall state the following:"
2.6Page 4, line 13, delete "would" and insert "shall"
2.7Page 4, line 13, after the second "payment" insert "of principal and interest"
2.8Page 4, line 14, after "payment" insert "of principal and interest"
2.9Page 4, line 17, delete "For"
2.10Page 4, delete line 18
2.11Page 4, line 33, after the period insert "By the end of the deferment period, you will
2.12need to pay the entire amount that has been deferred plus other costs allowed by law in
2.13order to avoid a foreclosure sale."
2.14Page 5, after line 3, insert:
2.15    "Subd. 5. Borrower residency requirement. An eligible foreclosed borrower loses
2.16the right to deferment if the borrower ceases to reside at the mortgaged property during
2.17the deferment period."
2.18Page 5, line 11, after the period insert "The notice is effective upon mailing."
2.19Page 5, after line 19 insert:
2.20    "Subd. 3. Effect of deferral right. Nothing in this act shall alter contractual
2.21rights of the parties to the mortgage loan other than providing the right to defer the
2.22foreclosure sale. A bona fide purchaser of an interest in real property mortgaged by an
2.23eligible foreclosed loan takes the interest in the real property not subject to any claims of
2.24ownership by a party based on any rights under this act. Execution by the sheriff of the
2.25sheriff's certificate of sale is prima facie evidence of compliance with this act, provided
2.26that an eligible foreclosed homeowner has the remedies for monetary relief under section
2.27583.40 for a reckless or bad faith violation of the act."
2.28Page 5, line 26, delete "The terms"
2.29Page 5, delete lines 27 to 33 and insert "No notice is required for a foreclosure
2.30commenced on or before the effective date of this section."
2.31Page 6, delete lines 14 and 15 and insert "you, contact the Minnesota Home
2.32Ownership Center at 651-659-9336 or 866-462-6466 or www.hocmn.org."
2.33Page 6, line 24, delete "the day" and insert "seven days"