After weeks of contentious debate on the proposed foreclosure reform bills, the full House passed an amended package last week that will provide several positive foreclosure process reforms as the financial industry prepares to comply with the CFPB’s 120-day rule in early 2014. The Senate package included SB 380-383, and was referred to the House Financial Services Committee. Last week, the House adopted substitutes to its versions of several of the bills to mirror the Senate-passed legislation. Despite a near-unanimous vote in the Senate, the House hearing still saw intense opposition from consumer interests to SB 383, which originally provided for a blanket reduction of 120 days from the post-foreclosure redemption period but now contains a right of inspection and a right to pursue a cause-based action for summary possession during redemption. Despite opposition, SB 380 and 383 were eventually reported along party lines, along with HB 4765 and 4766. HB 4765 and 4766 were then passed on Thursday night by a vote of 98-9 and 99-8, respectively. Voting against the largely uncontroversial portion of the package were Reps. Theresa Abed, D-Grand Ledge (on HB 4765 only); Rashida Tlaib, D-Detroit; Harvey Santana, D-Detroit; Brian Banks, D-Detroit; Rosemary Robinson, D-Detroit; Fred Durhal, D-Detroit; Alberta Talabi, D-Detroit; and John Olumba, I-Detroit. In the version of the package that is approaching finalization, there are several items to note:
Despite strong bi-partisan support of the Senate bill package, some consumer advocates continue to push against the package in the House and with the Snyder administration. Both chambers are expected to take up the others’ bills during the final week of session before the summer recess, after waiting the constitutionally mandated five-day minimum time period required for passage after transfer from the originating chamber.