Notice of Home Loan Modification & Servicer Honor Terms Becomes Law in Colorado

On March 15th, Governor John Hickenlooper signed into law and enacted HB 1017: Notice of Home Loan Mod & Servicer Honor Terms.  The now enacted law sponsored by Rep. Steve Lebsock (D-34) addresses a situation where a servicer is working with a homeowner on a loan modification, but the loan is then transferred to a new servicer.   The bill requires that the original loan servicer notify a successor loan servicer of the terms of the offer upon transfer of the servicing rights.  The successor servicer shall then be required to honor the terms of the modification that was previously agreed upon.   The Association had worked with the sponsor prior to the bill being introduced, and remained neutral on the bill based upon credit union feedback.  The full text of law can be found here.