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_____________________________ Councilmember Muriel Bowser

A RESOLUTION ____________ IN THE COUNCIL OF THE DISTRICT OF COLUMBIA ________________

To declare the existence of an emergency with respect to the need to amend the Saving D.C. Homes from Foreclosure Amendment Act of 2010 to provide that a borrower shall have the same rights for a defective Notice of Default on Residential Mortgage as the law provides for a defective Notice of Intention to Foreclose on a Residential Mortgage, that a foreclosure sale shall be void if a lender files a Notice of Intention to Foreclose on a Residential Mortgage without a mediation certificate, and to amend the definition for the residential mortgage. RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this resolution may be cited as the Saving D.C. Homes from Foreclosure Emergency Declaration Resolution of 2011. Sec. 2. (a) On November 9, 2010, the Council enacted the Saving D.C. Homes from Foreclosure Emergency Amendment Act of 2010 (D.C. Act 18-599). On November 23, 2010, the Council passed B18-691 the Saving D.C. Homes from Foreclosure Amendment Act of 2010 which became effective on March 12, 2011. (D.C. Law 18-314). (b) The law requires the Department of Insurance, Securities and Banking (DISB) to promulgate rules for the implementation of a foreclosure mediation program which DISB has done. However, current language in the Act making subsequent sale in violation of the law void is deemed too broad. (c) A number of stakeholders, including title insurers, objected to the broad sweep of the Act and expressed concerns that, without changes, they would no

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longer underwrite title for foreclosed residential property. This concern was even the subject of an article in the Washington Post last Friday, July 8th. (d) DISB, in consultation with the various stakeholders, has recommended language to narrow the applicability of the Act to the person who ignores the law and attempts to foreclose without a mediation certificate. (e) Also, the Bill provides clarification regarding what constitutes a residential mortgage. (f) As presently enacted, the Act defines a residential mortgage as a loan secured by a deed of trust or mortgage, used to acquire or refinance real property which is improved by 4 or fewer single-family dwellings, including condominium or cooperative units, at least one of which is the principal place of abode of the debtor or his immediate family. This definition does not provide lenders and the title insurance industry with a sufficient framework which would allow them to determine when a residential property is actually owner-occupied. (g) The clarification would provide that all properties that are residential (4 units or less) would be subject to mediation and will result in all residential properties having a mediation certificate. Sec. 3. The Council of the District of Columbia determines that the circumstances enumerated in section 2 constitute emergency circumstances making it necessary that the Saving D.C. Homes from Foreclosure Amendment Act of 2011 be adopted after a single reading. Sec. 4. This resolution shall take effect immediately.