District of Columbia Enacts Emergency Bill to Enhance Foreclosure Protections


On October 26, the District of Columbia enacted, on an emergency basis, Bill 914, which extends to borrowers that receive a defective notice of default on a residential mortgage the same protections that apply with regard to a defective notice of intention to foreclose. The bill also (i) provides that a foreclosure sale is void if a lender files a notice of intention to foreclose without a mediation certificate, (ii) revises the definition of residential mortgage, and (iii) creates a Foreclosure Mediation Fund to collect the proceeds from the mediation program and the national servicing settlement completed earlier this year. Those proceeds can be used for specified purposes, including financial fraud and consumer protection enforcement and certain borrower outreach and assistance. The bill was made retroactively effective to September 13, 2012, and expires on January 24, 2013.


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