EMERGENCY BANKING REGULATION 5 MORTGAGE FORECLOSURE DISCLOSURE
230-5956 INACTIVE RULE EMERGENCY RULE
| Title | 230 | Department of Business Regulation (includes the Office of the Health Insurance Commissioner) |
| Chapter | XXX | Old Regulations Which Were Not Assigned Chapter-Subchap-Part |
| Subchapter | XX | Old Regulations Which Were Not Assigned Chapter-Subchap-Part |
| Part | 5956 | EMERGENCY BANKING REGULATION 5 MORTGAGE FORECLOSURE DISCLOSURE |
| Type of Filing | Adoption |
| Regulation Status | Inactive |
| Effective | 01/29/2010 to 08/27/2010 |
Regulation Authority:
R.I. Gen. Laws §§ 35-27-3.1, 42-14-17 and 42-35-3.
Purpose and Reason:
The purpose of this Regulation is to promulgate the form of written notice pursuant to R.I. Gen. Laws § 34-27-3.1. The notice implemented by this Regulation informs individual consumer mortgagors of their default, of the mortgagee’s right to foreclose, and the availability of counseling for mortgagors through HUD-approved counseling agencies in Rhode Island. This Regulation also clarifies the Mortgagee’s duties and consequences of its failure to comply with R.I. Gen. Laws § 34-27-3.1 and this Regulation. R.I. Gen. Laws § 34-27-3.1 and this Regulation applies to all entities and individuals subject to regulation and supervision by the Rhode Island Division of Banking (“Division”) as well as to any mortgagee holding a loan secured by residential real estate located in Rhode Island.
Brief statement of Reason for Finding Imminent Peril:
On January 5, 2010, the Rhode Island General Assembly enacted R.I. Gen. Laws § 34-27-3.1 which requires the Department of Business Regulation (“Department”) to promulgate a form of written notice which informs mortgagees of the availability of counseling through no-cost HUD-approved mortgage counseling agencies in Rhode Island. The statute requires that the Department promulgate this notice thirty (30) days prior to the effective date of the statute, which is March 6, 2010. Therefore, the time constraints imposed by the passage date of the statute (January 5, 2010), and the date by which a notice must be promulgated (February 4, 2010) precludes the Department from promulgating this regulation in compliance with the regulatory notice provisions of R.I. Gen. Laws § 42-35-3(a) and necessitates the promulgation of this regulation by emergency regulation pursuant to R.I. Gen. Laws § 42-35-3(b).