The amendment would roll back a set of emergency regulations issued by Attorney General John Kroger last month. The rules brought mortgage servicers under the purview of the Oregon Unlawful Trade Practices Act, which gives homeowners another weapon in court and the right to recover attorneys’ fees if they win.

It would also retroactively validate the Mortgage Electronic Registration Systems Inc., a company the mortgage industry uses to avoid recording requirements each time a securitized loan changed hands. Some courts in Oregon have said foreclosures involving MERS were improper and violate state law while others have upheld the system.


House proposal would weaken Senate foreclosure protection bills, validate MERS

A foreclosure protection measure that passed with broad support in the Oregon Senate last week could be watered down by an amendment floated late Monday in the House.

Changes proposed by Republican leaders to Senate Bill 1552 would do away with the requirement that banks meet with borrowers in mediation if the borrower requests it.

The amendment would make mediation voluntary, and it would ease some legal hurdles for foreclosing. It would allocate money for the mediation services, as well as counseling and other assistance for homeowners.

Rest here…