Nevada is a step closer to having its own Homeowner Bill of Rights, with the state assembly passing Senate Bill 321 on Friday.
The bill, which previously passed the state Senate, shows Nevada going the way of California by trying to enact legislation that will create foreclosure mediation requirements while setting up civil penalties for banks that fail to follow outlined servicing requirements.
The legislation aims to end dual-tracking – or the pursuit of a loan modification alongside foreclosure processing. It also codifies single-point of contact servicing requirements.
Other provisions include a requirement that 30 days before the recording of a default notice or a commencement of a judicial foreclosure, servicers will provide a homeowner with information about foreclosure prevention alternatives.
Another section prohibits foreclosure proceedings unless a servicer complies with all of the requirements for reaching out to distressed borrowers.
The bill, which was revamped in Assembly, is heading back to the Senate for another round of voting.