Skip to main content

Effort to Rewrite Kentucky Foreclosure Law Fails

Feb 27, 2015

An attempt to rewrite the foreclosure laws in Kentucky has been derailed after a state legislator bowed to pressure and withdrew his bill from the legislative process.

According to a report in The Lexington Herald-Leader, State Rep. Jeff Greer, chairman of Kentucky’s House Banking and Insurance Committee, had introduced the Kentucky Non-Judicial Foreclosure Act with the goal of streamlining the foreclosure process. The 32-page bill would have allowed the creation of a non-judicial foreclosure channel that could have been voluntarily pursued in most cases.

The bill was introduced at the request of the Kentucky Bankers Association, which drafted its original language last fall. Debra Stamper, the trade group’s general counsel, defended the bill as an effort to “expedite the process in cases where everyone wanted things taken care of quickly.”

However, the bill came under criticism from the Kentucky Equal Justice Center, which charged that this proposed law would have given banks an unfair advantage by putting an increased burden on homeowners to defend their efforts to halt foreclosure. Greer withdrew the bill after being charged of favoring lenders over borrowers. The Herald-Leader also noted that Greer accepted approximately $9,400 in political donations last year from individuals and political action committees tied to Kentucky's banking industry.

"My intention was to give some relief to the banking industry, but I had no intention to hurt anybody," Greer said. "I worked with everybody to try and fix this, but in the end, it just couldn't be done in a short session. We couldn't get this written in a way I liked. That's what you get for trying to rush a bill through."

For her part, Stamper dismissed the efforts to halt the bill’s passage as “misinformation” and vowed to introduce similar legislation next year.

About the author
Published
Feb 27, 2015
Co-Founder Mat Grella Terminated From NEXA

NEXA CEO Kortas states negotiations regarding the buyout will continue.

Mar 27, 2024
Comings And Goings At AmeriHome

Chief Operating Officer John Hedlund announced his retirement on Thursday in a LinkedIn post.

Mar 22, 2024
Rocket's Tim Birkmeier To Retire

Birkmeier is bidding farewell after a 28-year career at Rocket Companies.

Mar 21, 2024
How NAR’s Settlement Impacts Homebuying

While the settlement's silver lining is that homes are expected to become more affordable, many uncertainties loom over the housing market.

Mar 19, 2024
NAR Reaches $418 Million Settlement

The association agreed to give home sellers the option of compensating agents.

Mar 15, 2024
U.S. Non-Bank Mortgage Lenders Surge Amid Industry Consolidation, Fitch Ratings Reports

As smaller players exit the market, scaled originators like UWM and PennyMac Financial dominate, but challenges persist with low origination volume and pressured margins amidst rising interest rates.

Mar 14, 2024