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Senate adopts House amendments to mortgage‑servicing bill clarifying payment crediting and servicer liability
Summary
Senate concurred with House amendments to Senate Bill 37 (Mortgage Lending and Servicing Act), clarifying that organizations must credit payments 'as of the date received or by the next banking day' and that servicers who assume loans remain subject to compliance provisions; the Senate voted to concur and returned the bill to the House.
Senate Bill 37, the Mortgage Lending and Servicing Act carried on the floor by Senator Lane Beatty, came to the chamber with House amendments intended to clarify who must comply with servicing requirements and how payments must be credited to borrowers' accounts.
Senator Beatty read the amendment language that aligns disclosure/filing practice with IRS Form 990 analogs and — on servicing — clarified that "the lender and any subsequent servicer of the loan shall comply with the requirements" so obligations follow transfers of servicing rights. He also read an operational amendment on payment processing: a lender or servicer "must credit to the mortgage account any payment received as of the date it was received or by the next banking day, unless the payment is insufficient..." The sponsor characterized these as clarifications to avoid disputes about timely crediting and to ensure servicer responsibility when loans are sold.
The Senate moved to concur with the House amendments, took a final roll‑call and reported that the bill showed 25 ayes, no nays, 4 absent and was returned to the House for further action.
