Rep. Hollis introduces bill to allow biweekly mortgage payments; HB55 sent to subcommittee

Representative Hollis introduced HB55, saying the bill "would require financial institutions to allow mortgagors to make mortgage payments biweekly or semimonthly and also enable them to make additional payments toward the mortgage principal without a penalty." The committee voted by voice to refer the measure to a subcommittee for further consideration.

The bill is designed to give homeowners more flexibility in structuring mortgage payments and to potentially reduce interest costs if borrowers can pay principal earlier. Hollis told the committee she wants constituents to have "more options for structuring and paying off their mortgages effectively" and said she was open to feedback from financial institutions about particular provisions.

Committee leaders agreed to place HB55 in Representative Witt’s subcommittee. The clerk read the subcommittee membership as Representative Witt (chair), Representative McClammy, Representative Insler, Representative Sorrells, Representative Paramore and Representative Lomax. Members on the floor urged Witt to move quickly so the bill did not arrive late in the session.

The committee did not take a final vote on the bill itself; instead, members approved the referral so the subcommittee can hear testimony, consider suggested edits from financial institutions, and propose amendments or a recommendation back to the full committee.

Next steps: HB55 will be scheduled for the subcommittee chaired by Representative Witt for detailed review and possible amendment. No formal implementation date or fiscal impact estimate was provided during the committee meeting.