Changes to enforcement and servicing of real estate loans advanced

Senators gave first-round approval March 21 to a bill that would restrict local ordinances regarding real estate loans.

Under LB810, introduced by Syracuse Sen. Dan Watermeier, no local ordinance or resolution could interfere with the enforcement and servicing of any real estate loan agreement or any mortgage, deed of trust or other security instrument by which the loan is secured.

The bill would apply to any local ordinance or resolution adopted before, on or after the effective date of the bill.

Local political subdivisions in other parts of the country are passing “intrusive” local ordinances relating to foreclosures, Watermeier said, which could create a complex web of inconsistent regulation.

“LB810 assures that real estate loan agreements will continue to be regulated by state and federal law only,” he said.

A Banking, Commerce and Insurance Committee amendment, adopted 28-0, clarified that the bill would not apply to a local ordinance or resolution related to tax increment financing.

Following the 26-0 adoption of a technical amendment offered by Watermeier, the bill advanced to select file on a 31-0 vote.