§ 34-25.2-7. Assignee liability.
(a) Any person who purchases or is otherwise assigned a high-cost home loan shall be subject
to all affirmative claims and any defenses with respect to the loan that the borrower
could assert against the original creditor of the loan; provided, that this section
shall not apply if the purchaser or assignee demonstrates by a preponderance of the
evidence that it:
(1) Has in place at the time of the purchase or assignment of the subject loans, policies
that expressly prohibit its purchase or acceptance of assignment of any high-cost
home loans;
(2) Requires by contract that a seller or assignor of home loans to the purchaser or assignee
represents and warrants to the purchaser or assignee that either: (a) the seller or
assignor will not sell or assign any high-cost home loans to the purchaser or assignee;
or (b) that such seller or assignor is a beneficiary of a representation and warranty
from a previous seller or assignor to that effect; and
(3) Exercises reasonable due diligence at the time of purchase or assignment of high-cost
home loans or within a reasonable period of time after the purchase or assignment
of such high-cost home loans, intended by the purchaser or assignee to prevent the
purchaser or assignee from purchasing or taking assignment of any high-cost home loans;
provided, further, that reasonable due diligence shall provide for sampling and shall
not require loan-by-loan review.
(b) In the event that a purchaser or assignee does not prevail under subsection (a), any
recovery by a borrower, under this section, shall be limited to amounts required to
reduce or extinguish the borrower's liability under the high-cost home loan plus amounts
required to recover costs, including reasonable attorneys' fees. Any such claim asserted
by a borrower against a subsequent holder or assignee of the high-cost home loan may
be asserted by a borrower acting only in an individual capacity and must be asserted
as follows:
(1) Within five (5) years of the closing of a high-cost home loan, a violation of this
act in connection with the loan as an original action; and
(2) At any time during the term of a high-cost home loan, after an action to collect on
the high-cost home loan or foreclose on the collateral securing the high-cost home
loan has been initiated or the debt arising from the high-cost home loan has been
accelerated or the high-cost home loan has become sixty (60) days in default, any
defense, claim or counterclaim, or action to enjoin foreclosure or preserve or obtain
possession of the home that secures the loan.
(c) The provisions of this section shall be effective notwithstanding any other provision
of law; provided, that nothing in this section shall be construed to limit the substantive
rights, remedies or procedural rights available to a borrower against any creditor,
assignee or holder under any other law.