BILL NUMBER: AB 919	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 22, 2009
	AMENDED IN ASSEMBLY  JUNE 1, 2009
	AMENDED IN ASSEMBLY  APRIL 13, 2009

INTRODUCED BY   Assembly Member Nava

                        FEBRUARY 26, 2009

   An act to add Section 2948.2 to the Civil Code,   and to amend
Section 27288.1 of the Government Code,   relating to
mortgages.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 919, as amended, Nava. Mortgages: information and recordation.
   Upon a breach of the obligation of a mortgage or transfer of an
interest in property, in order to exercise a power of sale, existing
law requires the trustee, mortgagee, or beneficiary to record in the
office of the county recorder in the county where the mortgaged or
trust property is situated, a notice of default. Existing law
provides a form for a mortgage of real property. Existing law
requires a county recorder, upon proper payment, to accept any
instrument authorized by statute to be recorded, provided that it
meets specified requirements. Existing law requires certain documents
relating to real property that are to be recorded to contain
specified information.
   This bill would require a mortgage or deed of trust that is
secured by residential real property, as defined, to have an attached
 rider   Residential Mortgage Participant Rider
form, as set forth, that identifies by name any appraiser,
lender, loan originator, and real estate broker, as defined, who were
involved in the origination of the mortgage or deed of trust and his
or her professional license number, if any. The bill would 
void a mortgage or deed of trust secured by residential real property
that fails to include this rider   prohibit the county
recorder from acc   epting a mortgage or deed of trust for
recordation if a Residential Mortgage Participant Rider form is not
included. By creating a duty for a county recorder to examine a
mortgage or deed of trust to establish if a completed rider has been
included, this bill would impose a state-mandated local program 
. 
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program:  no
  yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 2948.2 is added to the Civil Code, to read:
   2948.2.  (a) A mortgage or deed of trust that is secured by
residential real property shall have attached a  fully completed
and signed Residential Mortgage Participant Rider form, as set forth
in subdivision (d). A Residential Mortgage Participant Rider is a
mortgage  rider that identifies by name any of the following
parties who participated in the origination of the mortgage or deed
of trust and his or her professional license number, if any:
   (1) Appraiser.
   (2) Lender.
   (3) Loan originator.
   (4) Real estate broker. 
   (b) If a transaction does not include any of the parties listed in
subdivision (a), the Residential Mortgage Participant Rider shall
indicate that the participant type is not applicable.  
   (b) 
    (c)  For purposes of this section:
   (1) "Appraiser" means a person who is, or should be, licensed
under Part 3 (commencing with Section 11300) of Division 4 of the
Business and Professions Code.
   (2) "Lender" means the secured creditor or creditors named in the
debt obligation and document creating the lien.
   (3) "Loan originator" means a person who, for compensation or gain
or in the expectation of compensation or gain, takes a residential
mortgage application or offers or negotiates the terms or a
residential mortgage loan. "Loan originator" does not include:
   (A) A person engaged solely as a loan processor or underwriter.
   (B) A person or entity that performs only real estate brokerage
activities and is licensed or registered in accordance with
California law, unless the person or entity is compensated by a
lender, a mortgage broker, a loan originator, or by any agent of
those parties.
   (C) A person or entity that is involved solely in an extension of
credit relating to a timeshare plan as defined in Section 101 of
Title 11 of the United States Code.
   (4) "Residential mortgage loan" means a credit transaction that is
secured by residential real property that is improved by four or
fewer residential units.
   (5) "Residential real property" means real property that is
improved by four or fewer residential units. 
   (c) A mortgage or deed of trust that is secured by residential
real property that does not have the attached rider required by this
section is void. 
   (d) The Residential Mortgage Participant Rider required pursuant
to this section, shall be in substantially the following form:
       Residential Mortgage Participant Rider 
 (To be recorded with Mortgage or Deed of Trust 
 pursuant to Section 2948.2 of the Civil Code.) 
 Residential real property address: _____________ 
 ________________________________________________ 


 +------------------+------------+------------------+ 
 |Participant       |Name        |Professional      | 
 |                  |            |License Number    | 
 +------------------+------------+------------------+ 
 |Appraiser(s)      |            |                  | 
 |                  |            |                  | 
 |( ) Not           |            |                  | 
 |Applicable*       |            |                  | 
 +------------------+------------+------------------+ 
 |Lender(s)         |            |                  | 
 |                  |            |                  | 
 |( ) Not           |            |                  | 
 |Applicable*       |            |                  | 
 +------------------+------------+------------------+ 
 |Loan              |            |                  | 
 |originator(s)     |            |                  | 
 |                  |            |                  | 
 |( ) Not           |            |                  | 
 |Applicable*       |            |                  | 
 +------------------+------------+------------------+ 
 |Real estate       |            |                  | 
 |broker(s)         |            |                  | 
 |                  |            |                  | 
 |( ) Not           |            |                  | 
 |Applicable*       |            |                  | 
 +------------------+------------+------------------+ 


 *Note: In the event that a transaction does not 
 include any of the participants listed in the table 
 above, the box marked ""Not Applicable'' must be 
 checked in order for the form to be complete. 
 Form Completed by__________ Date: __________________ 
                                     (Signed) 
                 ______________________ 
                        (Printed) 


  SEC. 2.    Section 27288.1 of the   Government
Code   is amended to read: 
   27288.1.   (a)    All documents described in
this section now or hereafter authorized by law to be recorded in the
official records of a county shall contain the following information
in addition to any information as may be required by law pertaining
to the particular document: 
   (a) 
    (1)  If the document effects or evidences a transfer or
encumbrance of an interest in real property, the name or names in
which the interest appears of record, except that a notice of
assessment recorded pursuant to Section 3114 of the Streets and
Highways Code, a notice of special tax lien recorded pursuant to
Section 3114.5 of the Streets and Highways Code, and a notice of
award of contract recorded pursuant to Section 5248 of the Streets
and Highways Code, shall show the name or names of the assessed
owners as they appear on the latest secured assessment roll. 

   (b) 
    (2)  If the document releases or terminates any
interest, right or encumbrance, it shall contain or have appended
thereto all of the names of those persons and entities owning the
title or interest being relieved by the document, or the names of the
owners of that title or interest as they appeared at the time and in
the document creating the interest, right or encumbrance. 
   (c) 
    (3)  In cases where the county tax collector is filing
purchaser's deeds with respect to a sale for defaulted taxes, those
documents shall be deemed to constitute compliance with this section.

    (b)    No document subject to this section
shall be recorded or indexed in the official records of a county
unless it contains the information required by this section as well
as any additional information required by law pertaining to the
particular document,  including, but not limited to, the
Residential Mortgage Participant Rider form required by Section
2948.2 of the Civil Code,  but the recorder may rely upon the
information contained in, or appended to, the document being offered
for record. The failure of any document to include all of the names
required by this section shall not affect the constructive notice
which would otherwise be afforded by the recording of the document.
This section shall not apply to a vacation or abandonment by a public
agency of a public highway or road.
   SEC. 3.    If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code. 
                                            ____ CORRECTIONS
Text--Page 5.
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