Amended in Senate April 22, 2013

Amended in Senate March 21, 2013

Senate BillNo. 310


Introduced by Senator Calderon

February 15, 2013


An act to add Section 2924.26 to, and to add and repeal Section 2924.25 of, the Civil Code, relating to mortgages.

LEGISLATIVE COUNSEL’S DIGEST

SB 310, as amended, Calderon. Mortgages: foreclosure notices: title companies.

Existing law requires a mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent to, among other things, contact the borrower prior to filing a notice of default to explore options for the borrower to avoid foreclosure, as specified. Existing law, until January 1, 2018, prohibits a mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent from recording a notice of default if a foreclosure prevention alternative is approved in writing prior to the recordation of a notice of default under certain circumstances. Existing law, operative January 1, 2018, prohibits a mortgage servicer, trustee, mortgagee, beneficiary, or authorized agent from recording a notice of sale or conducting a trustee’s sale while a foreclosure prevention alternative application submitted by the borrower is pending, as specified. Existing law, until January 1, 2018, prohibits a mortgage servicer, trustee, mortgagee, beneficiary, or authorized agent from recording a notice of default, notice of sale, or conducting a trustee’s sale while a complete first lien loan modification application submitted by the borrower is pending, as specified. Existing law, until January 1, 2018, authorizes a borrower to bring an action for injunctive relief to enjoin a material violation of certain of these provisions if a trustee’s deed of sale has not been recorded.

This bill would exempt a licensed title company or underwritten title companybegin insert, except when it is acting as a trustee,end insert from liability for a violation of those provisions if it records or causes to record a notice of default or notice of sale at the request of a trustee, substitute trustee, or beneficiary, in good faith and in the normal course of its business activities.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 2924.25 is added to the Civil Code, to
2read:

3

2924.25.  

(a) begin deleteA end deletebegin insertUnless acting in the capacity of a trustee, a end insert
4licensed title company or underwritten title company shall not be
5liable for a violation ofbegin delete Sectionsend deletebegin insert Sectionend insert 2923.5, 2923.55, 2923.6,
62924.11, 2924.18,begin delete andend deletebegin insert orend insert 2924.19 if it records or causes to record
7a notice of default or notice of sale at the request of a trustee,
8substitute trustee, or beneficiary, in good faith and in the normal
9course of its business activities.

10(b) This section shall remain in effect only until January 1, 2018,
11and as of that date is repealed, unless a later enacted statute, that
12is enacted before January 1, 2018, deletes or extends that date.

13

SEC. 2.  

Section 2924.26 is added to the Civil Code, to read:

14

2924.26.  

(a) begin deleteA end deletebegin insertUnless acting in the capacity of a trustee, a end insert
15licensed title company or underwritten title company shall not be
16liable for a violation ofbegin delete Sections 2923.5 andend deletebegin insert Section 2923.5 or
17Section end insert
2924.11 if it records or causes to record a notice of default
18or notice of sale at the request of a trustee, substitute trustee, or
19beneficiary, in good faith and in the normal course of its business
20activities.

21(b) This section shall become operative on January 1, 2018.



O

    97