BILL NUMBER: AB 919 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 13, 2009
INTRODUCED BY Assembly Member Nava
FEBRUARY 26, 2009
An act to amend Section 2929.3 of the Civil Code,
relating to foreclosure. 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. Foreclosure: vacant properties.
Mortgages: information and recordation.
(1) 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 to have an attached rider that
identifies by name the 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 prohibit a county recorder from
accepting a mortgage or deed of trust for recordation if a completed
rider 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.
(2) 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.
Existing law, until January 1, 2013, requires a legal owner to
maintain vacant residential property purchased at a foreclosure sale,
or acquired by that owner through foreclosure under a mortgage or
deed of trust. Existing law authorizes a governmental entity to
impose civil fines and penalties for failure to maintain that
property of up to $1,000 per day for a violation. Existing law
prohibits a governmental entity from imposing fines on a legal owner
under both these provisions and a local ordinance.
This bill would make nonsubstantive, technical change to these
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 rider that identifies
by name each of the following participants 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) 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.
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.
No
(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, 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.
(c) The recorder shall not accept for recordation any mortgage or
deed of trust executed after January 1, 2010, unless it includes a
completed rider as required by Section 2948.2 of the Civil Code.
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.
SECTION 1. Section 2929.3 of the Civil Code is
amended to read:
2929.3. (a) (1) A legal owner shall maintain vacant residential
property purchased by that owner at a foreclosure sale, or acquired
by that owner through foreclosure under a mortgage or deed of trust.
A governmental entity may impose a civil fine of up to one thousand
dollars ($1,000) per day for a violation. If the governmental entity
chooses to impose a fine pursuant to this section, it shall give
notice of the alleged violation, including a description of the
conditions that gave rise to the allegation, and notice of the entity'
s intent to assess a civil fine if action to correct the violation is
not commenced within a period of not less than 14 days and completed
within a period of not less than 30 days. The notice shall be mailed
to the address provided in the deed or other instrument as specified
in subdivision (a) of Section 27321.5 of the Government Code, or, if
none, to the return address provided on the deed or other
instrument.
(2) The governmental entity shall provide a period of not less
than 30 days for the legal owner to remedy the violation prior to
imposing a civil fine and shall allow for a hearing and opportunity
to contest any fine imposed. In determining the amount of the fine,
the governmental entity shall take into consideration any timely and
good faith efforts by the legal owner to remedy the violation. The
maximum civil fine authorized by this section is one thousand dollars
($1,000) for each day that the owner fails to maintain the property,
commencing on the day following the expiration of the period to
remedy the violation established by the governmental entity.
(3) Subject to the provisions of this section, a governmental
entity may establish different compliance periods for different
conditions on the same property in the notice of alleged violation
mailed to the legal owner.
(b) For purposes of this section, "failure to maintain" means
failure to care for the exterior of the property, including, but not
limited to, permitting excessive foliage growth that diminishes the
value of surrounding properties, failing to take action to prevent
trespassers or squatters from remaining on the property, or failing
to take action to prevent mosquito larvae from growing in standing
water or other conditions that create a public nuisance.
(c) Notwithstanding subdivisions (a) and (b), a governmental
entity may provide less than 30 days' notice to remedy a condition
before imposing a civil fine if the entity determines that a specific
condition of the property threatens public health or safety and
provided that notice of that determination and time for compliance is
given.
(d) Fines and penalties collected pursuant to this section shall
be directed to local nuisance abatement programs.
(e) A governmental entity shall not impose fines on a legal owner
under both this section and a local ordinance.
(f) These provisions shall not preempt any local ordinance.
(g) This section shall only apply to residential real property.
(h) The rights and remedies provided in this section are
cumulative and in addition to any other rights and remedies provided
by law.
(i) This section shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date.