BILL NUMBER: AB 919	AMENDED
	BILL TEXT

	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.

   (1) Upon 
    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 that identifies by name  the 
 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 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.   The bill would void a mortgage or deed of
trust secured by residential real property that fails to include this
rider.  
   (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. 
   Vote: majority. Appropriation: no. Fiscal committee:  yes
  no  . State-mandated local program:  yes
  no  .


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   any  of the following
 participants   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) 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.  
  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:
   (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.
   (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.
   (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,
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.