BILL ANALYSIS
AB 2024
Page 1
Date of Hearing: May 3, 2010
ASSEMBLY COMMITTEE ON BANKING AND FINANCE
Mike Eng, Chair
AB 2024 (Blumenfield) - As Amended: March 24, 2010
SUBJECT : Loan modification
SUMMARY : Provides that any lender or servicer that rejects a
loan modification request shall respond to the borrower making
the request within 7 days via certified mail with the specific
reasons why the request was rejected. Additionally requires
that the response must comply with certain language translation
requirements.
EXISTING LAW
1)Regulates the non-judicial foreclosure process pursuant to the
power of sale contained within a mortgage contract, and
provides that in order to commence the process, a trustee,
mortgagee, or beneficiary must record a notice of default
(NOD) and allow three months to lapse before setting a date
for sale of the property. [Civil Code Section 2924, all
further references are to the Civil Code].
2)Provides that the mortgagee, trustee or other person
authorized to make the sale must give notice of sale, and
requires notice of sale to be made, as specified, at least 20
days prior to the date of sale. [Section 2924f].
3)Provides that a mortgage, trustee, beneficiary, or authorized
agent (entities) may not file a NOD until 30 days after
contact has been made with the borrower who is in default.
[Section 2923.5a1].
4)Requires entities to contact a borrower in default in person
or by telephone and inform them of their right to a subsequent
meeting, and telephone number of the United States Department
of Housing and Urban Development (HUD) to find a HUD certified
housing counselor. [Section 2923.5a2].
5)Allows a borrower to assign a HUD-certified counselor,
attorney or other advisor to discuss with the entities options
for the borrower to avoid foreclosure. [Section 2923f].
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6)Provides that a NOD may be filed when an entity has not
contacted the borrower provided that the failure to contact
the borrower occurred despite reasonable due diligence on the
part of the entity and that "due diligence" means and requires
the following:
a) The entity sends a first class letter that includes the
toll-free number available for the borrower to find a
HUD-certified housing counseling agency; and,
b) Subsequent to the sending of the letter the entity
attempts to contact the borrower by telephone at least
three times at different hours and on different days.
[Section 2923g].
7)Requires an entity to maintain a toll-free number for
borrowers that will provide access to a live representative
during business hours and requires the entity to maintain a
link on the main page of its Internet Web site containing the
following information:
a) Options that may be available to borrowers who are
unable to afford their mortgage payments and who wish to
avoid foreclose, and instructions to borrowers advising
them on steps to take to explore these options; and,
b) A list of documents borrowers should collect and be
prepared to submit when discussing options to avoid
foreclosure. [Section 2923g (5)].
8)Specifies that the notice and contact requirements do not
apply in the following circumstances:
a) The borrower has surrendered the property as evidenced
via a letter or delivery of keys to the property to the
entity;
b) The borrower has contacted a person or organization
whose primary business is advising people who have decided
to leave their homes on how to extend the foreclosure
process and avoid the contractual obligations; or,
c) The borrower has filed for bankruptcy. [Section 2923h].
9)Makes a legislative finding and declaration that a loan
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servicer acts in the best interests of all parties if it
agrees to, or implements a loan modification or workout plan
in one of the following circumstances:
a) The loan is in payment default, or payment default is
reasonably foreseeable; or,
b) Anticipated recovery under the loan modification or
workout plan exceeds the anticipated recovery through
foreclosure on net present value basis. [Section 2923.6].
10)Provides that a notice of sale may not be given for 90 days
in order for parties to pursue a loan modification. [Section
2923.52].
11)Specifies that a servicer can get an exemption from the
90-day foreclosure moratorium if they demonstrate proof of a
comprehensive modification program. [Section 2923.53]
12)Requires that upon posting of a notice of sale, an entity
shall mail to the borrower a notice in English and Spanish,
Chinese, Tagalog, Vietnamese, or Korean that states:
"Foreclosure process has begun on this property, which may
affect your right to continue to live in this property. Twenty
days or more after the date of this notice, this property may be
sold at foreclosure. If you are renting this property, the new
property owner may either give you a new lease or rental
agreement or provide you with a 60-day eviction notice.
However, other laws may prohibit an eviction in this
circumstance or provide you with a longer notice before
eviction. You may wish to contact a lawyer or your local legal
aid or housing counseling agency to discuss any rights you
may
have." [Section 2924.8].
13)Under Section 1632 of the Civil Code, Requires a person in a
trade or business who negotiates certain specified contracts
or agreements primarily in Spanish, Chinese, Tagalog,
Vietnamese, or Korean must provide an unexecuted translation
of the contract or agreement in the language in which the
contract or agreement was negotiated prior to its execution.
In addition, any subsequent document making substantial
changes in the rights and obligations of the parties must also
be translated. Provides that this requirement does not apply
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if the consumer negotiates the terms of the contract through
an interpreter. The contracts covered by this requirement
are:
a) Retail installment or automobile conditional sales
contracts;
b) Unsecured loans or extensions of credit for use
primarily for personal, family or household purposes;
c) A lease, sublease, or rental contract or agreement;
d) A loan or extension of credit for use primarily for
personal, family or household purposes where the loan is
subject to the Industrial Loan Law (involving industrial
banks or industrial loan companies) or the California
Finance Lenders Law (generally involving higher-end
consumer loans, but may also include some home loans), or
loans involving a real estate broker (in which case only
specified information must be translated);
e) A reverse mortgage; and,
f) Legal services agreements.
14)Provides that the requirement to provide translated copies of
agreements is deemed complied with if a supervised financial
organization, which includes a bank, savings association or
credit union, provides a translation of the disclosures
required by Regulation M (consumer leasing) or Regulation Z
(consumer lending) of the federal Truth in Lending Act.
(Section 1632.)
15)Specifies that the executed English-language contract shall
determine the rights and obligations of the parties, but
provides that the translation may be admissible in evidence
only to show that no contract was entered into because of a
substantial difference between the contract and the
translation. (Section 1632.)
16)Provides that the consumer may rescind the contract if a
required translation is not provided and the transaction was
initiated by a mortgage broker. If the contract has been sold
or assigned to a financial institution, the consumer must make
restitution to, and have restitution made by, the person with
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whom he or she made the contract. In addition, the assignor
is required to promptly repurchase the contract from the
assignee.
17)Section 1632 was updated via AB 1160 (Fong), Chapter 274
Statutes of 2009 with the following changes that take effect
July 1, 2010:
a) Specifies that anyone engaged in a trade or business
that negotiates mortgage loan transactions in Spanish,
Chinese, Tagalog, Vietnamese, or Korean shall provide a
translation to the contracting consumer.
b) Requires the Department of Corporations (DOC) and
Department of Financial Institutions (DFI) and Department
of Real Estate (DRE) to create a translated summary of key
terms of a mortgage transaction.
c) Specifies that the licensing agency may impose a
penalty, addition to any civil liability, in the amount of
$2,500 for the first violation, $5,000 for the second
violation, $10,000 for the third violation, and each
subsequent violation.
d) Provides that nothing shall be construed to prevent any
enforcement by a governmental entity against any person who
originates a loan and who is exempt or excluded from
licensure by all of the licensing agencies, based on a
violation of any provision of this section.
FISCAL EFFECT : None
COMMENTS :
According to the author, this bill is an attempt to ensure that
borrowers have a clear understanding as to the reasons why they
are rejected for a loan modification. A common complaint of
many homeowners is that they are rejected for a modification but
are not told the reasons why, or are unable to understand the
reasons for rejection.
This bill would require that a notice describing the specific
reasons for a denial of a loan modification must be sent to the
borrower within seven days via certified mail of denial and
comply with language translation requirements under current law.
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Where have we been, where are we now, where are we going?
According to the latest report from the Office of the Inspector
General for the Troubled Asset Relief Program (SIGTARP) issued
March 25, 2010, 2.8 million Americans received a foreclosure
filing in 2009 and millions more are expected to receive a
filing in 2010.
The first major legislative effort in California to tackle the
growing foreclosure crisis was the introduction of Senate Bill
1137 (Perata, Corbett, Machado) Chapter 69, Statutes of 2009.
The intent of SB 1137 was to ensure that servicers contact
borrowers prior to the first filing of the foreclosure process,
at least 30 days prior to filing a notice of default NOD,
servicers must either make contact to borrowers or satisfy due
diligence requirements. Contact with the borrower must be in
person or by telephone "in order to assess the borrower's
financial situation and explore options for the borrower to
avoid foreclosure." The borrower must be advised that he or she
has the right to request a subsequent meeting, and if requested,
the meeting must be scheduled to occur within 14 days. The
borrower must be provided with the toll-free telephone number
made available by the United States Department of Housing and
Urban Development to find a HUD-certified housing counseling
agency. Servicers could then file a NOD if, with the filing,
they certify that they have made efforts to contact the
borrower. Early, after the passage of SB 1137 the filing of
NODs dropped significantly for a few months, but eventually
climbed back up as servicers started to understand the steps
needed for compliance.
On February 20, 2009 the Governor signed the California
Foreclosure Prevention Act (CFPA) as an urgency statute.
Implementation of the CFPA occurred 90 days after the signing of
the bill and subsequent to California's three mortgage
regulators (DFI, DOC and DRE) drafting emergency regulations,
culminating on June 1, 2009. The CFPA modified the foreclosure
process by providing for a delay of 90-days to give borrowers an
opportunity to work with their servicers on a loan modification.
However, a 90-day delay in foreclosure proceedings does not
apply in those cases where a mortgage loan servicer has received
an exemption based on the existence of a comprehensive loan
modification program. In addition to the specific
characteristics a comprehensive program as outlined in the
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legislation, participation in the Home Affordable Modification
Program (HAMP) was deemed sufficient to receive an exemption
from the moratorium. The majority of mortgage loan servicers
operating in the state have received an exemption from the
90-day foreclosure moratorium (More information on those who
have received exemptions can be found at
http://www.corp.ca.gov/FSD/CFP/default.asp ). The CFPA does not
require an individual to receive a modification, only that a
servicer has a program in place.
On February 18th, 2009, President Obama announced a
multi-pronged approach to deal with the foreclosure crisis
through the use of mortgage refinancing and mortgage
modification.
The Making Home Affordable Program (MHAP) is part of the Obama
Administration's broad, comprehensive strategy to get the
economy and the housing market back on track. MHAP offers two
different potential solutions for borrowers: (1) refinancing
mortgage loans, through the Home Affordable Refinance Program
(HARP), and (2) modifying mortgage loans, through HAMP. HAMP
is the tip of the spear in the government's attempt to mitigate
foreclosures.
How does HAMP work? In order to be eligible for HAMP, the
borrower must be in default (60 or more days late) or be at risk
of imminent default. The property must be owner-occupied and
have a maximum unpaid principal balance of $729,750 and the
mortgage must have been originated by January 1, 2009. Once the
mortgage meets the criteria the servicer undertakes a net
present value test (NPV) to determine whether modification,
foreclosure, or foreclosure alternatives are in the best
interest of the mortgage holder. If the model generates a
positive value for modification, meaning that loss to the owner
of the mortgage would be less than foreclosure then HAMP
participating servicers are required to offer a modification so
long as modification is not prohibited by investors. Once the
aforementioned criteria are met the servicer follows HAMP's
"waterfall" formula in order to design a modification that will
result in a front end (meaning costs of housing, property taxes,
property insurance and HOA dues) debt to income (DTI) ration of
31%. The "waterfall" is a series of steps that go in order
until the DTI is close to 31% as possible. The following are
the "waterfall" steps:
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1)Capitalize all outstanding interest, escrow advances and third
party fees, and waive late fees for borrowers who meet trial
modification guidelines.
2)Reduce mortgage interest rate in increments of .125 percent
with a floor of two percent.
3)Extend term of mortgage up to 480 months (40 years) from the
modification date.
4)Provide non-interest bearing and non-amortizing principal
forbearance.
In order to encourage participation in the program, Treasury
pays incentives using Troubled Asset Relief Program (TARP)
funds. If a servicer makes modification to the get the
homeowner down to a 38% DTI, Treasury will provide 50% of the
costs of the modification to get the loan modified to the target
31% DTI. Payments are made only after the modification becomes
permanent and last for up to five years, or until the loan is
paid off, whichever is earlier. HAMP also includes the
following incentive programs:
1)Servicers will receive an up-front incentive payment of $1000
for each permanent modification. They will also receive pay
for success payments as the borrower stays in the program, of
up to $1000 each year for up to three years.
2)Borrowers are eligible to receive a pay-for-performance
success payment that goes straight toward reducing the
principle balance on the mortgage loan of up to $1000 per
monthly payment for up to five years.
3)One-time bonus incentive payments of $1,500 to investors and
$500 to servicers will be provided for modifications made
while the borrower is still current on mortgage payments, but
in danger of imminent default.
Principle forgiveness is not required under HAMP, however recent
changes to HAMP address this issue and will be discussed later
in this analysis.
Over a year after its implementation the reviews are mixed as
over a million trial modifications have been offered, yet only
169,000 have been made permanent. Several factors have
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contributed to this performance such as program guidelines that
have changed many times. A major change just recently announced
is the requirement of income verification at the time of
starting the trial modification, which is set to begin mid-April
of 2010. Prior to this change, servicers were allowed to use
undocumented income declarations from the borrower to make a
determination for a trial modification. During the three month
trial period servicers attempt to verify income through proper
documentation. This process may have been a contributing factor
to the low permanent loan modification numbers thus far.
A report, "Factors Affecting Implementation of the Home
Affordable Modification Program", issued March 25, 2010 by
SIGTARP reveals several obstacles and difficulties that plague
HAMP even a year after its inception. Since HAMP started, it
has undergone 11 program changes and updated directives and an
additional 9 changes to its NPV model. The following are a
few of the issues identified by SIGTARP:
1)Five of the HAMP servicers visited by SIGTARP for the audit
covered in the report, mentioned that they lacked guidance on
identifying and determining eligibility for borrowers at
imminent risk of default on privately owned mortgages
(Non-GSE).
2)Some servicers have told borrowers that they must be in
default to be considered for a modification even though HAMP
provides help for those facing default.
3)Servicers are still undergoing challenges in maintaining and
training staff to handle modifications.
4)Marketing of the availability of HAMP as an option has been
limited by a lack of guidance from Treasury and servicer
specific delays.
5)Treasury informed SIGTARP that potentially only 50-66% of
estimated three million trial modifications will convert to
permanent status.
In testimony before the U.S. House Committee on Oversight and
Government Reform (March 25, 2010), the Acting Comptroller
General of the United States, Gene L. Dodaro testified to the
difficulties faced by the HAMP program based on findings from
the Government Accountability Office (GAO). The following are
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some of the HAMP issues highlighted by the GAO:
1)Treasury has not year finalized remedies or penalties for
servicers who are not in compliance with HAMP guidelines.
2)Each major program change has required servicers to update
computer systems, adjust business practices and retrain
servicing staff.
3)Ten servicers contacted by GAO had 7 different sets of
criteria for determining whether borrowers who were not yet 60
days delinquent qualified for HAMP.
4)Although Treasury guidelines state that servicers must provide
borrowers with information designed to help them understand
the modification process and must respond to HAMP inquires in
a timely manner, the HAMP servicers contacted by GAO varied
widely in the timeliness and content of their initial
communications with borrows about HAMP. Some servicers
contacted borrowers about HAMP as soon as payment was 30 day
delinquent, and other servicers did not inform borrowers until
they were at least 60 days delinquent.
5)Treasury has not developed standards to evaluate servicers'
performance in communicating with borrowers or penalties for
servicers that do not meet Treasury's requirements.
6)Servicers do not a systematic process for tracking HAMP
complaints.
The GAO also reported that the numerous program changes to HAMP
and often, a lack of clarity on certain provisions have made the
program less effective than it could be.
Servicer guidance on the implementation of HAMP is governed by
Supplemental Directives issued by the Treasury Department.
These directives can be found at
https://www.hmpadmin.com/portal/programs/directives.html .
The most recent change to HAMP, announced on March 26th, 2010
involves program changes intended to address unemployed
borrowers, negative equity and the concurrent pursuant of a
foreclosure while a loan is being reviewed for modification.
According the limited details released, the new enhancements
will require servicers to provide 3-6 months of temporary
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forbearance for eligible unemployed borrowers, after which they
will be evaluated for a HAMP modification. Second, servicers
will be encouraged through various incentives to consider
principle reductions for loans that are over 115% of current
value of the property. Finally, guidance will be forthcoming on
the issue of borrowers who continue to face the foreclosure
process while under evaluation for a HAMP modification. These
guidelines will provide clarification on protections for
borrowers from foreclosure actions who are under consideration
for a modification.
Specific to the proposal in the bill under consideration is HAMP
Supplemental Directive 09-08 issued on November 3, 2009. The
directive requires that a servicer must send a notice to a
borrower who has been evaluated for HAMP but is not offered a
trial modification. The notices must describe the specific
reason(s) the borrower was not offered a trial plan, or if they
did receive a trial, then the reasons for not receiving a
permanent modification. Additionally, the notices must include
information on foreclosure alternatives and the steps the
borrower should take in order to utilize one of those
alternatives. Finally, borrower notices must include a
toll-free number through which the borrower can reach a servicer
representative capable of providing specific details about the
contents of the notice, the HOPE Hotline number with an
explanation that they borrower can receive free assistance from
HUD approved counselors, and any other information or
disclosures required by state or federal law.
HAMP is not the only foreclosure prevention effort. Several
large servers with the most market share also have proprietary
modification programs in place for borrowers who may not qualify
for HAMP. Proprietary mortgage modification programs vary by
servicer and range in ways in which they attempt to modify
loans. While HAMP has a formulaic structure used to accomplish
a modification, servicers can use their own judgment and
flexibility to perform proprietary loan modifications. HOPE
NOW a coalition of servicers, counselors and investors
collections and releases data specific to non-HAMP
modifications. HOPE NOW released data regarding January loan
modifications and found that proprietary modifications outpaced
HAMP modifications 2-1 and that that 74% of modifications
conducted in January involved reduction of principle and
interest.
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Issues for discussion.
1)How prevalent is the problem identified by the bill? Are
denial letters not occurring? Is issue for homeowners that
they didn't get a denial letter, or is the real issue that
they were denied?
2)This bill references Civil Code Section 1632 by requiring that
the loan modification rejection letter must comply with its
provisions. Section 1632, as noted under the "existing law"
section contains a multitude of situations and documents that
require translation. While section 1632 contains provisions
relating to mortgage loans, it does not provide any specifics
on correspondence between a servicer and a borrower subsequent
to the origination of the mortgage. In those cases where a
translation is required for the mortgage transaction, 1632 has
created a requirement that DRE, and DOC create standardized
translation forms for use by licensees. This bill does not
propose to create a standardize form. Additionally, reference
to this code section without specificity could lead to
confusion as the reference does not provide guidance as to
which particular provision would apply.
3)What specific items should be included in the notice?
Currently, the bill does not provide for specific reasons or
disclosures relating to the denial notice?
Related legislation.
AB 1720 (Galgiani), The Buyer's Choice Act prohibits a
mortgagee who acquired title to residential real property at a
foreclosure sale from requiring, as a condition of selling the
property, that the buyer purchase title insurance or escrow
services in connection with the sale from a particular title
insurer or escrow agent. This bill would revise the act to
require the Department of Financial Institutions, the Department
of Corporations, the Department of Real Estate, and the
Department of Insurance to develop a single-standard complaint
form for reporting a violation of these provisions and to make
that form available on each department's respective Internet web
site. The bill would also prohibit a seller from conditioning
approval of the sale of residential real property that is in
foreclosure on the selection made by the buyer as indicated on
an independent selection form. The bill would also specifically
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define residential real property to include residential real
property that is in foreclosure.
Status: In Assembly Judiciary Committee
AB 2043 (Torrico), redefines the term "redevelopment" to include
the provision of loan assistance to qualified homeowners
participating in the federal Home Affordable Modification
Program. Authorizes a redevelopment agency to use redevelopment
funds to issue loans, up to a maximum of $75,000, to reduce the
principal mortgage balance of a borrower that has received a
mortgage modification under the federal Home Affordable
Modification Program and meets other specified requirements.
Status: In Assembly Housing & Community Development Committee
AB 2189 (Ma), requires a loan modification agreement to be
translated into one of five non-English languages if the
original mortgage was negotiated in that language.
Status: In Assembly Banking Committee.
AB 2236 (Monning), requires a mortgagee, trustee, or
beneficiary, or an authorized agent of that person, to include
on all notices informing a borrower that he or she has either
failed to make a required minimum payment or failed to make a
payment when due, the name and the contact information,
including the address and telephone number, of the mortgagee,
trustee, beneficiary, or authorized agent who has the authority
pursuant to state and federal law to modify the terms and
conditions of the borrower's loan.
Status: In Assembly Banking & Finance Committee.
AB 2678 (Fuentes), prohibits a notice of sale from being issued,
if the mortgagee, trustee, beneficiary or authorized agent is
currently in negotiations with a borrower on a loan
modification.
Status: In Assembly Banking & Finance Committee.
SB 1275 (Leno, Steinberg), requires a mortgagee, trustee,
beneficiary, or authorized agent, prior to the filing of a
notice of default, to provide the borrower with an application
for a loan modification and other foreclosure avoidance options
and a specified notice regarding the borrower's rights during
the foreclosure process. Prohibits the mortgagee, beneficiary,
or authorized agent from combining collections activity with
communication with the borrower about foreclosure avoidance
options. Deletes the requirement that the notices of default
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contain a specified declaration, and would instead require the
mortgagee, beneficiary, or authorized agent to, concurrently
with the filing of a notice of default, record a declaration of
compliance that attests to specified facts, and mail the
borrower a notice stating that these requirements have been met.
Provides that failure to record a declaration of compliance, or
recordation of a declaration of compliance that fails to meet
the specified requirements, would constitute grounds for the
borrower to bring an action to void the foreclosure, or to
recover either treble damages or statutory damages in the amount
of $10,000, whichever is greater, from the mortgagee, trustee,
beneficiary, or authorized agent.
Status: In Senate Judiciary
SB 1427 (Price), requires a notice of default to include a
statement that identifies the name, address, telephone, and
e-mail address of any person or entity that is designated to be
responsible for the maintenance of the property for which the
deed of trust is recorded. Existing law 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; 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;
and provides that these statutory provisions do not preempt any
local ordinances and prohibits a governmental entity from
imposing fines on a legal owner under both these provisions and
a local ordinance. This bill would provide that these statutory
provisions preempt any local ordinance and provides that any
fines or penalties imposed for failure to maintain a property
are the obligation of the legal owner and that these fines would
be treated as a lien against the property in a foreclosure sale.
Status: In Senate Judiciary Committee
AB 69 (Lieu), Debt management and settlement: credit counselors:
This requires mortgage lenders to report to their respective
regulatory agency information regarding loan loss mitigation
efforts. Status: Chaptered by Secretary of State, Chapter 277,
Statutes of 2008.
AB 529 (Torrico), Mortgages: adjustable interest rates:
notification: This bill requires a borrower to receive notice
if their loan is scheduled to switch from an initial fixed rate
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to an adjustable rate, or set to reset to a fully amortizing
loan. This notification must occur between 90 and 120 days
before the loan is scheduled to switch or reset. The notice
must include the current payment, the month and year the loan
will change, an example of the potentially monthly payment after
reset, and a number the borrower may contact for more
information about the terms of the loan.
Status: Vetoed by the Governor.
AB 2187 (Caballero), Mortgages: foreclosure: This bill imposes
certain requirements on mortgage lenders that are foreclosing on
property. AB 2187 requires a lender foreclosing on real estate
property to include with the notice of default a foreclosure
statement of rights, which specifies the process of foreclosure
and sets forth the rights of the borrower regarding contracts
with mortgage foreclosure consultants. Also, requires that the
foreclosure notice be provided in the language of the borrower.
Provides, until January 1, 2013, a mortgage lender or other
person acquiring a property through the foreclosure process
maintain the exterior of vacant residential property. This bill
authorizes governmental entities to levy fines of up to $1,000
per day for violations. However, it requires the governmental
entity to provide the owner with notice of the claimed violation
and an opportunity to correct the violation within 30 days prior
to levying the fine. Status: Died in Assembly Appropriation
Committee.
SB 1137 (Perata), Residential mortgage loans: foreclosure
procedures: This bill enacts changes related the foreclosure
process in response to the subprime lending/foreclosure crisis.
Requires face-to-face contact with a borrower at least 30 days
before the filing of a notice of default. Gives tenants of
foreclosure property additional time to vacate the property
after it has been sold at a foreclosure auction. Status:
Chaptered by Secretary of State, Chapter 69, Statues of 2008.
SB 1448 (Scott), Real estate brokers and salespersons: fines:
This bill increases the maximum fine for an unlicensed person
acting or advertising themselves as a real estate broker or a
real estate salesperson from $10,000 to $20,000 and for an
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unlicensed corporation from $50,000 to $60,000, and requires any
fine collected in excess of $10,000 from an individual or in
excess of $50,000 from a corporation be deposited into the Real
Estate Fraud Prosecution Trust fund if one exists in the county
where the conviction occurs.
Status: Chaptered by Secretary of State, Chapter 156, Statues of
2008.
ABXX 7 (Lieu) & SB 7XX (Corbett), Residential mortgage loans:
foreclosure. Required loan servicers to provide evidence of a
comprehensive loan modification plan that meets specific
criteria. A servicer that does not have a comprehensive loan
modification plan would have to delay foreclosure on specified
properties for 90 days.
Status: Chaptered by Secretary of State, Chapter 5, Statues of
2009 - 2010 Extraordinary Session
REGISTERED SUPPORT / OPPOSITION :
Support
CALPIRG
Opposition
California Bankers Association
California Chamber of Commerce
California Financial Services Association
California Mortgage Bankers Association
Analysis Prepared by : Mark Farouk / B. & F. / (916) 319-3081