BILL ANALYSIS �
AB 1599
Page 1
ASSEMBLY THIRD READING
AB 1599 (Feuer and Fong)
As Amended April 30, 2012
Majority vote
JUDICIARY 9-1 APPROPRIATIONS 12-5
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|Ayes:|Feuer, Wagner, Atkins, |Ayes:|Fuentes, Blumenfield, |
| |Dickinson, Gorell, Huber, | |Bradford, Charles |
| |Monning, Wieckowski, | |Calderon, Campos, Davis, |
| |Alejo | |Gatto, Hall, Hill, Lara, |
| | | |Mitchell, Solorio |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Jones |Nays:|Harkey, Donnelly, |
| | | |Nielsen, Norby, Wagner |
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SUMMARY : Provides greater language access for homeowners in the
non-judicial foreclosure process. Specifically, this bill :
1)Provides that a mortgagee, trustee, beneficiary, or authorized
agent shall provide to the mortgagor or trustor a summary of
the notice of default, attached to a copy of the recorded
notice of default, and a summary of the notice of sale,
attached to the copy of the recorded notice of sale, in
English and the languages described in Civil Code Section 1632
in order for these documents to be properly recorded and
effective.
2)Provides that the Department of Real Estate (DRE) shall make
available a standard summary translation of a notice of
default and a notice of sale in the languages described in
Civil Code Section 1632, and shall make those documents
available without charge on its Internet Web site if
sufficient private funds are provided to the DRE for this
purpose. Further provides that any mortgagee, trustee,
beneficiary, or authorized agent who uses the DRE's summary
translation shall not be liable for errors in translation.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, minor costs (less than $10,000), fully offset by
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private donations, for the DRE to provide translations of the
summary documents in the five languages and post on its Web
site.
COMMENTS : The author observes that virtually all home
foreclosures in California occur without court supervision. The
mortgage lender or servicer simply issues a notice of alleged
default to the homeowner to begin the process, followed by a
notice of sale when the property is about to be taken away.
These notices contain key information about the foreclosure
process and the homeowner's rights.
Unlike many other similar legal notices, however, these
foreclosure documents are issued only in English under existing
law. If the foreclosure process took place through the courts,
as it does in other states, state and federal law would require
language assistance for people who need help with English.
Supporters of this bill argue that all homeowners should have
equal access to the basic information they need to make an
informed decision when they are hit with foreclosure.
The foreclosure crisis is a systemic problem, but numerous
studies have documented that foreclosures have hit immigrants
and communities of color especially hard, in large part because
these borrowers were targeted for the most risky loans, and in
part because these communities have sustained greater employment
losses in the recession. White borrowers make up the majority
(56%) of households that have suffered foreclosures. But
minorities have had significantly higher foreclosure rates,
studies show, being 70% more likely than white borrowers to lose
their homes to foreclosure.
According to Census Bureau data, California is the most
linguistically diverse state in the nation; nearly seven million
Californians - 27% of the state's residents - were born outside
the United States, and 43% speak a language other than English
at home, over twice the national rate.
The author notes that under existing law when a mortgage is
negotiated in a language other than English, the borrower must
receive a translation of the loan contract. Just as it makes
sense to provide a translation to get someone into a mortgage,
the author argues, it makes equal sense to provide a translation
of the key legal documents by which their home is taken away
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from them in foreclosure.
Similarly, the law requires that tenants who are evicted because
of foreclosure must receive a translation of their legal rights.
The author argues that homeowners who are foreclosed on should
be treated no less fairly than tenants. Indeed, the author
notes, utility customers cannot have their service shut off
without a translated notice under existing law. Just as utility
service to a home cannot be terminated without a translated
notice, the author argues, a homeowner's rights to the house
itself should not be terminated without a similar translation.
Analysis Prepared by : Kevin G. Baker / JUD. / (916) 319-2334
FN: 0003691