BILL ANALYSIS �
SENATE BANKING & FINANCIAL INSTITUTIONS COMMITTEE
Senator Juan Vargas, Chair
AB 1599 (Feuer) Hearing Date: June 27,
2012
As Amended: April 30, 2012
Fiscal: Yes
Urgency: No
SUMMARY Would require mortgagees, trustees, beneficiaries, and
authorized agents (i.e., lenders who initiate foreclosure) to
provide mortgagors or trustors (i.e., borrowers) with a copy of
the recorded notice of default, containing a summary of the
notice of default, and a copy of the recorded notice of sale,
containing a summary of the information required to be contained
in the notice of sale. These documents would have to be
provided in English and in five foreign languages specified in
Civil Code Section 1632 (Spanish, Chinese, Tagalog, Vietnamese,
and Korean). Would further require the Department of Real
Estate to develop summary translations of a notice of default
and a notice of sale in those five foreign languages, and to
make those documents available on its Internet web site, if
private funds for that purpose are provided.
DESCRIPTION
1. Would require a mortgagee, trustee, beneficiary, or
authorized agent to provide the following to a mortgagor or
trustor:
a. A copy of the recorded notice of default (NOD),
containing a summary of the notice of default, in English
and the languages described in Section 1632;
b. A copy of the recorded notice of sale (NTS),
containing a summary of the information required to be
contained in the notice of sale, in English and the
languages described in Section 1632.
2. Would require the Department of Real Estate (DRE) to
provide a standard summary translation of a NOD and NTS in
the languages described in Section 1632, and make those
documents available on its Internet web site, but only if
AB 1599 (Feuer), Page 2
sufficient private funds are provided for this purpose.
Would clarify that posting of the documents on the
Department's web site shall be deemed to be an
acknowledgement that sufficient funding has been obtained.
3. Would provide that any mortgagee, trustee, beneficiary, or
authorized agent that uses the summary translation produced
by DRE shall not be liable for errors in translation.
4. Would require each NOD to include a summary of the NOD, in
English and the five foreign languages described in Civil
Code Section 1632 (Spanish, Chinese, Tagalog, Korean, and
Vietnamese).
5. Would require each NTS to include a summary of the
information required to be contained in the NTS, in English
and the five foreign languages described in Civil Code
Section 1632 (Spanish, Chinese, Tagalog, Korean, and
Vietnamese).
EXISTING LAW
1. Prescribes rules that govern the nonjudicial foreclosure
process in California (Civil Code Section 2924 et seq.). A
layman's description of the portions of the process that are
relevant to this bill follows immediately below.
a. The nonjudicial foreclosure process begins with the
recordation of a NOD by a mortgagee, trustee, beneficiary, or
authorized agent. The NOD must be recorded in the county in
which the property securing the defaulted loan is located,
and must be mailed to specified persons with a financial
interest in the property, including the property owner.
Existing law does not prescribe the minimum amount of time
that must pass between a delinquency and the recordation of a
NOD, although NODs are commonly recorded only after a
borrower is at least 90 days delinquent on his or her
mortgage loan.
A 2008 bill (SB 1137, Perata, Chapter 69, Statutes of 2008),
whose provisions are scheduled to sunset on January 1, 2013,
unless they are extended, modifies that process for loans
originated between January 1, 2003 and December 31, 2007,
which are secured by single-family, owner-occupied
residential real property. On loans covered by SB 1137,
mortgagees, beneficiaries, and authorized agents are required
AB 1599 (Feuer), Page 3
to attempt to contact property owners to discuss options for
the owners to avoid foreclosure, before recording a NOD.
Under SB 1137, a notice of default cannot be recorded until
at least 30 days after the mortgagee, trustee, beneficiary,
or authorized agent makes initial contact with a borrower, or
satisfies specified due diligence requirements to make
contact.
b. At least three months must pass after recordation of a
NOD, before the mortgagee, trustee, beneficiary, or
authorized agent may record a NTS. NTSs must be recorded in
the county in which the property securing the defaulted loan
is located, mailed to the property owner and other specified
persons with a financial interest in the property, published
in a newspaper of general circulation, and posted on the
property that is the subject of the sale.
c. At least 20 days must pass after recordation of a NTS,
before a property may be sold. However, sale dates may be,
and often are, postponed. Under existing law, a sale date
may be postponed for any of the following reasons: 1) upon
the order of any court of competent jurisdiction; 2) if
stayed by operation of law; 3) by mutual agreement, whether
oral or in writing, of any trustor and any beneficiary or any
mortgagor and any mortgagee (i.e., by mutual agreement
between a borrower and his or her lender); and/or 4) at the
discretion of the trustee. A new notice of sale must be
recorded, if a postponement or postponements delay the sale
for more than 365 days following the first scheduled sale
date.
COMMENTS
1. Purpose: According to the author, this bill is intended "to
help more homeowners obtain equal access to the basic
information they need to make an informed decision when they
are hit with foreclosure, regardless of whether they have
become fully proficient in English."
2. Background: In introducing this bill, the author observes
that, unlike many other similarly important legal notices,
nonjudicial foreclosure documents are issued only in English
under existing California law. If judicial foreclosures on
residential property were the norm, state and federal law
would require language assistance for people who need help
with English.
AB 1599 (Feuer), Page 4
According to the author's office, although the foreclosure
crisis is a systemic problem, numerous studies have
documented that foreclosures have hit immigrants and
communities of color especially hard. Although white
borrowers make up the majority (56%) of households that have
suffered foreclosures, minorities have had significantly
higher foreclosure rates. Studies show that minorities are
70% more likely than white borrowers to lose their homes to
foreclosure. In Los Angeles County, Neighborhood Legal
Services reports that nearly three-quarters of the clients
seeking foreclosure assistance from legal aid are
non-English speaking.
3. Discussion: In the last five years, the Legislature has
enacted two different bills to provide foreign language
translations of certain mortgage- and foreclosure-related
documents. The first was SB 1137 (Perata), Chapter 69,
Statutes of 2008, which required a notice to be posted on
and mailed to the address of certain residential real
properties subject to a notice of sale. That notice was
intended to inform residents of each property receiving the
notice that the foreclosure process had begun on the
property in which they were living, and that their ability
to live in that property over the long-term could be
affected. The notice also suggested that the resident
contact a lawyer or other local legal aid or housing
counseling agency to discuss any rights he or she might
have.
SB 1137 incorporated the language of the required notice into
statute, and required "a state government entity"
(unspecified in the statute) to make translations of the
notice available, which could be used by a mortgagee,
trustee, beneficiary, or authorized agent to satisfy the
requirements of the section. The requirement for
mortgagees, trustees, beneficiaries, and authorized agents
to provide the translated documents became operative 60 days
following enactment of the measure.
AB 1160 (Fong), Chapter 274, Statutes of 2009, required the
Department of Corporations (DOC) and Department of Financial
Institutions (DFI) to create a form for use by supervised
financial organizations, as defined, to summarize the terms
of residential mortgage loans, and to make that form
available in each of the five foreign languages specified in
AB 1599 (Feuer), Page 5
Civil Code Section 1632. The requirement to provide the
translated forms became operative six months following
enactment of the measure, or 90 days following the issuance
of the forms by DOC and DFI, whichever was later.
Although this bill is similar to SB 1137 and AB 1160 in its
desire to make foreign language translations of specified
documents available to borrowers, it differs from the bills
in three significant ways. First, it does not contain any
guidance regarding what information should be included in
the summaries that mortgagees, trustees, beneficiaries, or
authorized agents (or the DRE, if private funds are
available) are required to develop. Second, it relies on a
private funding mechanism. Third, it lacks a delayed
operative date. All three of these issues are addressed
with suggested amendments, below.
4. Clarifying The Contents of The Summaries Required By This
Bill: As drafted, AB 1599 is silent on the wording of the
summaries it require lenders or the DRE to develop.
Unfortunately, this silence has led to confusion, both on
industry's and DRE's part, regarding what, exactly, the
author is seeking to have included in the summaries. This
silence has also led to reluctance among state departments
to take the responsibilities of this bill on.
In an effort to provide the clarity that is necessary for DRE
(or DOC; see below) to produce the summaries and
translations required by this bill, Committee staff
requested, and author's staff provided, a list of the
information the author wishes to have included in the
summaries. According to the author's staff, the following
information should be included in the summaries of the NOD
and NTS, at a minimum:
NOD Summary: Information required by Section 2924(a)(1)(A)
through (D), and any declarations required to be included in
the notice of default.
NTS Summary: Information required by Section 2924f(b)(1),
(b)(5), (b)(7), the notice to property owner provision of
(b)(8), and any declarations required to be included in the
notice of sale.
5. Contents of the NOD Summary: Information required by
Section 2924(a)(1)(A) through (D) includes the following: a
AB 1599 (Feuer), Page 6
statement identifying the mortgage or deed of trust by
stating the name(s) of the trustor(s) and giving the book
and page where the mortgage or deed of trust is recorded or
a description of the mortgaged or trust property; a
statement that a breach of the obligation has occurred; a
statement setting forth the nature of each breach known to
the beneficiary; a statement that the beneficiary has
elected to sell the property to satisfy that breached
obligation; and, if the default is curable, a statement
whose language is specified in subdivision (b) of Section
2924c (see immediately below for a reproduction of this
statement).
The statement required to be included in the notice of default
pursuant to subdivision (b) of Section 2924c reads as
follows:
IMPORTANT NOTICE: IF YOUR PROPERTY IS IN FORECLOSURE BECAUSE YOU
ARE BEHIND IN YOUR PAYMENTS, IT MAY BE SOLD WITHOUT ANY
COURT ACTION, and you may have the legal right to bring your
account in good standing by paying all of your past due
payments plus permitted costs and expenses within the time
permitted by law for reinstatement of your account, which is
normally five business days prior to the date set for the
sale of your property. No sale date may be set until
approximately 90 days from the date this notice of default
may be recorded (which date of recordation appears on this
notice).
This amount is ____________ as of ___(date)____________and
will increase until your account becomes current.
While your property is in foreclosure, you still must pay other
obligations (such as insurance and taxes) required by your
note and deed of trust or mortgage. If you fail to make
future payments on the loan, pay taxes on the property,
provide insurance on the property, or pay other obligations
as required in the note and deed of trust or mortgage, the
beneficiary or mortgagee may insist that you do so in order
to reinstate your account in good standing. In addition, the
beneficiary or mortgagee may require as a condition to
reinstatement that you provide reliable written evidence
that you paid all senior liens, property taxes, and hazard
insurance premiums.
Upon your written request, the beneficiary or mortgagee will
AB 1599 (Feuer), Page 7
give you a written itemization of the entire amount you must
pay. You may not have to pay the entire unpaid portion of
your account, even though full payment was demanded, but you
must pay all amounts in default at the time payment is made.
However, you and your beneficiary or mortgagee may mutually
agree in writing prior to the time the notice of sale is
posted (which may not be earlier than three months after
this notice of default is recorded) to, among other things,
(1) provide additional time in which to cure the default by
transfer of the property or otherwise; or (2) establish a
schedule of payments in order to cure your default; or both
(1) and (2).
Following the expiration of the time period referred to in the
first paragraph of this notice, unless the obligation being
foreclosed upon or a separate written agreement between you
and your creditor permits a longer period, you have only the
legal right to stop the sale of your property by paying the
entire amount demanded by your creditor.
To find out the amount you must pay, or to arrange for payment
to stop the foreclosure, or if your property is in
foreclosure for any other reason, contact:
____________________________________
(Name of beneficiary or mortgagee)
____________________________________
(Mailing address)
____________________________________
(Telephone)
If you have any questions, you should contact a lawyer or
the governmental agency which may have insured your loan.
Notwithstanding the fact that your property is in
foreclosure, you may offer your property for sale, provided
the sale is concluded prior to the conclusion of the
foreclosure.
Remember, YOU MAY LOSE LEGAL RIGHTS IF YOU DO NOT TAKE
PROMPT
ACTION.
At present, the only declaration required to be included in
the NOD is the one required by SB 1137 (i.e., a statement
that the borrower was contacted to assess the borrower's
financial situation and to explore options for the borrower
to avoid foreclosure, and a list of the efforts made, if
AB 1599 (Feuer), Page 8
any, to contact the borrower in the event that no contact
was made). No additional declarations are currently being
contemplated in any pending legislation.
6. Contents of the NTS Summary: Information the author would
like included in the NTS summary includes the following:
the time and place of sale; a description of the property;
the name and contact information for the trustee; the name
of the original trustor; a specified statement required by
2924f(c)(3), which is reproduced below; a statement of the
total unpaid balance of the obligation secured by the
property to be sold and reasonably estimated costs,
expenses, and advances at the time of the initial
publication of the notice of sale; and a specified "notice
to property owner," which is reproduced below. At present,
there are no declarations that are required to be included
in the NTS.
Copy of the statement required by 2924(f)(c)(3):
YOU ARE IN DEFAULT UNDER A
_______________________________________________,
(Deed of trust or mortgage)
DATED ____. UNLESS YOU TAKE ACTION TO PROTECT
YOUR PROPERTY, IT MAY BE SOLD AT A PUBLIC SALE.
IF
YOU NEED AN EXPLANATION OF THE NATURE OF THE
PROCEEDING AGAINST YOU, YOU SHOULD CONTACT A
LAWYER.
Copy of the notice to property owner:
NOTICE TO PROPERTY OWNER: The sale date shown on this
notice of sale may be postponed one or more times by the
mortgagee, beneficiary, trustee, or a court, pursuant to
Section 2924g of the California Civil Code. The law
requires that information about trustee sale postponements
be made available to you and to the public, as a courtesy
to those not present at the sale. If you wish to learn
whether your sale date has been postponed, and, if
applicable, the rescheduled time and date for the sale of
this property, you may call �telephone number for
information regarding the trustee's sale] or visit this
Internet Web site �Internet Web site address for
information regarding the sale of this property], using the
file number assigned to this case �case file number].
AB 1599 (Feuer), Page 9
Information about postponements that are very short in
duration or that occur close in time to the scheduled sale
may not immediately be reflected in the telephone
information or on the Internet Web site. The best way to
verify postponement information is to attend the scheduled
sale.
7. Summary of Arguments in Support: Several consumer advocacy
organizations, immigrants' rights groups, and individuals
sent letters in support of AB 1599. The California Immigrant
Policy Center expressed the views of all of the proponents,
as follows: "California is one of the states hardest hit by
the foreclosure crisis...At the same time, California's
minority, immigrant, and low-income households have been
disproportionally affected by the crisis...We've seen
immigrants preyed upon due to their ethnicity, immigration
status, and limited-English proficiency. The State of
California has a well established history of making
translated documents available to consumers who have a
limited proficiency in English. AB 1599 builds on that
history by requiring mortgage servicers to provide borrowers
with a summary of two vital foreclosure documents - the
notice of default and the notice of sale in each of the five
languages required under California Civil Code section 1632.
When a borrower is at risk of losing their home, the need
for clear documents that outline how the foreclosure process
works and what options are available to borrowers to avoid
foreclosure is crucial...All written and spoken
communication with non-English speaking borrowers should be
available in the borrower's native language. AB 1599 is a
good first step in the right direction."
8. Summary of Arguments in Opposition: A coalition of
mortgage industry trade groups and the California Chamber of
Commerce are opposed to AB 1599 on the grounds that the bill
fails to identify the specific content of the summaries it
would require, nor to clarify how that content will be
determined. These industry groups are also uncertain about
how the private funding mechanism will work, and when or if
the translation will be provided by DRE. The groups state
that the funding mechanism in AB 1599 differs from the
funding mechanisms used in SB 1137 and AB 1160, and question
why this measure deviates from that successful model.
Finally, the groups express concern about the portions of
this bill which amend Civil Code Section 2924 and 2924f.
They fear that the effect of these amendments will be to
AB 1599 (Feuer), Page 10
invalidate otherwise valid foreclosures, and to cloud title,
which will expose bona fide purchasers and bona find
encumbrancers to challenges and will discourage the purchase
of foreclosed properties.
9. Amendments:
a. Funding Mechanism: The author's office has
expressed a willingness to depart from the private
funding mechanism contained in this bill, and instead
require the NOD and NTS summaries to be prepared by a
state entity. Unfortunately, the DRE does not wish to
use its own resources to provide the summaries, because
it does not feel comfortable using its licensees' monies
to produce documents that so few of its licensees are
likely to use. Given the concerns expressed by DRE
staff, Committee staff contacted DOC regarding its
willingness to take on the responsibilities that would be
required pursuant to this bill. DOC is willing to take
on the responsibility of translating the summaries
without relying on private funds, but is uncomfortable
being given the responsibility to prepare the summaries
that will form the basis for the translations.
Staff suggests that, if the author accepts the amendments
below, which clarify the specific contents of the
summaries, this bill be amended to strike the private
funding mechanism, and strike the reference to DRE.
Because there was insufficient time for DOC to fully
review the proposed amendments and provide a definitive
answer regarding its willingness to be amended into this
bill before this committee analysis was finalized, staff
suggests giving the responsibility to DOC or "a state
government entity" (the approach used in SB 1137), until
DOC has time to respond. At the time this analysis was
finalized, DOC was leaning toward agreeing; the
Department simply wanted more time before providing a
definitive answer.
b. Operative Date: As drafted, this bill would become
operative on January 1, 2013. Other bills that required
state entities to translate certain documents for use by
the lending industry had delayed operative dates, to
allow time for the forms to be translated, before
industry was required to use the translations. The
amendments suggested below would provide for a delayed
AB 1599 (Feuer), Page 11
operative date, which is based on the way in which the
operative date was specified in AB 1160 (Fong), from
2009.
c. Liability: As drafted, this bill would relieve
mortgagees, trustees, beneficiaries, and authorized
agents from liability for errors in translation, if they
use the translation prepared by DRE. This bill's
language suggests that these entities would continue to
be liable for possible content issues. This approach is
inconsistent with prior legislation. The amendments
suggested below clarify that mortgagees, trustees,
beneficiaries, and authorized agents would have no
liability for challenges to the content of the
translations, nor for errors in translation, if they use
the translations provided by DOC or the unnamed state
government entity.
d. Validity of Foreclosure Sales: As drafted, this
bill could result in the invalidation of a foreclosure,
if a court finds that a borrower was not provided with
summaries of the NOD or NTS, in English and five foreign
languages. While penalties for failure to comply with
the provisions of this bill appear warranted, penalties
that involve voiding an otherwise valid foreclosure sale
appear counterproductive to ensuring the health of
California's housing market recovery. Alternative
penalties are suggested in as part of the amendments,
below.
e. Recordation of Summaries: As currently drafted,
this bill would require six summaries (one in English,
and one in each of the five languages specified in
Section 1632) to be recorded, in addition to the document
being summarized. These recording costs will make it
more difficult for a borrower to cure his or her default.
The value of recording six summaries of a document that
is also being recorded is also unclear. The amendments
below would delete the requirement that the summaries be
recorded.
f. Will the Summaries Be Separate Documents, or Part of
the NOD and NTS? As drafted, this bill would require the
summaries to be part of the NOD and part of the NTS,
rather than separate documents. Committee staff and
author's staff discussed the pros and cons of this
AB 1599 (Feuer), Page 12
approach at length, and failed to reach a resolution.
Committee staff is concerned that, if the summaries are
included at the front of the actual documents, we run the
risk that individuals will read the summaries, and fail
to read the actual documents. The actual documents
(i.e., the NOD and NTS) are legal documents, which are
critically important to the people receiving them. It
would do a disservice to borrowers if the provision of a
summary of the NOD or NTS caused them to skip the actual
document, when something in that document could have been
useful to them.
The risk of borrowers reading the summaries and not the
documents they are describing is minimized, if the
summary is provided at the end of the document, but
providing them at the end runs the risk that they will be
overlooked.
The author's staff would like to see the summaries be part
of the NOD and NTS, out of concern that if the summary is
a separate document, it might not get provided at all, or
might become separated from the actual document, and
might become lost. An express penalty for failing to
provide the summary, and a provision allowing borrowers
to request an additional copy of their summary, if the
original is misplaced, are suggested as amendments, in an
attempt to address the concerns of author's staff.
g. Coverage and Duration: As drafted, this bill would
cover NODs and NTSs recorded on all types of property,
including commercial, multi-family residential, and
single-family residential. The author has agreed to an
amendment that would limit the application of this bill
to single-family, residential real properties containing
from one to four dwelling units.
Staff also suggests the addition of a five-year sunset, to
reflect the temporary nature of the foreclosure crisis.
The author has not agreed to this amendment.
h. Wording of the Summaries: As noted above, DOC has
expressed concern over being given the responsibility to
develop the summaries this bill requires. The Department
does not mind translating the summaries, but it does not
wish to be put in the position of deciding what the
summaries say. Committee staff suggests that the bill be
AB 1599 (Feuer), Page 13
amended to be more explicit regarding what the summaries
should include. The language in the proposed amendments
is based on what the author's staff provided, to help
clarify what the author wished included, at a minimum.
This language is offered as a starting point, and in
hopes of providing DOC with the clarity it is seeking.
The author is encouraged to further refine the language
of the summaries, to reflect his intent.
PROPOSED AMENDMENTS:
Delete the provisions of the bill, and add Section 2923.3 to
the Civil Code, to read:
2923.3. (a) A mortgagee, trustee, beneficiary, or authorized
agent shall provide a summary of key information contained
in the notice of default as an attachment to every notice of
default that is mailed to the mortgagor or trustor, with
respect to residential real property containing from one to
four dwelling units. This summary shall be provided in
English and the languages described in Section 1632.
(b) A mortgagee, trustee, beneficiary, or authorized agent
shall provide a summary of key information contained in the
notice of sale as an attachment to every notice of sale that
is mailed to the mortgagor or trustor, with respect to a
residential real property containing from one to four
dwelling units. This summary shall be provided in English
and the languages described in Section 1632.
(c) The Department of Corporations/a state government entity
shall prepare a summary of key information contained in the
notice of default, as shown below, and shall make this
summary available on its Internet web site in English and
each of the languages described in Section 1632, for use by
mortgagees, trustees, beneficiaries, and authorized agents
in complying with subdivision (a):
SUMMARY OF KEY INFORMATION CONTAINED IN THE NOTICE OF
DEFAULT
The attached notice of default was sent to �name of the
trustor],in relation to �description of the property that
secures the mortgage or deed of trust in default].
�Trustor] has breached the mortgage or deed of trust on the
property described above in the following way(s):
___________(describe property)_________________
AB 1599 (Feuer), Page 14
Insert the full statement required by subdivision (b) of
Section 2924c - It is not reproduced here in the interest of
brevity.
If you would like additional copies of this summary, you may
obtain them by calling �insert telephone number].
(d) The Department of Corporations/a state government entity
shall prepare a summary of key information contained in the
notice of sale, as shown below, and shall make this summary
available in English and each of the languages described in
Section 1632 for use by mortgagees, trustees, beneficiaries,
and authorized agents in complying with subdivision (b):
SUMMARY OF KEY INFORMATION CONTAINED IN THE NOTICE OF SALE
The attached notice of sale was sent to �trustor], in
relation to �description of the property that secures the
mortgage or deed of trust in default].
YOU ARE IN DEFAULT UNDER A
_______________________________________________,
(Deed of trust or mortgage)
DATED ____. UNLESS YOU TAKE ACTION TO PROTECT
YOUR PROPERTY, IT MAY BE SOLD AT A PUBLIC SALE.
IF
YOU NEED AN EXPLANATION OF THE NATURE OF THE
PROCEEDING AGAINST YOU, YOU SHOULD CONTACT A
LAWYER.
The total unpaid balance that is required to bring your
mortgage or deed of trust current is � ].
Your property is scheduled to be sold on �insert date and
time of sale] at �insert location of sale].
However, the sale date shown on this notice of sale may be
postponed one or more times by the mortgagee, beneficiary,
trustee, or a court, pursuant to Section 2924g of the
California Civil Code. The law requires that information
about trustee sale postponements be made available to you
and to the public, as a courtesy to those not present at the
sale. If you wish to learn whether your sale date has been
postponed, and, if applicable, the rescheduled time and date
for the sale of this property, you may call �telephone
AB 1599 (Feuer), Page 15
number for information regarding the trustee's sale] or
visit this Internet Web site �Internet Web site address for
information regarding the sale of this property], using the
file number assigned to this case �case file number].
Information about postponements that are very short in
duration or that occur close in time to the scheduled sale
may not immediately be reflected in the telephone
information or on the Internet Web site. The best way to
verify postponement information is to attend the scheduled
sale.
If you would like additional copies of this summary, you may
obtain them by calling �insert telephone number].
(e) A mortgagee, trustee, beneficiary, or authorized agent
that provides the summary statements made available by the
Department of Corporations/a state government entity
pursuant to subdivisions (c) and (d), in the manner
prescribed by this section, shall not be liable for failure
to comply with this section.
(f) A violation of this section by a mortgagee, trustee,
beneficiary, or authorized agent by a licensee of the
Department of Real Estate, Department of Corporations, or
Department of Financial Institutions shall be deemed to be a
violation of that person's licensing law. This section may
also be enforced by a government entity identified in
Section 17204 of the Business and Professions Code.
(g) Failure to comply with this section shall not affect the
validity of a notice of default or a notice of sale that
would otherwise be valid.
(h) The provisions of this bill shall become operative on
April 1, 2013, or 90 days following the issuance of summary
translations by the Department of Corporations/a state
government entity pursuant to subdivisions (c) and (d),
whichever is later.
(i) This section shall remain in effect only until January
1, 2018, and as of that date is repealed, unless a later
enacted statute, that is enacted before January 1, 2018,
deletes or extends that date.
Amend Sections 2924 and 2924f to require that each NOD and
NTS have two sentences added to them, which stated: "A
separate summary of this document must be provided in
English, Spanish, Chinese, Korean, Vietnamese, and Tagalog
to mortgagors and trustors who are in default on
single-family residential real property. If you did not
AB 1599 (Feuer), Page 16
receive that summary, or have lost or misplaced it and would
like another copy, you may request one by calling �insert
telephone number]."
10. Prior and Related Legislation:
a. SB 1137 (Perata), Chapter 69, Statutes of 2008:
Among its provisions, required the foreign language
translation and distribution of a specified notice to the
residents of properties on which notices of default were
recorded, informing them that the foreclosure process had
begun on the property, as specified.
b. AB 1160 (Fong), Chapter 274, Statutes of 2009:
Required the Departments of Corporations and Financial
Institutions to prepare specified mortgage loan summary
documents, translate those summaries into each of the
five foreign languages specified in Section 1632, and
make those translations available on their Internet Web
sites.
LIST OF REGISTERED SUPPORT/OPPOSITION
Support
30 private individuals
American Civil Liberties Union
American Civil Liberties Union
Asian Americans for Civil Rights & Equality
California Communities United Institute
California Immigrant Policy Center
California Labor Federation
Center for Responsible Lending
Central California Legal Services
Coalition for Humane Immigrant Rights of Los Angeles
Housing and Economic Rights Advocates
Law Foundation of Silicon Valley
National Housing Law Project
Southeast Asia Resource Action Center
Western Center on Law and Poverty
Western Center on Law and Poverty
Opposition
California Bankers Association
AB 1599 (Feuer), Page 17
California Association of Realtors
California Chamber of Commerce
California Credit Union League
California Independent Bankers
California Land Title Association
California Mortgage Association
California Mortgage Bankers association
United Trustees Association
Consultant: Eileen Newhall (916) 651-4102