BILL ANALYSIS �
AB 1599
Page 1
( Without Reference to File )
CONCURRENCE IN SENATE AMENDMENTS
AB 1599 (Feuer and Fong)
As Amended August 30, 2012
Majority vote
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|ASSEMBLY: |49-25|(May 21, 2012) |SENATE: |29-9 |(August 31, |
| | | | | |2012) |
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Original Committee Reference: JUD.
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 notice of
default, and a summary of the notice of sale, attached to a
copy of the notice of sale, in English and the languages
described in Civil Code Section 1632.
2)Provides that the Department of Corporations (DOC) shall make
available standard summary translation in the languages
described in Civil Code Section 1632, and shall make those
translations available without charge on its Internet Web
site.
The Senate amendments narrow and clarify the measure.
AS PASSED BY THE ASSEMBLY , this bill was substantially similar
to the version approved by the Senate.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
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.
AB 1599
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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
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.
AB 1599
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Analysis Prepared by : Kevin G. Baker / JUD. / (916) 319-2334
FN: 0005878