BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 980
                                                                  Page  1

          Date of Hearing:   August 8, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                 SB 980 (Vargas) - As Introduced:  January 23, 2012 

          Policy Committee:                              JudiciaryVote:10 
          - 0 
                        Business and Professions                9 - 0 

          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              No

           SUMMARY  

          This bill extends from January 1, 2013, to January 1, 2017, the 
          sunset date on the state's prohibition against the collection of 
          upfront fees in connection with mortgage loan modifications and 
          other forms of mortgage loan forbearance.

           FISCAL EFFECT  

          There are no significant costs associated with this legislation.

           COMMENTS  

           Rationale  . In 2009, the Legislature passed and the Governor 
          signed SB 94 (Calderon), Chapter 630, Statutes of 2009, which 
          was an urgency measure prohibiting persons from charging advance 
          fees to borrowers in connection with a loan modification, and 
          requiring those who wish to charge a fee upon the completion of 
          loan modification services to first provide a specified notice 
          to borrowers regarding other options available to the borrower.  
          These provisions currently sunset on January 1, 2013. This bill 
          extends that sunset until January 1, 2017.


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081