AB 1588

Bill Subjects

Abstract

(1) Upon a breach of the obligation of a mortgage or transfer of an interest in property, existing law requires the trustee, mortgagee, or beneficiary to record in the office of the county recorder wherein the mortgaged or trust property is situated, a notice of default, and to mail the notice of default to the borrower named on the mortgage instrument. Existing law requires the notice to contain specified statements, including, but not limited to, those related to the borrower's legal rights, as specified. This bill would establish the Monitored Mortgage Workout (MMW) Program that would be offered to all borrowers to provide them with an opportunity to explore options to avoid foreclosure. This bill would require that any notice of default of a residential real property, as defined, sent to a borrower include a notice of the borrower's right to participate in the MMW Program as well as the documents that authorize the borrower to elect to participate in the MMW Program. This bill would provide for the appointment, by the Governor, subject to confirmation by the Senate, of an administrator to implement the MMW Program. This bill would require the administrator of the MMW Program to provide quarterly reports to the Legislature with specified information regarding the performance of the MMW Program. This bill would provide that, if a borrower elects to participate in the MMW Program, no further action to foreclose upon the property may be instituted until the completion of the borrower's participation in the MMW Program. (2) This bill would declare that it is to take effect immediately as an urgency statute.