Mark Leno
- Democratic
Author
Existing law, until January 1, 2013, and as applied to mortgages and deeds of trust recorded between January 1, 2003, and December 31, 2007, that are secured by owner-occupied residential real property containing no more than 4 dwelling units, requires a mortgagee, trustee, beneficiary, or authorized agent to contact the borrower, as defined, prior to filing a notice of default, in order to assess the borrower's financial situation and explore options for the borrower to avoid foreclosure. Existing law requires the notice of default to include a specified declaration from the mortgagee, beneficiary, or authorized agent regarding its contact with the borrower. This bill would, until January 1, 2013, extend those requirements for those types of dwellings to apply to mortgages or deeds of trust recorded prior to January 1, 2009, if the loans are required to be reviewed under federal Home Affordable Modification Program (HAMP) guidelines, or between January 1, 2003, and January 1, 2009, if the loans are not required to be reviewed under HAMP guidelines. The bill would require a mortgagee, beneficiary, or authorized agent, within a specified time period prior to the filing of a notice of default, to provide the borrower with written information regarding loan modifications and a specified notice regarding the borrower's rights during the foreclosure process, subject to specified exceptions. The bill would require an unspecified state entity to make that notice available in English and specified languages. The bill would further revise the borrower contact requirements described above by requiring a mortgagee, beneficiary, or authorized agent to make reasonable borrower solicitation efforts, as specified, to explore options for the borrower to avoid foreclosure. The bill would prohibit a mortgagee, trustee, beneficiary, or authorized agent from filing a notice of default until the borrower has been evaluated and determined to be ineligible for a loan modification or the borrower has failed to submit an application prior to the passing of the deadline. The bill would specify minimum time periods in which the borrower may submit an application or supplemental information for a loan modification, and would require the mortgagee, beneficiary, or authorized agent, if it denies the application, to send a denial explanation letter within a specified time period. These requirements would not apply to a mortgagee, beneficiary, or authorized agent that has no loan modification option available to the borrower or to a grandfathered party, as defined. This bill would further require, until January 1, 2013, with respect to those properties described above, that a mortgagee, beneficiary, or authorized agent, concurrently with the filing of a notice of default, record a declaration of compliance that attests to specified facts relating to its borrower solicitation and foreclosure avoidance efforts, except as provided. The bill would authorize the borrower to bring an action within one year of the trustee sale to void the foreclosure or request an injunction if, among other things, the mortgagee, beneficiary, or authorized agent records a notice of default without completing reasonable borrower solicitation efforts, or to recover specified damages if the mortgagee, trustee, beneficiary, or authorized agent fails to record a declaration of compliance or materially comply with specified provisions, if specified conditions exist. The bill would provide that a mortgagee, trustee, beneficiary, or authorized agent shall have no civil liability if it satisfies specified requirements prior to the initiation of legal action by the borrower.
(Ayes 47. Noes. 29. Page 6841.)
From Assembly without further action.
Read third time. Refused passage. (Ayes 30. Noes 36. Page 6873.)
Reconsideration granted.
Motion to reconsider continued to August 30.
Motion to reconsider made by Assembly Member Nava.
Read third time. Refused passage. (Ayes 27. Noes 38. Page 6610.)
Read second time. To third reading.
Read second time. Amended. To second reading.
(Heard in committe August 12.)
From committee: Do pass as amended. (Ayes 9. Noes 7.)
Set, first hearing. Referred to APPR. suspense file.
From committee with author's amendments. Read second time. Amended. Re-referred to Com. on APPR.
From committee: Do pass, but first be re-referred to Com. on APPR. (Ayes 7. Noes 3.) Re-referred to Com. on APPR.
(Heard in committee on June 29.)
From committee with author's amendments. Read second time. Amended. Re-referred to Com. on JUD.
(Heard in committee on June 21.)
From committee: Do pass, but first be re-referred to Com. on JUD. (Ayes 7. Noes 4.) Re-referred to Com. on JUD.
From committee with author's amendments. Read second time. Amended. Re-referred to Com. on B. & F.
To Coms. on B. & F. and JUD.
Read third time. Passed. (Ayes 21. Noes 12. Page 3785.) To Assembly.
In Assembly. Read first time. Held at Desk.
From committee: That the measure be returned to the Senate Floor for consideration. (Ayes 6. Noes 5. Page 3752.)
Placed on third reading.
From committee: Be re-referred to Com. on B., F. & I. pursuant to Senate Rule 29.10. (Ayes 3. Noes 0. Page 3692.) Re-referred to Com. on B., F. & I.
Re-referred to Com. on RLS. pursuant to Senate Rule 29.10.
Read second time. To third reading.
Read third time. Amended. To second reading.
Read second time. To third reading.
From committee: Do pass. (Ayes 6. Noes 4. Page 3594.)
From committee with author's amendments. Read second time. Amended. Re-referred to Com. on APPR.
Set for hearing May 24.
Set, first hearing. Hearing canceled at the request of author.
Set for hearing May 17.
Read second time. Amended. Re-referred to Com. on APPR.
From committee: Do pass as amended, but first amend, and re-refer to Com. on APPR. (Ayes 3. Noes 1. Page 3305.)
Set for hearing April 20.
From committee with author's amendments. Read second time. Amended. Re-referred to Com. on JUD.
From committee: Do pass, but first be re-referred to Com. on JUD. (Ayes 7. Noes 2.) Re-referred to Com. on JUD.
Set for hearing April 7.
To Coms. on B., F. & I. and JUD.
From print. May be acted upon on or after March 22.
Introduced. Read first time. To Com. on RLS. for assignment. To print.
| Bill Text Versions | Format |
|---|---|
| SB1275 | HTML |
| 02/19/10 - Introduced | |
| 04/08/10 - Amended Senate | |
| 04/28/10 - Amended Senate | |
| 05/18/10 - Amended Senate | |
| 05/27/10 - Amended Senate | |
| 06/10/10 - Amended Assembly | |
| 06/23/10 - Amended Assembly | |
| 08/02/10 - Amended Assembly | |
| 08/16/10 - Amended Assembly |
| Document | Format |
|---|---|
| No related documents. |
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