Mark Leno
- Democratic
Author
Existing law imposes various requirements to be satisfied prior to exercising a power of sale under a mortgage or deed of trust. Existing law gives a borrower, as defined, various rights and remedies against a mortgage servicer, mortgagee, trustee, beneficiary, and authorized agent in regards to foreclosure prevention alternatives, as defined, including loan modifications, which is commonly referred to as being part of the California Homeowner Bill of Rights. Existing law defines a mortgage servicer as a person or entity who directly services a loan, or is responsible for interacting with the borrower, and managing the loan account on a daily basis, as specified. This bill until January 1, 2020, would prohibit a mortgage servicer, upon notification that a borrower has died, from recording a notice of default until the mortgage servicer does certain things, including requesting reasonable documentation of the death of the borrower from a claimant, who is someone claiming to be a successor in interest, who is not a party to the loan or promissory note and providing a reasonable period of time for the claimant to present the requested documentation. The bill would deem a claimant a successor in interest, as defined, upon receipt by a mortgage servicer of the reasonable documentation regarding the status of the claimant as a successor in interest and the claimant's ownership interest in the real property. The bill would require a mortgage servicer, within 10 days of a claimant being deemed a successor in interest, to provide the successor in interest with information about the loan, as specified. The bill would require a mortgage servicer to allow a successor in interest to assume the deceased borrower's loan or to apply for foreclosure prevention alternatives on an assumable loan, as specified. The bill would authorize a mortgage servicer, when there are multiple successors in interest who do not wish to proceed as coborrowers or coapplicants, to require any nonapplicant successor in interest to consent in writing to the application for a loan assumption. The bill would provide that a successor in interest, as specified, who assumes an assumable loan and wishes to apply for a foreclosure prevention alternative has the same rights and remedies as a borrower under specified provisions of the California Homeowner Bill of Rights. The bill would authorize a successor in interest to bring an action for injunctive relief to enjoin a material violation of specified provisions of law and would authorize a court to award a prevailing successor in interest reasonable attorney's fees and costs for the action. The bill would define terms for these purposes and make various findings and declarations. The bill would deem a mortgage servicer, mortgagee, or beneficiary of the deed of trust, or an agent thereof, to be in compliance with the above-described provisions if they comply with specified federal laws. The bill would exempt certain depository institutions and persons from these provisions, as specified.
Approved by the Governor.
Chaptered by Secretary of State. Chapter 838, Statutes of 2016.
Enrolled and presented to the Governor at 1:30 p.m.
Assembly amendments concurred in. (Ayes 22. Noes 13. Page 5373.) Ordered to engrossing and enrolling.
In Senate. Concurrence in Assembly amendments pending.
Read third time. Passed. (Ayes 49. Noes 26. Page 6012.) Ordered to the Senate.
Read third time and amended. (Ayes 73. Noes 0. Page 5949.)
Ordered to third reading.
Read third time and amended.
Ordered to third reading.
Read second time. Ordered to third reading.
Read second time and amended. Ordered to second reading.
From committee: Do pass as amended. (Ayes 7. Noes 3.) (June 28).
Read second time and amended. Re-referred to Com. on JUD.
From committee: Do pass as amended and re-refer to Com. on JUD. (Ayes 8. Noes 2.) (June 20).
From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.
In Assembly. Read first time. Held at Desk.
Read third time. Passed. (Ayes 21. Noes 14. Page 4083.) Ordered to the Assembly.
Reconsideration granted. (Ayes 37. Noes 0. Page 4066.)
Read third time. Refused passage. (Ayes 18. Noes 18. Page 4065.)
Motion to reconsider made by Senator Leno.
Read second time. Ordered to third reading.
Ordered to second reading.
Read third time and amended.
Read second time. Ordered to third reading.
Read third time and amended.
Ordered to second reading.
Read second time and amended. Ordered to third reading.
From committee: Do pass as amended. (Ayes 4. Noes 1. Page 3766.) (May 3).
From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.
Set for hearing May 3.
From committee: Do pass and re-refer to Com. on JUD. (Ayes 4. Noes 3. Page 3606.) (April 20). Re-referred to Com. on JUD.
Set for hearing April 20.
April 6 set for first hearing canceled at the request of author.
From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.I.
Set for hearing April 6.
From printer. May be acted upon on or after March 20.
Introduced. Read first time. To Com. on RLS. for assignment. To print.
| Bill Text Versions | Format |
|---|---|
| SB1150 | HTML |
| 02/18/16 - Introduced | |
| 03/28/16 - Amended Senate | |
| 04/26/16 - Amended Senate | |
| 05/10/16 - Amended Senate | |
| 05/16/16 - Amended Senate | |
| 05/26/16 - Amended Senate | |
| 06/13/16 - Amended Assembly | |
| 06/23/16 - Amended Assembly | |
| 06/30/16 - Amended Assembly | |
| 08/15/16 - Amended Assembly | |
| 08/19/16 - Amended Assembly | |
| 08/26/16 - Enrolled | |
| 09/29/16 - Chaptered |
| Document | Format |
|---|---|
| No related documents. |
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