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AB 7

  • California Assembly Bill
  • 2009-2010, 2nd Special Session
  • Introduced in Assembly
  • Passed Assembly Feb 14, 2009
  • Passed Senate Feb 15, 2009
  • Governor

Residential mortgage loans: foreclosure.

Abstract

Existing law requires that, upon a breach of the obligation of a mortgage or transfer of an interest in property, the trustee, mortgagee, or beneficiary record a notice of default in the office of the county recorder where the mortgaged or trust property is situated and mail the notice of default to the mortgagor or trustor. Existing law provides that, after not less than 3 months after the filing of the notice of default, the parties described above may give notice of sale, stating the time and place of the sale, as specified. This bill, until January 1, 2011, and only with respect to specified loans that were recorded between January 1, 2003, to January 1, 2008, would prohibit a mortgagee, trustee, or other person authorized to take sale from giving a notice of sale for an additional 90 days if the loan at issue is the first mortgage or deed of trust that the property secures, the borrower occupied the property as his or her principal residence at the time the loan became delinquent, and the notice of default has been filed. The bill would exempt certain loans from this prohibition, including, upon order of the Commissioner of Corporations, the Commissioner of Financial Institutions, or the Real Estate Commissioner, as applicable, the loans of a mortgage loan servicer, as defined, if the mortgage loan servicer applies to the commissioner for an exemption indicating that it has implemented a loan modification program with specified features and the commissioner concludes that the program meets specified requirements. The bill would permit a mortgage loan servicer to submit a revised application if its application is denied, and would permit the commissioner to revoke an exemption under certain circumstances. The bill would require the commissioners to adopt regulations in this regard, as specified. The bill would require the Secretary of Business, Transportation and Housing to report to the Legislature 3 months after the first exemption is granted regarding the details of the actions on exemption of loans serviced by a mortgage loan servicer under a loan modification program and to submit subsequent reports every 6 months thereafter. The bill would require the secretary to post specified information on the exemption program on the agency's Internet Web site. The bill would provide that a person who violates these provisions is deemed to have violated his or her license law. The bill would provide that the failure to comply with the provisions described above does not invalidate a sale that is otherwise valid under specified provisions. The bill would require that a notice of sale include a declaration from the mortgage loan servicer regarding the issuance of a temporary or final order of exemption from the commissioner pursuant to these provisions and the timeframe applicable to the notice of sale. The bill would make a statement of legislative findings.

Bill Sponsors (24)

Ted Lieu

  • Democratic
Author

Marty Block

  • Democratic
Coauthor

Julia Brownley

  • Democratic
Coauthor

Wilmer Amina Carter

  • Democratic
Principal Coauthor

De Leon

Coauthor

V. Manuel Perez

Coauthor

Portantino

Coauthor

Saldana

Coauthor

Ellen Corbett

  • Democratic
Principal Coauthor

Joe Coto

  • Democratic
Coauthor

Mark DeSaulnier

  • Democratic
Coauthor

Mike Feuer

  • Democratic
Coauthor

Cathleen Galgiani

  • Democratic
  • upper
  • 5
Coauthor

Isadore Hall

  • Democratic
Coauthor

Mary Hayashi

  • Democratic
Coauthor

Jared William Huffman

  • Democratic
Coauthor

Curren D Price

  • Democratic
Principal Coauthor

Ira Ruskin

  • Democratic
Coauthor

Nancy Skinner

  • Democratic
  • upper
  • 9
Coauthor

Sandré Swanson

  • Democratic
Coauthor

Tom Torlakson

  • Democratic
Coauthor

Norma Torres

  • Democratic
Coauthor

Patricia Wiggins

  • Democratic
Coauthor

Mariko Yamada

  • Democratic
Coauthor

Votes


Actions


Feb 20, 2009

California State Legislature

Approved by the Governor.

California State Legislature

Chaptered by Secretary of State. Chapter 5, Statutes of 2009-10 Second Extraordinary Session.

Feb 19, 2009

Senate

Read third time, passed, and to Assembly. (Ayes 23. Noes 15. Page 45.)

Assembly

In Assembly. To enrollment.

California State Legislature

Enrolled and to the Governor at 11 a.m.

Feb 15, 2009

Senate

Read third time, passed, and to Assembly. (Ayes 23. Noes 15. Page 40.)

Senate

Unanimous consent granted to take up without reference to file.

Senate

Motion to reconsider made by Senator Florez.

Senate

Reconsideration granted. (Ayes 39. Noes 0. Page 40.)

Feb 14, 2009

Senate

Read second time. To third reading.

Assembly

Art. IV, Sec. 8(b) of the Constitution suspended. (Ayes 67. Noes 1. Page 43.)

Assembly

Read second time. To third reading.

Assembly

Read third time, amended, and returned to third reading. (Page 46.).

Assembly

Read third time, passed, and to Senate. (Ayes 48. Noes 27. Page 47.)

Senate

In Senate. Read first time. To Com. on RLS. for assignment.

Senate

Referred to Com. on RLS.

  • Referral-Committee
Com. on RLS.

Senate

Withdrawn from committee. Ordered placed on second reading file.

Feb 12, 2009

Assembly

From printer.

Feb 11, 2009

Assembly

Read first time. To print.

Bill Text

Bill Text Versions Format
AB7 HTML
02/11/09 - Introduced PDF
02/14/09 - Amended Assembly PDF
02/19/09 - Enrolled PDF
02/20/09 - Chaptered PDF

Related Documents

Document Format
No related documents.

Sources

Data on Open States is updated nightly from the official website of the California State Legislature.

If you notice any inconsistencies with these official sources, feel free to file an issue.