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SB 7

  • California Senate Bill
  • 2009-2010, 2nd Special Session
  • Introduced in Senate Feb 11, 2009
  • Passed Senate Feb 14, 2009
  • Passed Assembly 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 (2)

Ellen Corbett

  • Democratic
Author

Ted Lieu

  • Democratic
Principal Coauthor

Votes


Actions


Feb 20, 2009

California State Legislature

Chaptered by Secretary of State. Chapter 4, Statutes of 2009-10 Second Extraordinary Session.

California State Legislature

Approved by Governor.

Feb 19, 2009

California State Legislature

Enrolled. To Governor at 4 p.m.

Feb 15, 2009

Assembly

In Assembly.

Assembly

Read first time.

Assembly

Art. IV, Sec. 8(b), of Constitution dispensed with.

Assembly

(Ayes 71. Noes 1. Page 51.)

Assembly

Read second time.

Assembly

Read third time. Passed. (Ayes 48. Noes 27. Page 54.) To Senate.

Senate

In Senate. To enrollment.

Feb 14, 2009

Senate

Read third time. Passed. (Ayes 24. Noes 15. Page 31.) To Assembly.

Senate

Re-referred to Com. on B. & F.R.

  • Referral-Committee
Com. on B. & F.R.

Senate

From committee: Do pass as amended. (Ayes 22. Noes 13. Page 41.)

Senate

Placed on third reading.

Senate

Read third time. Amended. (Page 29.)

Senate

Senate Rule 29.3 suspended. (Ayes 23. Noes 13. Page 28.)

Feb 12, 2009

Senate

Placed on third reading.

Senate

Read second time.

Senate

Withdrawn from committee.

Feb 11, 2009

Senate

Introduced. Read first time. To Com. on RLS.

Bill Text

Bill Text Versions Format
SB7 HTML
02/11/09 - Introduced PDF
02/14/09 - Amended Senate PDF
02/15/09 - Enrolled PDF
02/20/09 - Chaptered PDF

Related Documents

Document Format
No related documents.

Sources

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