California 2009-2010 Regular Session Status: Passed Assembly

AB 1639 — Facilitated Mortgage Workout Program.

Last action — Died on inactive file.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2009-2010 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

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, among other acts required prior to exercising a power of sale in a nonjudicial foreclosure proceeding. This bill would establish, contingent upon receipt of federal funding for all costs, and only until January 1, 2014, the Facilitated Mortgage Workout (FMW) Program. The program would be a process whereby borrowers and lenders would engage in conciliation sessions for purposes of developing a loan modification plan. These provisions would apply, except as specified, if the loan originated prior to January 1, 2009, the loan is the 1st mortgage or deed of trust secured by the property, the property is occupied by the borrower as the borrower's principal residence, and the unpaid principal balance is not more than $729,750. The program would require that specified information regarding the FMW Program be included with the notice of default sent to a borrower, as defined, on a loan secured by residential real property of one- to 4-family dwelling units that is the primary residence of the borrower, as specified. The bill would require that this additional notice be recorded in the office of the county recorder. By expanding the duties of county recorders, the bill would impose a state-mandated local program. The bill would provide for an administrator of the program who would be appointed by the Governor and confirmed by the Senate. The program would require a borrower who elects to participate in the program to complete a specified form and return the form to the administrator of the program not later than 30 calendar days after receiving the notice of default. The program would require the borrower to submit other information to the administrator within 15 days of requesting to participate in the program, including tax returns, income verification, a specified deposit of funds, and a letter describing the borrower's financial hardship, as specified. The program would require a borrower who elects to participate in the program to deposit with the administrator 50% of the current mortgage payment each month during participation in the FMW Program. The bill would also prohibit a mortgagee, trustee, beneficiary, or authorized agent from reporting negative credit information to a credit reporting agency about a borrower who has completed the FMW Program and accepted a mortgage loan modification. The bill would impose various administrative fees, and a specified minimum deposit, payable by the mortgagee, trustee, beneficiary, or authorized agent, or by the borrower, as specified, who participates in the FMW Program. The bill would also provide that the timelines set forth in the provision governing the exercise of the power of sale, as specified, would be suspended until the completion of the program, as specified. The bill would require the administrator of the program, among other duties, to implement rules and standards for selecting qualified neutral conciliation officers and to develop standards for forms and reports required to implement the program. The bill would also require the administrator, upon receipt of a borrower's form whereby he or she elects to participate in the program, to nominate an individual to serve as a neutral conciliation officer from a list of qualified neutral conciliation officers in the county in which the property is located. The bill would establish the compensation for a neutral conciliation officer who provides his or her services to the program and require a neutral conciliation officer to use reasonable efforts to ensure that each FMW Program is completed within 60 calendar days of the neutral conciliation officer's nomination. The bill would require the neutral conciliation officer to prepare a final report, as specified. The bill would also require, only until January 1, 2015, the administrator to report quarterly to the Legislature regarding the FMW Program, as specified. The bill would also require each mortgagee, trustee, beneficiary, or authorized agent participating in the program to post specified data about its loans on its Internet Web site. These provisions would become operative only upon the issuance of a notice from the administrator to the Governor and specified other legislative leaders, and the posting of the notice on an Internet Web site, declaring that the administrator has the capacity to make the program available to any borrower in every county who desires to participate. The bill would also make related and technical changes. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

Bill Text

Action History

  1. Died on inactive file.

  2. To inactive file on motion of Assembly Member Charles Calderon.

  3. Reconsideration granted. (Ayes 42. Noes 24. Page 5588.)

  4. Motion to reconsider made by Assembly Member Charles Calderon.

  5. Read third time, passage refused. (Ayes 38. Noes 31. Page 5587.)

  6. Read second time. To third reading.

  7. Read second time and amended. Ordered returned to second reading.

  8. From committee: Amend, and do pass as amended. (Ayes 12. Noes 5.) (May 28).

  9. In committee: Set, first hearing. Referred to APPR. suspense file.

  10. From committee: Do pass, and re-refer to Com. on APPR. Re-referred. (Ayes 7. Noes 3.) (April 22).

  11. From committee: Do pass, and re-refer to Com. on JUD. Re-referred. (Ayes 7. Noes 5.) (April 19).

  12. Joint Rule 62(a), file notice suspended. (Page 4712.)

  13. Assembly Rule 56 suspended. (Page 4712.)

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

  15. From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.

  16. Re-referred to Com. on B. & F. by unanimous consent, and then be re-referred to Com. on JUD.

  17. From committee: Be re-referred to Coms. on JUD. and B. & F. Re-referred. (Ayes 11. Noes 0.) (April 8).

  18. Re-referred to Com. on RULES by unanimous consent.

  19. Re-referred to Com. on BUDGET.

  20. From committee chair, with author's amendments: Amend, and re-refer to Com. on BUDGET. Read second time and amended.

  21. Referred to Com. on BUDGET.

  22. From printer. May be heard in committee February 11.

  23. Read first time. To print.

Sponsors

  • Bass · Cosponsor
  • DeSaulnier · Cosponsor
  • Lieu · Cosponsor
  • Monning · Cosponsor
  • Nava · Primary

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 4 co-sponsors · 117 not signed on · 3 voted No

Sponsors (1)

  • Nava

Co-sponsors (4)

  • Bass
  • DeSaulnier
  • Lieu
  • Monning

Not signed on (117)

117 members have not signed on to this bill.

Show all 117 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

AB 1639 NAVA Assembly Third Reading

Failed 45 Yea · 32 Nay · 14 Other
Party YeaNayPresentNot Voting
Unaffiliated 4331011
Democratic 1002
Republican 1101
Total 4532014
% of votes cast 49%35%0%15%
How each member voted (91)
Member Party Vote
Hagman — Nay
Bass — Yea
Charles — Yea
Evans — Yea
Feuer — Yea
De — Yea
La — Yea
Torre — Yea
De — Yea
Leon — Yea
Fong — Yea
Bonnie — Yea
Lowenthal — Yea
Salas — Yea
Saldana — Yea
John — Yea
A. — Yea
Perez — Yea
Carter — Yea
Chesbro — Yea
Bill — Nay
Fuller — Nay
Furutani — Yea
Garrick — Nay
Gilmore — Nay
Fletcher — Nay
Tom — Not Voting
Hall — Yea
Harkey — Nay
Blakeslee — Nay
Conway — Nay
Cook — Nay
Coto — Yea
Hernandez — Yea
Hill — Yea
Huber — Nay
Jeffries — Nay
Lieu — Yea
Logue — Nay
Miller — Nay
Monning — Yea
Nestande — Nay
Norby — Nay
Ruskin — Nay
Skinner — Yea
Smyth — Nay
Torlakson — Yea
Torres — Nay
Tran — Nay
Villines — Nay
V. — Not Voting
Manuel — Not Voting
Perez — Not Voting
Portantino — Not Voting
Audra — Not Voting
Solorio — Not Voting
Adams — Nay
Ammiano — Yea
Anderson — Nay
Beall — Yea
Block — Not Voting
Blumenfield — Yea
Bradford — Yea
Brownley — Yea
Buchanan — Not Voting
Hayashi — Yea
Huffman — Yea
Knight — Nay
Ma — Yea
Mendoza — Not Voting
Nava — Yea
Nielsen — Nay
Silva — Nay
Swanson — Yea
Torrico — Nay
Emmerson — Nay
Eng — Yea
Davis — Yea
DeVore — Nay
Yamada — Yea
Fuentes — Yea
Galgiani — Yea
Beth Gaines — Nay
Bill Berryhill — Nay
Bill Berryhill — Not Voting
Arambula, Joaquin Democratic Not Voting
Caballero, Anna M. Democratic Not Voting
Calderon, Lisa Democratic Yea
Jones, Brian W. Republican Yea
Niello, Roger W. Republican Nay
Strickland, Tony Republican Not Voting

Official roll call →

AB 1639 NAVA Assembly Third Reading Motion to Reconsider By CALDERON

Passed 50 Yea · 24 Nay · 17 Other
Party YeaNayPresentNot Voting
Unaffiliated 4723015
Democratic 2001
Republican 1101
Total 5024017
% of votes cast 55%26%0%19%
How each member voted (91)
Member Party Vote
Hall — Yea
Evans — Yea
Charles — Yea
Fuentes — Yea
Furutani — Yea
Galgiani — Yea
Gilmore — Nay
De — Yea
La — Yea
Torre — Yea
De — Yea
Leon — Yea
Fong — Yea
V. — Yea
Manuel — Yea
Perez — Yea
Portantino — Yea
Saldana — Yea
John — Yea
A. — Yea
Perez — Yea
Carter — Yea
Chesbro — Yea
Hagman — Nay
Harkey — Nay
Hayashi — Yea
Hill — Yea
Bill — Not Voting
Tom — Not Voting
Huber — Yea
Anderson — Nay
Conway — Nay
Cook — Nay
Coto — Yea
Davis — Yea
DeVore — Nay
Jeffries — Nay
Knight — Nay
Logue — Nay
Miller — Nay
Nava — Yea
Nestande — Nay
Norby — Nay
Ruskin — Yea
Skinner — Yea
Smyth — Nay
Swanson — Yea
Torlakson — Yea
Tran — Nay
Villines — Nay
Fletcher — Not Voting
Bonnie — Not Voting
Lowenthal — Not Voting
Salas — Not Voting
Audra — Not Voting
Mendoza — Not Voting
Nielsen — Not Voting
Torrico — Not Voting
Ammiano — Yea
Bass — Yea
Beall — Yea
Adams — Nay
Blakeslee — Nay
Block — Yea
Blumenfield — Yea
Bradford — Yea
Brownley — Not Voting
Buchanan — Yea
Hernandez — Yea
Huffman — Yea
Lieu — Not Voting
Ma — Yea
Monning — Yea
Silva — Nay
Solorio — Yea
Torres — Yea
Emmerson — Nay
Eng — Yea
Feuer — Not Voting
Yamada — Yea
Fuller — Nay
Garrick — Nay
Beth Gaines — Nay
Bill Berryhill — Not Voting
Bill Berryhill — Not Voting
Arambula, Joaquin Democratic Not Voting
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Yea
Jones, Brian W. Republican Yea
Niello, Roger W. Republican Nay
Strickland, Tony Republican Not Voting

Official roll call →

Do pass as amended.

Passed 13 Yea · 5 Nay
Party YeaNayPresentNot Voting
Unaffiliated 12500
Democratic 1000
Total 13500
% of votes cast 72%28%0%0%
How each member voted (18)
Member Party Vote
Conway — Nay
Harkey — Nay
Charles — Yea
Miller — Nay
Nielsen — Nay
Skinner — Yea
Torlakson — Yea
Ammiano — Yea
Bradford — Yea
Monning — Yea
Norby — Nay
Ruskin — Yea
Solorio — Yea
Torrico — Yea
Coto — Yea
Davis — Yea
Fuentes — Yea
Calderon, Lisa Democratic Yea

Official roll call →

Subjects

finance housing labor
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Frequently asked questions

What does AB 1639 do?
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, among other acts required prior to exercising a power of sale in a nonjudicial foreclosure proceeding. This bill would establish, contingent upon receipt of federal funding for all costs, and only until January 1, 2014, the Facilitated Mortgage Workout (FMW) Program. The program would be a process whereby borrowers and lenders would engage in conciliation sessions for purposes of developing a loan modification plan. These provisions would apply, except as specified, if the loan originated prior to January 1, 2009, the loan is the 1st mortgage or deed of trust secured by the property, the property is occupied by the borrower as the borrower's principal residence, and the unpaid principal balance is not more than $729,750. The program would require that specified information regarding the FMW Program be included with the notice of default sent to a borrower, as defined, on a loan secured by residential real property of one- to 4-family dwelling units that is the primary residence of the borrower, as specified. The bill would require that this additional notice be recorded in the office of the county recorder. By expanding the duties of county recorders, the bill would impose a state-mandated local program. The bill would provide for an administrator of the program who would be appointed by the Governor and confirmed by the Senate. The program would require a borrower who elects to participate in the program to complete a specified form and return the form to the administrator of the program not later than 30 calendar days after receiving the notice of default. The program would require the borrower to submit other information to the administrator within 15 days of requesting to participate in the program, including tax returns, income verification, a specified deposit of funds, and a letter describing the borrower's financial hardship, as specified. The program would require a borrower who elects to participate in the program to deposit with the administrator 50% of the current mortgage payment each month during participation in the FMW Program. The bill would also prohibit a mortgagee, trustee, beneficiary, or authorized agent from reporting negative credit information to a credit reporting agency about a borrower who has completed the FMW Program and accepted a mortgage loan modification. The bill would impose various administrative fees, and a specified minimum deposit, payable by the mortgagee, trustee, beneficiary, or authorized agent, or by the borrower, as specified, who participates in the FMW Program. The bill would also provide that the timelines set forth in the provision governing the exercise of the power of sale, as specified, would be suspended until the completion of the program, as specified. The bill would require the administrator of the program, among other duties, to implement rules and standards for selecting qualified neutral conciliation officers and to develop standards for forms and reports required to implement the program. The bill would also require the administrator, upon receipt of a borrower's form whereby he or she elects to participate in the program, to nominate an individual to serve as a neutral conciliation officer from a list of qualified neutral conciliation officers in the county in which the property is located. The bill would establish the compensation for a neutral conciliation officer who provides his or her services to the program and require a neutral conciliation officer to use reasonable efforts to ensure that each FMW Program is completed within 60 calendar days of the neutral conciliation officer's nomination. The bill would require the neutral conciliation officer to prepare a final report, as specified. The bill would also require, only until January 1, 2015, the administrator to report quarterly to the Legislature regarding the FMW Program, as specified. The bill would also require each mortgagee, trustee, beneficiary, or authorized agent participating in the program to post specified data about its loans on its Internet Web site. These provisions would become operative only upon the issuance of a notice from the administrator to the Governor and specified other legislative leaders, and the posting of the notice on an Internet Web site, declaring that the administrator has the capacity to make the program available to any borrower in every county who desires to participate. The bill would also make related and technical changes. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
Who sponsors AB 1639?
AB 1639 is sponsored by Bass, DeSaulnier, Lieu, Monning, and Nava.
What is the current status of AB 1639?
This bill died with 2009-2010 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 1639?
Track AB 1639 free on One Click Politics — get push/email alerts when it moves.

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