SB 306 — Real property transactions.

Summary

(1) 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, until January 1, 2013, prohibits a mortgagee, trustee, beneficiary, or authorized agent from filing a notice of default for an additional 30 days on loans made between January 1, 2003, to December 31, 2007, that secure residential real property, under certain circumstances. This bill would, until January 1, 2013, provide that these provisions apply to mortgages and deeds of trust recorded between January 1, 2003, to December 31, 2007, secured by owner-occupied residential real property containing no more than 4 dwelling units. The bill would also, among other things, revise the declaration that is required to be filed in this connection with the notice of default. (2) Existing law states legislative findings and declarations with regard to the duty loan servicers have to maximize net present value under their pooling and servicing agreements, stating that their duty is owed to all parties in a loan pool, not to any particular parties, and that a servicer acts in the best interests of all parties if it agrees to or implements a loan modification or workout plan, as specified. This bill would specify the application of these findings and declarations to certain investors. (3) Existing law requires a trustee or authorized agent, upon posting a notice of sale, to post and mail a specified notice addressed to residents of property subject to foreclosure upon posting a notice of sale. Existing law requires a notice of sale to be recorded in the county in which the property, or some part of it, is situated at least 14 days prior to the date of sale. This bill would specify how and when this notice is to be mailed. This bill would extend the time during which the notice of sale must be recorded from 14 to 20 days. (4) Existing law requires a beneficiary on a deed of trust or a mortgagee on a mortgage to prepare and deliver a beneficiary statement or a pay-off demand statement within 21 days of receipt of a written demand from specified entitled parties. Existing law requires the written statement to include information reasonably necessary to calculate the payoff amount on a per diem basis for the period of time, not to exceed 30 days, during which the per diem amount is not changed by the terms of the note. The bill would, until January 1, 2014, require a beneficiary, within 21 days of the receipt of a short-pay request, as defined, to prepare and deliver a short-pay demand statement, which would be a written statement, conditioned on the existence of a short-pay agreement, that is prepared in response to a request from an entitled person or authorized agent, setting forth an amount less than the outstanding debt, together with any terms and conditions, under which the beneficiary would execute and deliver a reconveyance of the deed of trust securing the note that is the subject of the short-pay demand statement. The bill would provide that the short-pay agreement is an agreement in writing in which the beneficiary agrees to release its lien on a property in return for payment of an amount less than the secured obligation. The bill would permit a beneficiary that elects not to proceed with the transaction that is the subject of the short-pay request to refuse to provide a short-pay demand statement, but would require that he or she provide a written statement, indicating that the beneficiary has elected not to proceed. The bill would provide that if the terms and conditions of the short-pay agreement require approval by the beneficiary of a closing statement prepared by an escrowholder, approval or disapproval shall be provided not more than 4 days after receipt by the beneficiary of the closing statement, or the closing statement shall be deemed approved, except as specified. (5) The Escrow Law provides for licensing and regulation of escrow agents, other than certain exempt persons, by the Commissioner of Corporations. The law requires licensees to apply for membership in the Escrow Agents' Fidelity Corporation, a nonprofit mutual benefit corporation, which is established to indemnify its members against loss of trust obligations. The law limits required membership in the Escrow Agents' Fidelity Corporation who engage in certain kinds of business. Existing law defines and regulates the activities of exchange facilitators and excepts from the definition of exchange facilitator escrow companies, under specified circumstances. This bill would provide escrow transactions that involve money or property held or deposited pursuant to specified actions of an exchange facilitator regarding deposit of funds are not transactions that require a licensee to have membership in the Escrow Agents' Fidelity Corporation.

Bill Text

• Chaptered 08/06/09 - Chaptered Current pdf August 06, 2009
• Enrolled 07/17/09 - Enrolled pdf July 17, 2009
• Amended 06/22/09 - Amended Assembly pdf June 22, 2009
• Amended 04/21/09 - Amended Senate pdf April 21, 2009
• Introduced 02/25/09 - Introduced pdf February 25, 2009
• SB306 View text html

Action History

1. August 06, 2009

   Chaptered by Secretary of State. Chapter 43, Statutes of 2009.

2. August 05, 2009

   Approved by Governor.

3. July 27, 2009

   Enrolled. To Governor at 11:30 a.m.

4. July 16, 2009

   Senate concurs in Assembly amendments. (Ayes 36. Noes 0. Page 1766.) To enrollment.

5. July 09, 2009

   To Special Consent Calendar.

6. July 06, 2009

   In Senate. To unfinished business.

7. July 06, 2009

   Read third time. Passed. (Ayes 78. Noes 0. Page 2390.) To Senate.

8. July 01, 2009

   Read second time. To Consent Calendar.

9. June 30, 2009

   (Heard in committee on June 30.)

10. June 30, 2009

    From committee: Do pass. To Consent Calendar. (Ayes 10. Noes 0.)

11. June 29, 2009

    (Heard in committee on June 29.)

12. June 29, 2009

    From committee: Do pass, but first be re-referred to Com. on JUD. with recommendation: To Consent Calendar. (Ayes 11. Noes 0.) Re-referred to Com. on JUD.

13. June 22, 2009

    From committee with author's amendments. Read second time. Amended. Re-referred to Com. on B. & F.

14. May 11, 2009

    To Coms. on B. & F. and JUD.

15. April 23, 2009

    In Assembly. Read first time. Held at Desk.

16. April 23, 2009

    Read third time. Passed. (Ayes 37. Noes 0. Page 622.) To Assembly.

17. April 21, 2009

    Read second time. Amended. To Consent Calendar.

18. April 20, 2009

    From committee: Do pass as amended. To Consent Calendar. (Ayes 5. Noes 0. Page 497.)

19. April 03, 2009

    Set for hearing April 14.

20. April 01, 2009

    From committee: Do pass, but first be re-referred to Com. on JUD. (Ayes 9. Noes 0. Page 396.) Re-referred to Com. on JUD.

21. March 16, 2009

    Set for hearing April 1.

22. March 09, 2009

    To Coms. on B., F. & I. and JUD.

23. February 26, 2009

    From print. May be acted upon on or after March 28.

24. February 25, 2009

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

• Calderon · Primary

Votes

Subjects