Mortgages and deeds of trust: foreclosure.
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AB 278 — Mortgages and deeds of trust: foreclosure.
Last action — Chaptered by Secretary of State - Chapter 86, Statutes of 2012.
No card. One bill, free forever — alerts when it moves.
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✓Introduced
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✓In Committee
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✓Passed Assembly
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✓Passed Senate
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced February 08, 2011. Enacted.
Prognosis
Where this bill stands today.
Odds of enactment
HighHow often bills like it became law.
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Enacted
Current position in the legislative process.
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15 sponsors
1 primary, 14 co-sponsors signed on.
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Single-party support
Sponsorship is currently within one party (1 D).
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Mixed recorded votes
7 passed, 1 failed in recorded votes so far.
Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.
Summary
(1) Existing law, until January 1, 2013, requires a mortgagee, trustee, beneficiary, or authorized agent to contact the borrower prior to filing a notice of default to explore options for the borrower to avoid foreclosure, as specified. Existing law requires a notice of default or, in certain circumstances, a notice of sale, to include a declaration stating that the mortgagee, trustee, beneficiary, or authorized agent has contacted the borrower, or has tried with due diligence to contact the borrower, or that no contact was required for a specified reason. This bill would add mortgage servicers, as defined, to these provisions and would extend the operation of these provisions indefinitely, except that it would delete the requirement with respect to a notice of sale. The bill would, until January 1, 2018, additionally require the borrower, as defined, to be provided with specified information in writing prior to recordation of a notice of default and, in certain circumstances, within 5 business days after recordation. The bill would prohibit a mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent from recording a notice of default or, until January 1, 2018, recording a notice of sale or conducting a trustee's sale while a complete first lien loan modification application is pending, under specified conditions. The bill would, until January 1, 2018, establish additional procedures to be followed regarding a first lien loan modification application, the denial of an application, and a borrower's right to appeal a denial. (2) Existing law imposes various requirements that must be satisfied prior to exercising a power of sale under a mortgage or deed of trust, including, among other things, recording a notice of default and a notice of sale. The bill would, until January 1, 2018, require a written notice to the borrower after the postponement of a foreclosure sale in order to advise the borrower of any new sale date and time, as specified. The bill would provide that an entity shall not record a notice of default or otherwise initiate the foreclosure process unless it is the holder of the beneficial interest under the deed of trust, the original or substituted trustee, or the designated agent of the holder of the beneficial interest, as specified. The bill would prohibit recordation of a notice of default or a notice of sale or the conduct of a trustee's sale if a foreclosure prevention alternative has been approved and certain conditions exist and would, until January 1, 2018, require recordation of a rescission of those notices upon execution of a permanent foreclosure prevention alternative. The bill would, until January 1, 2018, prohibit the collection of application fees and the collection of late fees while a foreclosure prevention alternative is being considered, if certain criteria are met, and would require a subsequent mortgage servicer to honor any previously approved foreclosure prevention alternative. The bill would authorize a borrower to seek an injunction and damages for violations of certain of the provisions described above, except as specified. The bill would authorize the greater of treble actual damages or $50,000 in statutory damages if a violation of certain provisions is found to be intentional or reckless or resulted from willful misconduct, as specified. The bill would authorize the awarding of attorneys' fees for prevailing borrowers, as specified. Violations of these provisions by licensees of the Department of Corporations, the Department of Financial Institutions, and the Department of Real Estate would also be violations of those respective licensing laws. Because a violation of certain of those licensing laws is a crime, the bill would impose a state-mandated local program. The bill would provide that the requirements imposed on mortgage servicers, and mortgagees, trustees, beneficiaries, and authorized agents, described above are applicable only to mortgages or deeds of trust secured by residential real property not exceeding 4 dwelling units that is owner-occupied, as defined, and, until January 1, 2018, only to those entities who conduct more than 175 foreclosure sales per year or annual reporting period, except as specified. The bill would require, upon request from a borrower who requests a foreclosure prevention alternative, a mortgage servicer who conducts more than 175 foreclosure sales per year or annual reporting period to establish a single point of contact and provide the borrower with one or more direct means of communication with the single point of contact. The bill would specify various responsibilities of the single point of contact. The bill would define single point of contact for these purposes. (3) Existing law prescribes documents that may be recorded or filed in court. This bill would require that a specified declaration, notice of default, notice of sale, deed of trust, assignment of a deed of trust, substitution of trustee, or declaration or affidavit filed in any court relative to a foreclosure proceeding or recorded by or on behalf of a mortgage servicer shall be accurate and complete and supported by competent and reliable evidence. The bill would require that before recording or filing any of those documents, a mortgage servicer shall ensure that it has reviewed competent and reliable evidence to substantiate the borrower's default and the right to foreclose, including the borrower's loan status and loan information. The bill would, until January 1, 2018, provide that any mortgage servicer that engages in multiple and repeated violations of these requirements shall be liable for a civil penalty of up to $7,500 per mortgage or deed of trust, in an action brought by specified state and local government entities, and would also authorize administrative enforcement against licensees of the Department of Corporations, the Department of Financial Institutions, and the Department of Real Estate. The bill would authorize the Department of Corporations, the Department of Financial Institutions, and the Department of Real Estate to adopt regulations applicable to persons and entities under their respective jurisdictions for purposes of the provisions described above. The bill would provide that a violation of those regulations would be enforceable only by the regulating agency. (4)   The bill would state findings and declarations of the Legislature in relation to foreclosures in the state generally, and would state the purposes of the bill. (5) 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 no reimbursement is required by this act for a specified reason.
Bill Text
- Chaptered 07/11/12 - Chaptered Current pdf July 11, 2012
- Enrolled 07/05/12 - Enrolled pdf July 05, 2012
- Amended 09/01/11 - Amended Senate pdf September 01, 2011
- Amended 06/23/11 - Amended Senate pdf June 23, 2011
- Introduced 02/08/11 - Introduced pdf February 08, 2011
- AB278 View text html
Action History
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Chaptered by Secretary of State - Chapter 86, Statutes of 2012.
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Approved by the Governor.
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Enrolled and presented to the Governor at 2:15 p.m.
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Ordered to Engrossing and Enrolling.
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Senate adopted Conference Committee report. (Ayes 25. Noes 13. Page 4221.)
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Assembly adopts Conference Committee report. (Ayes 54. Noes 26. Page 5549.).
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From printer.
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From Conference Committee: Be adopted. Assembly (Ayes 2 (Eng and Feuer). Noes 1 (Wagner)). Senate (Ayes 2 (Evans and Calderon). Noes 0.)). To print.
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Joint Rule 29.5(a) suspended. (Ayes 37. Noes 0. Page 3498.)
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In Senate:
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Joint Rule 29.5(a) suspended. (Ayes 72. Noes 0. Page 4808.)
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In Assembly:
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Senators Evans, Calderon, and Blakeslee appointed to Conference Committee.
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Senators Evans, Vargas, and Blakeslee appointed to Conference Committee.
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Assembly Members Eng, Feuer, and Wagner appointed to Conference Committee.
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Assembly refused to concur in Senate amendments. To Conference Committee. (Ayes 5. Noes 57. Page 4482.)
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In Assembly. Concurrence in Senate amendments pending. May be considered on or after April 21 pursuant to Assembly Rule 77.
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Read third time. Passed. Ordered to the Assembly. (Ayes 23. Noes 13. Page 3219.).
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Read second time. Ordered to third reading.
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Ordered to second reading.
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From inactive file.
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Ordered to inactive file at the request of Senator Price.
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Read second time. Ordered to third reading.
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Read third time and amended. Ordered to second reading.
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Read second time. Ordered to third reading.
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From committee: Be placed on second reading file pursuant to Senate Rule 28.8.
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Read second time and amended. Re-referred to Com. on APPR.
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From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (June 21).
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Referred to Com. on B., P. & E.D.
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In Senate. Read first time. To Com. on RLS. for assignment.
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Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 1505.)
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Read second time. Ordered to third reading.
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From committee: Do pass. (Ayes 17. Noes 0.) (May 18).
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From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (May 3). Re-referred to Com. on APPR.
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In committee: Hearing postponed by committee.
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Referred to Com. on B., P. & C.P.
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From printer. May be heard in committee March 11.
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Read first time. To print.
Sponsors
- Lisa Calderon · Cosponsor
- Carter · Cosponsor
- Mitchell · Cosponsor
- Corbett · Cosponsor
- Davis · Cosponsor
- DeSaulnier · Cosponsor
- Eng · Primary
- Evans · Cosponsor
- Feuer · Cosponsor
- Hancock · Cosponsor
- Leno · Cosponsor
- Pavley · Cosponsor
- Skinner · Cosponsor
- Steinberg · Cosponsor
- V. Manuel Pérez · Cosponsor
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 14 co-sponsors · 107 not signed on · 8 voted No
Sponsors (1)
- Eng
Co-sponsors (14)
- Calderon, Lisa Democratic
- Carter
- Mitchell
- Corbett
- Davis
- DeSaulnier
- Evans
- Feuer
- Hancock
- Leno
- Pavley
- Skinner
- Steinberg
- V. Manuel Pérez Voted No
Not signed on (107)
107 members have not signed on to this bill.
Show all 107 →"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.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 23 | 12 | 0 | 2 |
| Democratic | 2 | 0 | 0 | 0 |
| Republican | 0 | 1 | 0 | 0 |
| Total | 25 | 13 | 0 | 2 |
| % of votes cast | 63% | 33% | 0% | 5% |
How each member voted (40)
| Member | Party | Vote |
|---|---|---|
| Yee | — | Yea |
| Wyland | — | Nay |
| Lowenthal | — | Yea |
| De León | — | Yea |
| Negrete McLeod | — | Yea |
| Rubio | — | Yea |
| Evans | — | Yea |
| Cannella | — | Nay |
| Fuller | — | Nay |
| Hancock | — | Yea |
| Harman | — | Nay |
| Dutton | — | Nay |
| Runner | — | Not Voting |
| Huff | — | Nay |
| Anderson | — | Nay |
| Blakeslee | — | Nay |
| Kehoe | — | Yea |
| Leno | — | Yea |
| Liu | — | Yea |
| Price | — | Yea |
| Simitian | — | Yea |
| Vargas | — | Yea |
| Walters | — | Nay |
| Wolk | — | Yea |
| Wright | — | Yea |
| Alquist | — | Yea |
| Hernandez | — | Yea |
| Lieu | — | Yea |
| Pavley | — | Yea |
| Steinberg | — | Yea |
| Corbett | — | Yea |
| Emmerson | — | Not Voting |
| Correa | — | Yea |
| DeSaulnier | — | Yea |
| Beth Gaines | — | Nay |
| Bill Berryhill | — | Nay |
| La Malfa | — | Nay |
| Calderon, Lisa | Democratic | Yea |
| Padilla, Stephen C. | Democratic | Yea |
| Strickland, Tony | Republican | Nay |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 53 | 24 | 0 | 0 |
| Republican | 0 | 2 | 0 | 0 |
| Democratic | 1 | 0 | 0 | 0 |
| Total | 54 | 26 | 0 | 0 |
| % of votes cast | 68% | 33% | 0% | 0% |
How each member voted (80)
| Member | Party | Vote |
|---|---|---|
| Gordon | — | Yea |
| Hagman | — | Nay |
| Eng | — | Yea |
| Butler | — | Yea |
| Feuer | — | Yea |
| Fuentes | — | Yea |
| Furutani | — | Yea |
| Gatto | — | Yea |
| Hill | — | Yea |
| Huber | — | Yea |
| Fong | — | Yea |
| Allen | — | Yea |
| Cedillo | — | Yea |
| Perea | — | Yea |
| Skinner | — | Yea |
| Swanson | — | Yea |
| Portantino | — | Yea |
| John A. Pérez | — | Yea |
| Mitchell | — | Yea |
| Galgiani | — | Yea |
| Fletcher | — | Yea |
| Garrick | — | Nay |
| Gorell | — | Nay |
| Campos | — | Yea |
| Bonilla | — | Yea |
| Atkins | — | Yea |
| Halderman | — | Nay |
| Hall | — | Yea |
| Hayashi | — | Yea |
| Huffman | — | Yea |
| Jeffries | — | Yea |
| Lara | — | Yea |
| Logue | — | Nay |
| Ammiano | — | Yea |
| Beall | — | Yea |
| Chesbro | — | Yea |
| Conway | — | Nay |
| Cook | — | Nay |
| Davis | — | Yea |
| Donnelly | — | Nay |
| Mendoza | — | Yea |
| Miller | — | Nay |
| Monning | — | Yea |
| Morrell | — | Nay |
| Nielsen | — | Nay |
| Norby | — | Nay |
| Pan | — | Yea |
| Silva | — | Nay |
| Solorio | — | Yea |
| Torres | — | Yea |
| Valadao | — | Nay |
| Wieckowski | — | Yea |
| Achadjian | — | Nay |
| Alejo | — | Yea |
| Block | — | Yea |
| Blumenfield | — | Yea |
| Bradford | — | Yea |
| Brownley | — | Yea |
| Buchanan | — | Yea |
| Harkey | — | Nay |
| Hueso | — | Yea |
| Knight | — | Nay |
| Ma | — | Yea |
| Mansoor | — | Nay |
| Nestande | — | Nay |
| Olsen | — | Nay |
| Smyth | — | Nay |
| Wagner | — | Nay |
| Williams | — | Yea |
| Carter | — | Yea |
| Dickinson | — | Yea |
| Yamada | — | Yea |
| Beth Gaines | — | Nay |
| Bill Berryhill | — | Nay |
| Bonnie Lowenthal | — | Yea |
| Roger Hernández | — | Yea |
| V. Manuel Pérez | — | Yea |
| Calderon, Lisa | Democratic | Yea |
| Grove, Shannon | Republican | Nay |
| Jones, Brian W. | Republican | Nay |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Republican | 0 | 2 | 0 | 0 |
| Unaffiliated | 5 | 55 | 0 | 17 |
| Democratic | 0 | 0 | 0 | 1 |
| Total | 5 | 57 | 0 | 18 |
| % of votes cast | 6% | 71% | 0% | 23% |
How each member voted (80)
| Member | Party | Vote |
|---|---|---|
| Butler | — | Yea |
| Furutani | — | Not Voting |
| Fong | — | Nay |
| Campos | — | Nay |
| Allen | — | Nay |
| Galgiani | — | Nay |
| Gatto | — | Nay |
| Gordon | — | Nay |
| Carter | — | Nay |
| Portantino | — | Nay |
| John A. Pérez | — | Nay |
| Mitchell | — | Nay |
| Gorell | — | Nay |
| Hagman | — | Nay |
| Cedillo | — | Not Voting |
| Hall | — | Nay |
| Bonilla | — | Nay |
| Atkins | — | Nay |
| Hayashi | — | Nay |
| Hill | — | Nay |
| Hueso | — | Nay |
| Huffman | — | Nay |
| Fletcher | — | Not Voting |
| Knight | — | Not Voting |
| Lara | — | Nay |
| Ammiano | — | Nay |
| Beall | — | Nay |
| Chesbro | — | Nay |
| Cook | — | Not Voting |
| Davis | — | Not Voting |
| Dickinson | — | Nay |
| Donnelly | — | Nay |
| Mendoza | — | Not Voting |
| Miller | — | Nay |
| Monning | — | Nay |
| Morrell | — | Nay |
| Nestande | — | Not Voting |
| Norby | — | Nay |
| Pan | — | Nay |
| Perea | — | Nay |
| Skinner | — | Nay |
| Smyth | — | Not Voting |
| Swanson | — | Nay |
| Torres | — | Nay |
| Wieckowski | — | Nay |
| Williams | — | Nay |
| Halderman | — | Not Voting |
| Conway | — | Not Voting |
| Nielsen | — | Not Voting |
| Achadjian | — | Nay |
| Alejo | — | Nay |
| Block | — | Nay |
| Blumenfield | — | Nay |
| Bradford | — | Nay |
| Brownley | — | Not Voting |
| Buchanan | — | Nay |
| Harkey | — | Nay |
| Huber | — | Nay |
| Jeffries | — | Nay |
| Logue | — | Yea |
| Ma | — | Nay |
| Mansoor | — | Nay |
| Olsen | — | Not Voting |
| Silva | — | Not Voting |
| Solorio | — | Yea |
| Valadao | — | Not Voting |
| Wagner | — | Nay |
| Eng | — | Nay |
| Feuer | — | Yea |
| Fuentes | — | Yea |
| Garrick | — | Not Voting |
| Yamada | — | Nay |
| Beth Gaines | — | Nay |
| Bill Berryhill | — | Nay |
| Bonnie Lowenthal | — | Nay |
| Roger Hernández | — | Nay |
| V. Manuel Pérez | — | Nay |
| Calderon, Lisa | Democratic | Not Voting |
| Grove, Shannon | Republican | Nay |
| Jones, Brian W. | Republican | Nay |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 21 | 12 | 0 | 4 |
| Democratic | 2 | 0 | 0 | 0 |
| Republican | 0 | 1 | 0 | 0 |
| Total | 23 | 13 | 0 | 4 |
| % of votes cast | 58% | 33% | 0% | 10% |
How each member voted (40)
| Member | Party | Vote |
|---|---|---|
| Yee | — | Yea |
| Hancock | — | Yea |
| Hernandez | — | Yea |
| Lowenthal | — | Yea |
| De León | — | Yea |
| Kehoe | — | Yea |
| Simitian | — | Yea |
| Wolk | — | Yea |
| Wright | — | Yea |
| Negrete McLeod | — | Yea |
| Rubio | — | Yea |
| Cannella | — | Nay |
| Evans | — | Yea |
| Runner | — | Not Voting |
| Fuller | — | Nay |
| Dutton | — | Not Voting |
| Huff | — | Nay |
| Anderson | — | Nay |
| Liu | — | Not Voting |
| Vargas | — | Yea |
| Walters | — | Nay |
| Alquist | — | Yea |
| Blakeslee | — | Nay |
| Harman | — | Nay |
| Leno | — | Yea |
| Lieu | — | Not Voting |
| Pavley | — | Yea |
| Price | — | Yea |
| Steinberg | — | Yea |
| Wyland | — | Nay |
| Corbett | — | Yea |
| Emmerson | — | Nay |
| Correa | — | Yea |
| DeSaulnier | — | Yea |
| Beth Gaines | — | Nay |
| Bill Berryhill | — | Nay |
| La Malfa | — | Nay |
| Calderon, Lisa | Democratic | Yea |
| Padilla, Stephen C. | Democratic | Yea |
| Strickland, Tony | Republican | Nay |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 9 | 0 | 0 | 0 |
| Total | 9 | 0 | 0 | 0 |
| % of votes cast | 100% | 0% | 0% | 0% |
How each member voted (9)
| Member | Party | Vote |
|---|---|---|
| Wyland | — | Yea |
| Corbett | — | Yea |
| Negrete McLeod | — | Yea |
| Hernandez | — | Yea |
| Vargas | — | Yea |
| Walters | — | Yea |
| Price | — | Yea |
| Emmerson | — | Yea |
| Correa | — | Yea |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 75 | 0 | 0 | 2 |
| Democratic | 1 | 0 | 0 | 0 |
| Republican | 2 | 0 | 0 | 0 |
| Total | 78 | 0 | 0 | 2 |
| % of votes cast | 98% | 0% | 0% | 3% |
How each member voted (80)
| Member | Party | Vote |
|---|---|---|
| Gorell | — | Not Voting |
| Butler | — | Yea |
| Hagman | — | Yea |
| Hill | — | Yea |
| Hueso | — | Yea |
| Jeffries | — | Yea |
| John A. Pérez | — | Yea |
| Mitchell | — | Yea |
| Atkins | — | Yea |
| Carter | — | Yea |
| Chesbro | — | Yea |
| Dickinson | — | Yea |
| Pan | — | Yea |
| Wagner | — | Yea |
| Yamada | — | Yea |
| Feuer | — | Yea |
| Furutani | — | Yea |
| Campos | — | Yea |
| Galgiani | — | Yea |
| Gatto | — | Yea |
| Cedillo | — | Yea |
| Portantino | — | Yea |
| Gordon | — | Yea |
| Allen | — | Yea |
| Halderman | — | Yea |
| Hall | — | Yea |
| Bonilla | — | Yea |
| Hayashi | — | Yea |
| Fong | — | Yea |
| Fletcher | — | Yea |
| Conway | — | Yea |
| Huffman | — | Yea |
| Logue | — | Yea |
| Mendoza | — | Yea |
| Alejo | — | Yea |
| Beall | — | Yea |
| Block | — | Yea |
| Cook | — | Not Voting |
| Davis | — | Yea |
| Donnelly | — | Yea |
| Monning | — | Yea |
| Morrell | — | Yea |
| Nestande | — | Yea |
| Norby | — | Yea |
| Silva | — | Yea |
| Skinner | — | Yea |
| Solorio | — | Yea |
| Swanson | — | Yea |
| Valadao | — | Yea |
| Wieckowski | — | Yea |
| Achadjian | — | Yea |
| Ammiano | — | Yea |
| Blumenfield | — | Yea |
| Bradford | — | Yea |
| Brownley | — | Yea |
| Buchanan | — | Yea |
| Harkey | — | Yea |
| Huber | — | Yea |
| Knight | — | Yea |
| Lara | — | Yea |
| Ma | — | Yea |
| Mansoor | — | Yea |
| Miller | — | Yea |
| Nielsen | — | Yea |
| Olsen | — | Yea |
| Perea | — | Yea |
| Smyth | — | Yea |
| Torres | — | Yea |
| Williams | — | Yea |
| Eng | — | Yea |
| Fuentes | — | Yea |
| Garrick | — | Yea |
| Beth Gaines | — | Yea |
| Bill Berryhill | — | Yea |
| Bonnie Lowenthal | — | Yea |
| Roger Hernández | — | Yea |
| V. Manuel Pérez | — | Yea |
| Calderon, Lisa | Democratic | Yea |
| Grove, Shannon | Republican | Yea |
| Jones, Brian W. | Republican | Yea |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 16 | 0 | 0 | 0 |
| Democratic | 1 | 0 | 0 | 0 |
| Total | 17 | 0 | 0 | 0 |
| % of votes cast | 100% | 0% | 0% | 0% |
How each member voted (17)
| Member | Party | Vote |
|---|---|---|
| Campos | — | Yea |
| Fuentes | — | Yea |
| Gatto | — | Yea |
| Hall | — | Yea |
| Harkey | — | Yea |
| Hill | — | Yea |
| Mitchell | — | Yea |
| Davis | — | Yea |
| Lara | — | Yea |
| Donnelly | — | Yea |
| Blumenfield | — | Yea |
| Bradford | — | Yea |
| Nielsen | — | Yea |
| Smyth | — | Yea |
| Solorio | — | Yea |
| Wagner | — | Yea |
| Calderon, Lisa | Democratic | Yea |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 8 | 0 | 0 | 0 |
| Democratic | 1 | 0 | 0 | 0 |
| Total | 9 | 0 | 0 | 0 |
| % of votes cast | 100% | 0% | 0% | 0% |
How each member voted (9)
| Member | Party | Vote |
|---|---|---|
| Eng | — | Yea |
| Hagman | — | Yea |
| Butler | — | Yea |
| Hill | — | Yea |
| Hayashi | — | Yea |
| Ma | — | Yea |
| Smyth | — | Yea |
| Bill Berryhill | — | Yea |
| Allen, Benjamin | Democratic | Yea |
Subjects
Frequently asked questions
- What does AB 278 do?
- (1) Existing law, until January 1, 2013, requires a mortgagee, trustee, beneficiary, or authorized agent to contact the borrower prior to filing a notice of default to explore options for the borrower to avoid foreclosure, as specified. Existing law requires a notice of default or, in certain circumstances, a notice of sale, to include a declaration stating that the mortgagee, trustee, beneficiary, or authorized agent has contacted the borrower, or has tried with due diligence to contact the borrower, or that no contact was required for a specified reason. This bill would add mortgage servicers, as defined, to these provisions and would extend the operation of these provisions indefinitely, except that it would delete the requirement with respect to a notice of sale. The bill would, until January 1, 2018, additionally require the borrower, as defined, to be provided with specified information in writing prior to recordation of a notice of default and, in certain circumstances, within 5 business days after recordation. The bill would prohibit a mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent from recording a notice of default or, until January 1, 2018, recording a notice of sale or conducting a trustee's sale while a complete first lien loan modification application is pending, under specified conditions. The bill would, until January 1, 2018, establish additional procedures to be followed regarding a first lien loan modification application, the denial of an application, and a borrower's right to appeal a denial. (2) Existing law imposes various requirements that must be satisfied prior to exercising a power of sale under a mortgage or deed of trust, including, among other things, recording a notice of default and a notice of sale. The bill would, until January 1, 2018, require a written notice to the borrower after the postponement of a foreclosure sale in order to advise the borrower of any new sale date and time, as specified. The bill would provide that an entity shall not record a notice of default or otherwise initiate the foreclosure process unless it is the holder of the beneficial interest under the deed of trust, the original or substituted trustee, or the designated agent of the holder of the beneficial interest, as specified. The bill would prohibit recordation of a notice of default or a notice of sale or the conduct of a trustee's sale if a foreclosure prevention alternative has been approved and certain conditions exist and would, until January 1, 2018, require recordation of a rescission of those notices upon execution of a permanent foreclosure prevention alternative. The bill would, until January 1, 2018, prohibit the collection of application fees and the collection of late fees while a foreclosure prevention alternative is being considered, if certain criteria are met, and would require a subsequent mortgage servicer to honor any previously approved foreclosure prevention alternative. The bill would authorize a borrower to seek an injunction and damages for violations of certain of the provisions described above, except as specified. The bill would authorize the greater of treble actual damages or $50,000 in statutory damages if a violation of certain provisions is found to be intentional or reckless or resulted from willful misconduct, as specified. The bill would authorize the awarding of attorneys' fees for prevailing borrowers, as specified. Violations of these provisions by licensees of the Department of Corporations, the Department of Financial Institutions, and the Department of Real Estate would also be violations of those respective licensing laws. Because a violation of certain of those licensing laws is a crime, the bill would impose a state-mandated local program. The bill would provide that the requirements imposed on mortgage servicers, and mortgagees, trustees, beneficiaries, and authorized agents, described above are applicable only to mortgages or deeds of trust secured by residential real property not exceeding 4 dwelling units that is owner-occupied, as defined, and, until January 1, 2018, only to those entities who conduct more than 175 foreclosure sales per year or annual reporting period, except as specified. The bill would require, upon request from a borrower who requests a foreclosure prevention alternative, a mortgage servicer who conducts more than 175 foreclosure sales per year or annual reporting period to establish a single point of contact and provide the borrower with one or more direct means of communication with the single point of contact. The bill would specify various responsibilities of the single point of contact. The bill would define single point of contact for these purposes. (3) Existing law prescribes documents that may be recorded or filed in court. This bill would require that a specified declaration, notice of default, notice of sale, deed of trust, assignment of a deed of trust, substitution of trustee, or declaration or affidavit filed in any court relative to a foreclosure proceeding or recorded by or on behalf of a mortgage servicer shall be accurate and complete and supported by competent and reliable evidence. The bill would require that before recording or filing any of those documents, a mortgage servicer shall ensure that it has reviewed competent and reliable evidence to substantiate the borrower's default and the right to foreclose, including the borrower's loan status and loan information. The bill would, until January 1, 2018, provide that any mortgage servicer that engages in multiple and repeated violations of these requirements shall be liable for a civil penalty of up to $7,500 per mortgage or deed of trust, in an action brought by specified state and local government entities, and would also authorize administrative enforcement against licensees of the Department of Corporations, the Department of Financial Institutions, and the Department of Real Estate. The bill would authorize the Department of Corporations, the Department of Financial Institutions, and the Department of Real Estate to adopt regulations applicable to persons and entities under their respective jurisdictions for purposes of the provisions described above. The bill would provide that a violation of those regulations would be enforceable only by the regulating agency. (4)   The bill would state findings and declarations of the Legislature in relation to foreclosures in the state generally, and would state the purposes of the bill. (5) 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 no reimbursement is required by this act for a specified reason.
- Who sponsors AB 278?
- AB 278 is sponsored by Calderon, Lisa (Democratic), Carter, Mitchell, Corbett, Davis, DeSaulnier, Eng, Evans, Feuer, Hancock, Leno, Pavley, Skinner, Steinberg, and V. Manuel Pérez.
- What is the current status of AB 278?
- This bill has been enacted into law. Introduced February 08, 2011. Enacted.
- Where can I track AB 278?
- Track AB 278 free on One Click Politics — get push/email alerts when it moves.
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