California 2011-2012 Regular Session Status: In Committee

AB 1603 — Mortgages and deeds of trust: mortgage servicers: force-placed insurance.

Last action — Ordered to inactive file at the request of Assembly Member Allen.

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

This bill died with 2011-2012 Regular Session. It reached “In Committee” 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This bill is no longer active — its legislative session has ended, so there is no live prognosis.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 generally regulates mortgages and deeds of trust, including, among other things, recording mortgages and deeds of trust, disclosures in connection with mortgages and deeds of trust, and foreclosure procedures for mortgages and deeds of trust. This bill would prohibit a mortgage servicer, as defined, from obtaining a replacement policy of hazard, flood, or homeowner's insurance, collectively defined as "force-placed insurance," with respect to a residential property securing a mortgage loan, unless there is a reasonable basis to believe that the borrower has failed to comply with contract requirements to maintain hazard, flood, or homeowner's insurance. The bill would require, if a borrower's existing hazard, flood, or homeowner's insurance policy is paid through an escrow account, that the mortgage servicer advance payments to continue the borrower's existing policy, as specified. The bill would require a mortgage servicer to provide written notices, as specified, to a borrower prior to obtaining force-placed insurance. The bill would specify the circumstances, manner, and limitations under which a mortgage servicer may obtain force-placed insurance, and when a borrower is entitled to a refund from the mortgage servicer in connection with that insurance. The bill would authorize a borrower to bring a civil action in connection with the mortgage servicer's violation of the provisions of the bill. The bill would authorize the Attorney General, district attorney, or city attorney to bring an action for injunctive relief, and for restitution, disgorgement, or damages, as appropriate, for the affected borrowers. The bill would also authorize the Attorney General, district attorney, or city attorney to include a claim for costs, including reasonable attorney's fees and expenses. The bill would further authorize the Attorney General, district attorney, or city attorney to ask the court to levy a civil penalty not exceeding $10,000 against any mortgage servicer who violates the provisions of the bill.

Bill Text

Action History

  1. Ordered to inactive file at the request of Assembly Member Allen.

  2. Read second time. Ordered to third reading.

  3. Read second time and amended. Ordered to second reading.

  4. From committee: Do pass as amended. (Ayes 9. Noes 7.) (May 25).

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

  6. (Ayes 46. Noes 23. Page 4491.)

  7. Re-referred to Com. on APPR. pursuant to Assembly Rule 96.

  8. Re-referred to Com. on INS.

  9. Read second time and amended.

  10. From committee: Do pass as amended and re-refer to Com. on INS. (Ayes 7. Noes 3.) (April 10).

  11. Referred to Coms. on JUD. and INS.

  12. From printer. May be heard in committee March 8.

  13. Read first time. To print.

Sponsors

  • Dickinson · Cosponsor
  • Eng · Cosponsor
  • Feuer · Primary
  • Skinner · Cosponsor

Sponsorship breakdown

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1 sponsors · 3 co-sponsors · 118 not signed on · 1 voted No

Sponsors (1)

  • Feuer

Co-sponsors (3)

  • Dickinson
  • Eng
  • Skinner

Not signed on (118)

118 members have not signed on to this bill.

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"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

Do pass as amended.

Passed 9 Yea · 7 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 9700
Democratic 0001
Total 9701
% of votes cast 53%41%0%6%
How each member voted (17)
Member Party Vote
Fuentes — Yea
Campos — Yea
Gatto — Nay
Mitchell — Yea
Harkey — Nay
Lara — Yea
Ammiano — Yea
Davis — Yea
Donnelly — Nay
Nielsen — Nay
Norby — Nay
Solorio — Nay
Blumenfield — Yea
Bradford — Yea
Hill — Yea
Wagner — Nay
Calderon, Lisa Democratic Not Voting

Official roll call →

Subjects

finance housing
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does AB 1603 do?
Existing law generally regulates mortgages and deeds of trust, including, among other things, recording mortgages and deeds of trust, disclosures in connection with mortgages and deeds of trust, and foreclosure procedures for mortgages and deeds of trust. This bill would prohibit a mortgage servicer, as defined, from obtaining a replacement policy of hazard, flood, or homeowner's insurance, collectively defined as "force-placed insurance," with respect to a residential property securing a mortgage loan, unless there is a reasonable basis to believe that the borrower has failed to comply with contract requirements to maintain hazard, flood, or homeowner's insurance. The bill would require, if a borrower's existing hazard, flood, or homeowner's insurance policy is paid through an escrow account, that the mortgage servicer advance payments to continue the borrower's existing policy, as specified. The bill would require a mortgage servicer to provide written notices, as specified, to a borrower prior to obtaining force-placed insurance. The bill would specify the circumstances, manner, and limitations under which a mortgage servicer may obtain force-placed insurance, and when a borrower is entitled to a refund from the mortgage servicer in connection with that insurance. The bill would authorize a borrower to bring a civil action in connection with the mortgage servicer's violation of the provisions of the bill. The bill would authorize the Attorney General, district attorney, or city attorney to bring an action for injunctive relief, and for restitution, disgorgement, or damages, as appropriate, for the affected borrowers. The bill would also authorize the Attorney General, district attorney, or city attorney to include a claim for costs, including reasonable attorney's fees and expenses. The bill would further authorize the Attorney General, district attorney, or city attorney to ask the court to levy a civil penalty not exceeding $10,000 against any mortgage servicer who violates the provisions of the bill.
Who sponsors AB 1603?
AB 1603 is sponsored by Dickinson, Eng, Feuer, and Skinner.
What is the current status of AB 1603?
This bill died with 2011-2012 Regular Session. It reached “In Committee” 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 1603?
Track AB 1603 free on One Click Politics — get push/email alerts when it moves.

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Last checked for changes 3 months ago · updated continuously

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