California 2017-2018 Regular Session Status: Enacted 2 D cosponsors

SB 818 — Mortgages and deeds of trust: foreclosure.

Last action — Chaptered by Secretary of State. Chapter 404, Statutes of 2018.

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

This bill has been enacted into law. Introduced January 03, 2018. Enacted.

Prognosis

Likely to advance 82% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 15 sponsors

    1 primary, 14 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (2 D).

  • Cleared a recorded vote

    Passed 9 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 prescribes various requirements to be satisfied before the exercise of a power of sale under a mortgage or deed of trust. In this regard, existing law requires that a notice of default and a notice of sale be recorded and that specified periods of time elapse between the recordings and the sale. Certain laws enacted in 2012 and repealed on January 1, 2018, commonly referred to as the California Homeowner Bill of Rights, established a variety of requirements in connection with foreclosures on mortgages and deeds of trust, including restrictions on mortgage servicers actions while a borrower is attempting to secure a loan modification or has submitted a loan modification application. The foreclosure provisions of the act were generally limited to first lien mortgages and deeds of trust on owner-occupied residences, as specified. This bill would reenact various provisions of the California Homeowner Bill of Rights, as described above, and make other changes. With regard to first lien mortgages or deeds of trust on residential real property, as specified, the bill would prohibit an entity that forecloses on more than 175 real properties from recording a notice of default or notice of sale, or conducting a trustee's sale after a borrower submits a complete application for a first lien loan modification and that application is pending. The bill would require that the complete application be submitted at least 5 business days before a scheduled foreclosure sale. The prohibition on recording a notice of default or a notice of sale would continue until one of 3 specified events occur. The bill would grant a borrower 30 days to appeal if the loan modification is denied and authorize the borrower to provide evidence that the mortgage servicer's determination was in error. During this appeal period, the bill would prohibit filing a notice of default, or if that notice has already been filed, from recording a notice of sale or conducting a trustee's sale until the later of specified events. The bill would require a mortgage servicer to send a written notice to the borrower that identifies the reasons for denial and that includes certain information in connection with the denial. The bill would provide that a mortgage servicer satisfies specified telephone contact requirements if the borrower makes a written request to cease communications. This bill would also prohibit these entities from recording a notice of default until a mortgage servicer provides the borrower specified information in writing, 30 days have passed after contacting the borrower or after making diligent effort, as specified, to do so, and after compliance by the mortgage servicer with the requirements for completed applications for loan modification described above, as may be applicable. The bill would require that a notice of default include a specified declaration regarding contact with a borrower. The bill would make technical changes to provisions requiring a mortgage servicer to establish a single point of contact for a borrower requesting a foreclosure prevention alternative. In connection with the entities and mortgages and deeds of trust described above, among other things, the bill also would require a mortgage servicer that offers a foreclosure prevention alternative to send a written communication containing specified information regarding the alternative to a borrower within 5 days after recording a notice of default, except as specified. The bill would require a mortgage servicer to provide a borrower who submits a complete first lien loan modification application, or any document connected to that modification, written acknowledgment of receipt within 5 business days of receipt along with other information regarding the loan modification process. The bill would define "complete" for these purposes. The bill would prohibit recording a notice of default if a foreclosure prevention alternative is approved in writing before the notice is recorded and other specified conditions are met. If a foreclosure prevention alternative is approved after recording the notice, the bill would prohibit recording a notice of sale or conducting a trustee sale if specified conditions are met. The bill would require that a notice of default be rescinded or a pending trustee sale canceled when a borrower executes a permanent foreclosure alternative. The bill would prohibit a mortgage servicer from charging fees for a first lien loan modification or other foreclosure prevention alternative, as specified, and would require modifications and prevention alternatives previously approved to be honored following transfer or sale to another servicer. The bill would provide for liability to borrowers for material violations of these provisions, as specified, and would permit a court to award the greater of treble actual damages or specified statutory damages in cases of intention or reckless violations. Violations of certain of the provisions described above by licensees of the Department of Corporations, the Department of Financial Institutions, and the Department of Real Estate would also be deemed violations of those respective licensing laws. Because certain violations of those licensing laws are crimes, the bill would impose a state-mandated local program. The bill would provide that a mortgage servicer that engages in multiple and repeated filing of unsubstantiated documents related to foreclosure is 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 specified licensees by their regulatory agencies. With regard to first lien mortgages or deeds of trust on residential real property, as specified, in connection with an entity that forecloses on fewer than 175 real properties in a reporting period, as specified, the bill would prohibit recording a notice of default, notice of sale, or conducting a trustee's sale while a complete first lien loan modification application is pending and until the mortgage servicer provides the borrower a written determination regarding his or her eligibility for the requested modification. The bill would require that the complete application be submitted at least 5 business days before a scheduled foreclosure sale. The bill would prohibit recording a notice of default if a foreclosure prevention alternative is approved in writing before the notice is recorded and other specified conditions are met. If a foreclosure prevention alternative is approved after recording the notice, the bill would prohibit recording a notice of sale or conducting a trustee sale if specified conditions are met. The bill would prescribe a process by which these entities become subject to the provisions described above that are applicable to entities that foreclose on more than 175 real properties. The bill would require modifications and prevention alternatives previously approved to be honored following transfer or sale to another servicer. The bill would authorize a borrower to seek injunctive relief to enjoin material violations certain of its provisions if a trustee's deed upon sale has not been recorded. If the deed has been recorded, the bill would provide for liability to borrowers for material violations of these provisions, as specified, and would permit a court to award the greater of treble actual damages or specified statutory damages in cases of intention or reckless violations. The bill would authorize a court to award attorney's fees and costs, as specified. Violations of certain of the provisions described above by licensees of the Department of Corporations, the Department of Financial Institutions, and the Department of Real Estate would also be deemed violations of those respective licensing laws. Because certain violations of those licensing laws are crimes, the bill would impose a state-mandated local program. The bill would make a statement of legislative intent regarding the amendment, addition, or repeal of provisions of the California Homeowner Bill of Rights that took effect on January 1, 2018, on liability incurred prior to January 1, 2018. The bill would make conforming changes and repeal duplicate provisions of law. (2) 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

Action History

  1. Chaptered by Secretary of State. Chapter 404, Statutes of 2018.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 4 p.m.

  4. Assembly amendments concurred in. (Ayes 34. Noes 0. Page 5420.) Ordered to engrossing and enrolling.

  5. In Senate. Concurrence in Assembly amendments pending.

  6. Read third time. Passed. (Ayes 76. Noes 0. Page 6309.) Ordered to the Senate.

  7. Read second time. Ordered to consent calendar.

  8. From committee: Do pass. Ordered to consent calendar. (Ayes 17. Noes 0.) (August 8).

  9. From committee: Do pass and re-refer to Com. on APPR. (Ayes 10. Noes 0.) (June 26). Re-referred to Com. on APPR.

  10. Coauthors revised.

  11. From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.

  12. From committee: Do pass and re-refer to Com. on JUD. (Ayes 11. Noes 0.) (June 18). Re-referred to Com. on JUD.

  13. Referred to Coms. on B. & F. and JUD.

  14. In Assembly. Read first time. Held at Desk.

  15. Read third time. Passed. (Ayes 24. Noes 12. Page 5008.) Ordered to the Assembly.

  16. Read second time. Ordered to third reading.

  17. From committee: Be ordered to second reading pursuant to Senate Rule 28.8.

  18. Set for hearing May 7.

  19. From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 2. Page 4812.) (April 24). Re-referred to Com. on APPR.

  20. April 24 set for first hearing. Reconsideration of favorable vote granted.

  21. From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 1. Page 4812.) (April 24). Re-referred to Com. on APPR.

  22. Set for hearing April 24.

  23. From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 2. Page 4532.) (April 4). Re-referred to Com. on JUD.

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

  25. Set for hearing April 4.

  26. Re-referred to Coms. on B. & F.I. and JUD.

  27. Re-referred to Com. on RLS.

  28. Withdrawn from committee.

  29. Referred to Coms. on I., B. & F.I. and JUD.

  30. From printer. May be acted upon on or after February 3.

  31. (Corrected March 20).

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

Sponsors

  • Atkins · Cosponsor
  • Mitchell · Cosponsor
  • Beall · Primary
  • Bonta · Cosponsor
  • Chiu · Cosponsor
  • Cunningham · Cosponsor
  • Galgiani · Cosponsor
  • Hill · Cosponsor
  • Ash Kalra · Cosponsor
  • Leyva · Cosponsor
  • Low · Cosponsor
  • Mullin · Cosponsor
  • Rodriguez · Cosponsor
  • Wieckowski · Cosponsor
  • Scott D. Wiener · Cosponsor

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 14 co-sponsors · 107 not signed on · 3 voted No

Sponsors (1)

  • Beall

Co-sponsors (14)

  • Atkins
  • Mitchell
  • Bonta
  • Chiu
  • Cunningham
  • Galgiani
  • Hill
  • Kalra, Ash Democratic
  • Leyva
  • Low
  • Mullin
  • Rodriguez
  • Wieckowski
  • Wiener, Scott D. Democratic

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.

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

Unfinished Business SB818 Beall et al. Concurrence

Passed 34 Yea · 0 Nay · 6 Other
Party YeaNayPresentNot Voting
Unaffiliated 29006
Democratic 5000
Total 34006
% of votes cast 85%0%0%15%
How each member voted (40)
Member Party Vote
Beall — Yea
Bradford — Yea
Hueso — Yea
Moorlach — Yea
Nielsen — Not Voting
Skinner — Yea
Delgado — Yea
Fuller — Not Voting
Galgiani — Yea
Glazer — Yea
Hertzberg — Yea
Allen — Yea
Hill — Yea
Portantino — Yea
Atkins — Yea
Anderson — Yea
Bates — Yea
Lara — Yea
Leyva — Yea
Monning — Yea
Morrell — Yea
Pan — Yea
Roth — Yea
Vidak — Yea
Wieckowski — Yea
Mitchell — Yea
De León — Not Voting
Hernandez — Yea
Cannella — Yea
Chang — Not Voting
Dodd — Yea
Wilk — Yea
Beth Gaines — Not Voting
Bill Berryhill — Not Voting
Mark Stone — Yea
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Nguyen, Stephanie Democratic Yea
Stern, Henry I. Democratic Yea
Wiener, Scott D. Democratic Yea

Official roll call →

SB 818 Beall Consent Calendar Second Day

Passed 76 Yea · 0 Nay · 4 Other
Party YeaNayPresentNot Voting
Democratic 16000
Unaffiliated 54004
Republican 6000
Total 76004
% of votes cast 95%0%0%5%
How each member voted (80)
Member Party Vote
Bloom — Not Voting
Brough — Yea
Harper — Yea
Kiley — Yea
Low — Not Voting
Maienschein — Yea
Mathis — Yea
O'Donnell — Yea
Quirk — Yea
Rodriguez — Yea
Thurmond — Yea
Waldron — Yea
Eggman — Yea
Chu — Yea
Cooper — Yea
Cunningham — Yea
Rivas — Yea
Rubio — Yea
Salas — Yea
Frazier — Yea
Burke — Yea
Fong — Yea
Gray — Yea
Gonzalez Fletcher — Yea
Kamlager-Dove — Yea
Levine — Yea
Chau — Yea
Mayes — Yea
McCarty — Not Voting
Medina — Yea
Acosta — Yea
Baker — Yea
Cooley — Yea
Daly — Yea
Nazarian — Yea
Rendon — Yea
Santiago — Yea
Steinorth — Yea
Ting — Yea
Wood — Yea
Friedman — Yea
Gloria — Yea
Holden — Yea
Jones-Sawyer — Yea
Melendez — Yea
Mullin — Yea
Obernolte — Yea
Bigelow — Yea
Chiu — Yea
Chávez — Yea
Voepel — Yea
Weber — Yea
Cristina Garcia — Not Voting
Eduardo Garcia — Yea
Jim Patterson — Yea
Mark Stone — Yea
Travis Allen — Yea
Wendy Carrillo — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Arambula, Joaquin Democratic Yea
Berman, Marc Democratic Yea
Bonta, Mia Democratic Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Yea
Cervantes, Sabrina Democratic Yea
Gabriel, Jesse Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Yea
Limón, Monique Democratic Yea
Muratsuchi, Al Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Yea
Dahle, Megan Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Lackey, Tom Republican Yea

Official roll call →

Do pass. To Consent Calendar.

Passed 17 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 13000
Democratic 3000
Republican 1000
Total 17000
% of votes cast 100%0%0%0%
How each member voted (17)
Member Party Vote
Bigelow — Yea
Bloom — Yea
Brough — Yea
Obernolte — Yea
Eggman — Yea
Friedman — Yea
Gonzalez Fletcher — Yea
Fong — Yea
Chau — Yea
Nazarian — Yea
Quirk — Yea
Eduardo Garcia — Yea
Wendy Carrillo — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Gallagher, James Republican Yea

Official roll call →

Do pass and be re-referred to the Committee on [Judiciary]

Passed 11 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 5000
Democratic 4000
Republican 2000
Total 11000
% of votes cast 100%0%0%0%
How each member voted (11)
Member Party Vote
Acosta — Yea
Burke — Yea
Weber — Yea
Gonzalez Fletcher — Yea
Mark Stone — Yea
Cervantes, Sabrina Democratic Yea
Gabriel, Jesse Democratic Yea
Grayson, Timothy S. Democratic Yea
Limón, Monique Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Yea

Official roll call →

3rd Reading SB818 Beall et al.

Passed 24 Yea · 12 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 201202
Democratic 4001
Total 241203
% of votes cast 62%31%0%8%
How each member voted (39)
Member Party Vote
Bates — Nay
Hill — Yea
Leyva — Yea
Monning — Yea
Roth — Yea
Vidak — Nay
Galgiani — Yea
Fuller — Nay
Allen — Yea
De León — Yea
Portantino — Yea
Atkins — Yea
Mitchell — Yea
Glazer — Yea
Cannella — Nay
Hernandez — Yea
Hertzberg — Not Voting
Hueso — Yea
Dodd — Yea
Lara — Yea
Anderson — Nay
Beall — Yea
Bradford — Yea
Moorlach — Nay
Morrell — Nay
Newman — Not Voting
Nielsen — Nay
Pan — Yea
Skinner — Yea
Wieckowski — Yea
Wilk — Nay
Beth Gaines — Nay
Bill Berryhill — Nay
Mark Stone — Nay
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Nguyen, Stephanie Democratic Not Voting
Stern, Henry I. Democratic Yea
Wiener, Scott D. Democratic Yea

Official roll call →

Subjects

housing labor
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Frequently asked questions

What does SB 818 do?
(1) Existing law prescribes various requirements to be satisfied before the exercise of a power of sale under a mortgage or deed of trust. In this regard, existing law requires that a notice of default and a notice of sale be recorded and that specified periods of time elapse between the recordings and the sale. Certain laws enacted in 2012 and repealed on January 1, 2018, commonly referred to as the California Homeowner Bill of Rights, established a variety of requirements in connection with foreclosures on mortgages and deeds of trust, including restrictions on mortgage servicers actions while a borrower is attempting to secure a loan modification or has submitted a loan modification application. The foreclosure provisions of the act were generally limited to first lien mortgages and deeds of trust on owner-occupied residences, as specified. This bill would reenact various provisions of the California Homeowner Bill of Rights, as described above, and make other changes. With regard to first lien mortgages or deeds of trust on residential real property, as specified, the bill would prohibit an entity that forecloses on more than 175 real properties from recording a notice of default or notice of sale, or conducting a trustee's sale after a borrower submits a complete application for a first lien loan modification and that application is pending. The bill would require that the complete application be submitted at least 5 business days before a scheduled foreclosure sale. The prohibition on recording a notice of default or a notice of sale would continue until one of 3 specified events occur. The bill would grant a borrower 30 days to appeal if the loan modification is denied and authorize the borrower to provide evidence that the mortgage servicer's determination was in error. During this appeal period, the bill would prohibit filing a notice of default, or if that notice has already been filed, from recording a notice of sale or conducting a trustee's sale until the later of specified events. The bill would require a mortgage servicer to send a written notice to the borrower that identifies the reasons for denial and that includes certain information in connection with the denial. The bill would provide that a mortgage servicer satisfies specified telephone contact requirements if the borrower makes a written request to cease communications. This bill would also prohibit these entities from recording a notice of default until a mortgage servicer provides the borrower specified information in writing, 30 days have passed after contacting the borrower or after making diligent effort, as specified, to do so, and after compliance by the mortgage servicer with the requirements for completed applications for loan modification described above, as may be applicable. The bill would require that a notice of default include a specified declaration regarding contact with a borrower. The bill would make technical changes to provisions requiring a mortgage servicer to establish a single point of contact for a borrower requesting a foreclosure prevention alternative. In connection with the entities and mortgages and deeds of trust described above, among other things, the bill also would require a mortgage servicer that offers a foreclosure prevention alternative to send a written communication containing specified information regarding the alternative to a borrower within 5 days after recording a notice of default, except as specified. The bill would require a mortgage servicer to provide a borrower who submits a complete first lien loan modification application, or any document connected to that modification, written acknowledgment of receipt within 5 business days of receipt along with other information regarding the loan modification process. The bill would define "complete" for these purposes. The bill would prohibit recording a notice of default if a foreclosure prevention alternative is approved in writing before the notice is recorded and other specified conditions are met. If a foreclosure prevention alternative is approved after recording the notice, the bill would prohibit recording a notice of sale or conducting a trustee sale if specified conditions are met. The bill would require that a notice of default be rescinded or a pending trustee sale canceled when a borrower executes a permanent foreclosure alternative. The bill would prohibit a mortgage servicer from charging fees for a first lien loan modification or other foreclosure prevention alternative, as specified, and would require modifications and prevention alternatives previously approved to be honored following transfer or sale to another servicer. The bill would provide for liability to borrowers for material violations of these provisions, as specified, and would permit a court to award the greater of treble actual damages or specified statutory damages in cases of intention or reckless violations. Violations of certain of the provisions described above by licensees of the Department of Corporations, the Department of Financial Institutions, and the Department of Real Estate would also be deemed violations of those respective licensing laws. Because certain violations of those licensing laws are crimes, the bill would impose a state-mandated local program. The bill would provide that a mortgage servicer that engages in multiple and repeated filing of unsubstantiated documents related to foreclosure is 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 specified licensees by their regulatory agencies. With regard to first lien mortgages or deeds of trust on residential real property, as specified, in connection with an entity that forecloses on fewer than 175 real properties in a reporting period, as specified, the bill would prohibit recording a notice of default, notice of sale, or conducting a trustee's sale while a complete first lien loan modification application is pending and until the mortgage servicer provides the borrower a written determination regarding his or her eligibility for the requested modification. The bill would require that the complete application be submitted at least 5 business days before a scheduled foreclosure sale. The bill would prohibit recording a notice of default if a foreclosure prevention alternative is approved in writing before the notice is recorded and other specified conditions are met. If a foreclosure prevention alternative is approved after recording the notice, the bill would prohibit recording a notice of sale or conducting a trustee sale if specified conditions are met. The bill would prescribe a process by which these entities become subject to the provisions described above that are applicable to entities that foreclose on more than 175 real properties. The bill would require modifications and prevention alternatives previously approved to be honored following transfer or sale to another servicer. The bill would authorize a borrower to seek injunctive relief to enjoin material violations certain of its provisions if a trustee's deed upon sale has not been recorded. If the deed has been recorded, the bill would provide for liability to borrowers for material violations of these provisions, as specified, and would permit a court to award the greater of treble actual damages or specified statutory damages in cases of intention or reckless violations. The bill would authorize a court to award attorney's fees and costs, as specified. Violations of certain of the provisions described above by licensees of the Department of Corporations, the Department of Financial Institutions, and the Department of Real Estate would also be deemed violations of those respective licensing laws. Because certain violations of those licensing laws are crimes, the bill would impose a state-mandated local program. The bill would make a statement of legislative intent regarding the amendment, addition, or repeal of provisions of the California Homeowner Bill of Rights that took effect on January 1, 2018, on liability incurred prior to January 1, 2018. The bill would make conforming changes and repeal duplicate provisions of law. (2) 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 SB 818?
SB 818 is sponsored by Atkins, Mitchell, Beall, Bonta, Chiu, Cunningham, Galgiani, Hill, Kalra, Ash (Democratic), Leyva, Low, Mullin, Rodriguez, Wieckowski, and Wiener, Scott D. (Democratic).
What is the current status of SB 818?
This bill has been enacted into law. Introduced January 03, 2018. Enacted.
Where can I track SB 818?
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