California 2017-2018 Regular Session Status: In Committee

SB 739 — Reverse mortgages: lender notice requirements.

Last action — Returned to Secretary of Senate pursuant to Joint Rule 56.

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

This bill died with 2017-2018 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This bill is no longer active — its legislative session has ended, so there is no live prognosis.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

Under existing law, a "reverse mortgage" means a nonrecourse loan secured by real property if the loan provides cash advances to a borrower based on the equity or the value in a borrower's owner-occupied principal residence, the loan requires no payment of principal or interest until the entire loan becomes due and payable, and the loan is made by a specified licensed or chartered lender. Existing law requires the lender to prominently disclose in the loan agreement any interest rate or other fees to be charged during the period that commences on the date that the reverse mortgage loan becomes due and payable, and that ends when repayment in full is made. Existing federal law authorizes the nonborrowing spouse of a reverse mortgage borrower to exercise an option, sometimes referred to as a mortgagee optional election (MOE) , to further defer the due and payable status of the reverse mortgage upon the death of the borrower, upon meeting specified conditions. This bill would prohibit a lender from making a reverse mortgage loan on a principle residence without informing the borrower, and nonborrowing spouse, as defined, of the opportunity for a nonborrowing spouse to exercise the option described above to permit that spouse to remain in the residence following the death of the borrowing spouse, upon the satisfaction of specified conditions. The bill would, for a reverse mortgage entered into on or after January 1, 2018, prohibit a lender from initiating a foreclosure on a principle residence after the death of the borrowing spouse unless the notice requirements regarding the option were met and the nonborrowing spouse was given the opportunity to exercise the option.

Bill Text

Action History

  1. Returned to Secretary of Senate pursuant to Joint Rule 56.

  2. April 19 set for first hearing canceled at the request of author.

  3. Set for hearing April 19.

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

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

  6. Referred to Com. on RLS.

  7. From printer. May be acted upon on or after March 23.

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

Sponsors

  • Galgiani · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

  • Galgiani

Co-sponsors (0)

None.

Not signed on (121)

121 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

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 SB 739 do?
Under existing law, a "reverse mortgage" means a nonrecourse loan secured by real property if the loan provides cash advances to a borrower based on the equity or the value in a borrower's owner-occupied principal residence, the loan requires no payment of principal or interest until the entire loan becomes due and payable, and the loan is made by a specified licensed or chartered lender. Existing law requires the lender to prominently disclose in the loan agreement any interest rate or other fees to be charged during the period that commences on the date that the reverse mortgage loan becomes due and payable, and that ends when repayment in full is made. Existing federal law authorizes the nonborrowing spouse of a reverse mortgage borrower to exercise an option, sometimes referred to as a mortgagee optional election (MOE) , to further defer the due and payable status of the reverse mortgage upon the death of the borrower, upon meeting specified conditions. This bill would prohibit a lender from making a reverse mortgage loan on a principle residence without informing the borrower, and nonborrowing spouse, as defined, of the opportunity for a nonborrowing spouse to exercise the option described above to permit that spouse to remain in the residence following the death of the borrowing spouse, upon the satisfaction of specified conditions. The bill would, for a reverse mortgage entered into on or after January 1, 2018, prohibit a lender from initiating a foreclosure on a principle residence after the death of the borrowing spouse unless the notice requirements regarding the option were met and the nonborrowing spouse was given the opportunity to exercise the option.
Who sponsors SB 739?
SB 739 is sponsored by Galgiani.
What is the current status of SB 739?
This bill died with 2017-2018 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 SB 739?
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