California 2009-2010, 2nd Special Session Status: Enacted

AB 7 — Residential mortgage loans: foreclosure.

Last action — Chaptered by Secretary of State. Chapter 5, Statutes of 2009-10 Second Extraordinary Session.

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

This bill has been enacted into law. Introduced February 11, 2009. Enacted.

Prognosis

Likely to advance 80% · 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.

  • 24 sponsors

    1 primary, 23 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 3 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

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 provides that, after not less than 3 months after the filing of the notice of default, the parties described above may give notice of sale, stating the time and place of the sale, as specified. This bill, until January 1, 2011, and only with respect to specified loans that were recorded between January 1, 2003, to January 1, 2008, would prohibit a mortgagee, trustee, or other person authorized to take sale from giving a notice of sale for an additional 90 days if the loan at issue is the first mortgage or deed of trust that the property secures, the borrower occupied the property as his or her principal residence at the time the loan became delinquent, and the notice of default has been filed. The bill would exempt certain loans from this prohibition, including, upon order of the Commissioner of Corporations, the Commissioner of Financial Institutions, or the Real Estate Commissioner, as applicable, the loans of a mortgage loan servicer, as defined, if the mortgage loan servicer applies to the commissioner for an exemption indicating that it has implemented a loan modification program with specified features and the commissioner concludes that the program meets specified requirements. The bill would permit a mortgage loan servicer to submit a revised application if its application is denied, and would permit the commissioner to revoke an exemption under certain circumstances. The bill would require the commissioners to adopt regulations in this regard, as specified. The bill would require the Secretary of Business, Transportation and Housing to report to the Legislature 3 months after the first exemption is granted regarding the details of the actions on exemption of loans serviced by a mortgage loan servicer under a loan modification program and to submit subsequent reports every 6 months thereafter. The bill would require the secretary to post specified information on the exemption program on the agency's Internet Web site. The bill would provide that a person who violates these provisions is deemed to have violated his or her license law. The bill would provide that the failure to comply with the provisions described above does not invalidate a sale that is otherwise valid under specified provisions. The bill would require that a notice of sale include a declaration from the mortgage loan servicer regarding the issuance of a temporary or final order of exemption from the commissioner pursuant to these provisions and the timeframe applicable to the notice of sale. The bill would make a statement of legislative findings.

Bill Text

Action History

  1. Chaptered by Secretary of State. Chapter 5, Statutes of 2009-10 Second Extraordinary Session.

  2. Approved by the Governor.

  3. Enrolled and to the Governor at 11 a.m.

  4. In Assembly. To enrollment.

  5. Read third time, passed, and to Assembly. (Ayes 23. Noes 15. Page 45.)

  6. Reconsideration granted. (Ayes 39. Noes 0. Page 40.)

  7. Motion to reconsider made by Senator Florez.

  8. Read third time, passed, and to Assembly. (Ayes 23. Noes 15. Page 40.)

  9. Unanimous consent granted to take up without reference to file.

  10. Read second time. To third reading.

  11. Withdrawn from committee. Ordered placed on second reading file.

  12. Referred to Com. on RLS.

  13. In Senate. Read first time. To Com. on RLS. for assignment.

  14. Read third time, passed, and to Senate. (Ayes 48. Noes 27. Page 47.)

  15. Read third time, amended, and returned to third reading. (Page 46.).

  16. Read second time. To third reading.

  17. Art. IV, Sec. 8(b) of the Constitution suspended. (Ayes 67. Noes 1. Page 43.)

  18. From printer.

  19. Read first time. To print.

Sponsors

  • Yamada · Cosponsor
  • Wiggins · Cosponsor
  • Torres · Cosponsor
  • Torlakson · Cosponsor
  • Swanson · Cosponsor
  • Skinner · Cosponsor
  • Ruskin · Cosponsor
  • Price · Cosponsor
  • Lieu · Primary
  • Huffman · Cosponsor
  • Hayashi · Cosponsor
  • Hall · Cosponsor
  • Galgiani · Cosponsor
  • Feuer · Cosponsor
  • DeSaulnier · Cosponsor
  • Coto · Cosponsor
  • Corbett · Cosponsor
  • Carter · Cosponsor
  • Brownley · Cosponsor
  • Block · Cosponsor
  • Saldana · Cosponsor
  • Portantino · Cosponsor
  • V. Manuel Perez · Cosponsor
  • De Leon · Cosponsor

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 23 co-sponsors · 98 not signed on · 3 voted No

Sponsors (1)

  • Lieu

Co-sponsors (23)

  • Yamada
  • Wiggins
  • Torres
  • Torlakson
  • Swanson
  • Skinner
  • Ruskin
  • Price
  • Huffman
  • Hayashi
  • Hall
  • Galgiani
  • Feuer
  • DeSaulnier
  • Coto
  • Corbett
  • Carter
  • Brownley
  • Block
  • Saldana
  • Portantino
  • V. Manuel Perez
  • De Leon

Not signed on (98)

98 members have not signed on to this bill.

Show all 98 →

"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

Assembly 3rd Supp 1 AB7 Lieu By Corbett

Passed 24 Yea · 15 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 221301
Democratic 2100
Republican 0100
Total 241501
% of votes cast 60%38%0%3%
How each member voted (40)
Member Party Vote
Wyland — Nay
Corbett — Yea
Correa — Yea
Cox — Nay
DeSaulnier — Yea
Denham — Nay
Florez — Yea
Yee — Yea
Cedillo — Yea
Hancock — Yea
Negrete — Yea
Huff — Nay
Kehoe — Yea
Runner — Nay
Cogdill — Nay
Leno — Yea
Ashburn — Not Voting
Ducheny — Yea
Dutton — Nay
Liu — Yea
McLeod — Yea
Pavley — Yea
Simitian — Yea
Steinberg — Yea
Wiggins — Yea
Wolk — Yea
Wright — Nay
Aanestad — Nay
Alquist — Yea
Benoit — Nay
Harman — Nay
Hollingsworth — Nay
Maldonado — Yea
Oropeza — Yea
Romero — Yea
Walters — Nay
Calderon, Lisa Democratic Nay
Lowenthal, Josh Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Nay

Official roll call →

W/O REF. TO FILE AB7 Lieu

Passed 24 Yea · 15 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 221301
Democratic 2100
Republican 0100
Total 241501
% of votes cast 60%38%0%3%
How each member voted (40)
Member Party Vote
Cedillo — Yea
Wyland — Nay
Cogdill — Nay
Corbett — Yea
Correa — Yea
Cox — Nay
DeSaulnier — Yea
Denham — Nay
Florez — Yea
Yee — Yea
Hancock — Yea
Kehoe — Yea
Ducheny — Yea
Leno — Yea
McLeod — Yea
Negrete — Yea
Alquist — Yea
Oropeza — Yea
Romero — Yea
Wiggins — Yea
Wolk — Yea
Runner — Nay
Huff — Nay
Dutton — Nay
Aanestad — Nay
Benoit — Nay
Walters — Nay
Wright — Nay
Ashburn — Yea
Harman — Nay
Hollingsworth — Nay
Liu — Yea
Maldonado — Yea
Pavley — Yea
Simitian — Yea
Steinberg — Not Voting
Calderon, Lisa Democratic Nay
Lowenthal, Josh Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Nay

Official roll call →

AB7 LIEU Assembly Third Reading Second Extraordinary Session

Passed 58 Yea · 29 Nay · 5 Other
Party YeaNayPresentNot Voting
Unaffiliated 532704
Democratic 4001
Republican 1200
Total 582905
% of votes cast 63%32%0%5%
How each member voted (92)
Member Party Vote
Chesbro — Yea
Emmerson — Nay
Coto — Yea
Evans — Yea
Davis — Yea
DeVore — Nay
Fuller — Nay
Garrick — Nay
Hall — Not Voting
Carter — Yea
Bill — Yea
Berryhill — Yea
Charles — Yea
Ammiano — Yea
Eng — Not Voting
De — Yea
La — Yea
Torre — Yea
De — Yea
Leon — Yea
Yamada — Yea
Bonnie — Yea
V. — Yea
Manuel — Yea
Perez — Yea
John — Yea
A. — Yea
Perez — Yea
Portantino — Yea
Salas — Yea
Saldana — Yea
Conway — Nay
Cook — Nay
Duvall — Nay
Tom — Nay
Berryhill — Nay
Feuer — Yea
Fuentes — Yea
Furutani — Yea
Galgiani — Yea
Gilmore — Yea
Fletcher — Nay
Gaines — Nay
Audra — Nay
Bass — Yea
Blakeslee — Nay
Hagman — Nay
Hayashi — Yea
Hernandez — Yea
Hill — Yea
Huffman — Yea
Knight — Nay
Krekorian — Yea
Logue — Nay
Mendoza — Yea
Miller — Nay
Monning — Yea
Nestande — Nay
Price — Yea
Ruskin — Yea
Skinner — Yea
Smyth — Nay
Torlakson — Yea
Torres — Yea
Villines — Nay
Solorio — Not Voting
Tran — Not Voting
Adams — Nay
Anderson — Nay
Beall — Yea
Block — Yea
Blumenfield — Yea
Brownley — Yea
Buchanan — Yea
Harkey — Nay
Huber — Nay
Jeffries — Nay
Lieu — Yea
Ma — Yea
Nava — Yea
Nielsen — Nay
Silva — Nay
Swanson — Yea
Torrico — Yea
Arambula, Joaquin Democratic Yea
Caballero, Anna M. Democratic Not Voting
Calderon, Lisa Democratic Yea
Fong, Mike Democratic Yea
Lowenthal, Josh Democratic Yea
Jones, Brian W. Republican Yea
Niello, Roger W. Republican Nay
Strickland, Tony Republican Nay

Official roll call →

Subjects

housing labor
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 7 do?
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 provides that, after not less than 3 months after the filing of the notice of default, the parties described above may give notice of sale, stating the time and place of the sale, as specified. This bill, until January 1, 2011, and only with respect to specified loans that were recorded between January 1, 2003, to January 1, 2008, would prohibit a mortgagee, trustee, or other person authorized to take sale from giving a notice of sale for an additional 90 days if the loan at issue is the first mortgage or deed of trust that the property secures, the borrower occupied the property as his or her principal residence at the time the loan became delinquent, and the notice of default has been filed. The bill would exempt certain loans from this prohibition, including, upon order of the Commissioner of Corporations, the Commissioner of Financial Institutions, or the Real Estate Commissioner, as applicable, the loans of a mortgage loan servicer, as defined, if the mortgage loan servicer applies to the commissioner for an exemption indicating that it has implemented a loan modification program with specified features and the commissioner concludes that the program meets specified requirements. The bill would permit a mortgage loan servicer to submit a revised application if its application is denied, and would permit the commissioner to revoke an exemption under certain circumstances. The bill would require the commissioners to adopt regulations in this regard, as specified. The bill would require the Secretary of Business, Transportation and Housing to report to the Legislature 3 months after the first exemption is granted regarding the details of the actions on exemption of loans serviced by a mortgage loan servicer under a loan modification program and to submit subsequent reports every 6 months thereafter. The bill would require the secretary to post specified information on the exemption program on the agency's Internet Web site. The bill would provide that a person who violates these provisions is deemed to have violated his or her license law. The bill would provide that the failure to comply with the provisions described above does not invalidate a sale that is otherwise valid under specified provisions. The bill would require that a notice of sale include a declaration from the mortgage loan servicer regarding the issuance of a temporary or final order of exemption from the commissioner pursuant to these provisions and the timeframe applicable to the notice of sale. The bill would make a statement of legislative findings.
Who sponsors AB 7?
AB 7 is sponsored by Yamada, Wiggins, Torres, Torlakson, Swanson, Skinner, Ruskin, Price, Lieu, Huffman, Hayashi, Hall, Galgiani, Feuer, DeSaulnier, Coto, Corbett, Carter, Brownley, Block, Saldana, Portantino, V. Manuel Perez, and De Leon.
What is the current status of AB 7?
This bill has been enacted into law. Introduced February 11, 2009. Enacted.
Where can I track AB 7?
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