California 2009-2010, 2nd Special Session Status: To Executive

SB 7 — Residential mortgage loans: foreclosure.

Last action — Chaptered by Secretary of State. Chapter 4, Statutes of 2009-10 Second Extraordinary Session.

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

This bill died with 2009-2010, 2nd Special Session. It reached “To Executive” 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This bill is no longer active — its legislative session has ended, so there is no live prognosis.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 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 4, Statutes of 2009-10 Second Extraordinary Session.

  2. Approved by Governor.

  3. Enrolled. To Governor at 4 p.m.

  4. In Senate. To enrollment.

  5. Read third time. Passed. (Ayes 48. Noes 27. Page 54.) To Senate.

  6. Read second time.

  7. (Ayes 71. Noes 1. Page 51.)

  8. Art. IV, Sec. 8(b), of Constitution dispensed with.

  9. Read first time.

  10. In Assembly.

  11. Read third time. Passed. (Ayes 24. Noes 15. Page 31.) To Assembly.

  12. Read third time. Amended. (Page 29.)

  13. Placed on third reading.

  14. From committee: Do pass as amended. (Ayes 22. Noes 13. Page 41.)

  15. Re-referred to Com. on B. & F.R.

  16. Senate Rule 29.3 suspended. (Ayes 23. Noes 13. Page 28.)

  17. Placed on third reading.

  18. Read second time.

  19. Withdrawn from committee.

  20. Introduced. Read first time. To Com. on RLS.

Sponsors

  • Lieu · Cosponsor
  • Corbett · Primary

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 1 co-sponsors · 120 not signed on · 3 voted No

Sponsors (1)

  • Corbett

Co-sponsors (1)

  • Lieu

Not signed on (120)

120 members have not signed on to this bill.

Show all 120 →

"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

Senate 3rd Reading SB7 Ducheny

Passed 25 Yea · 15 Nay
Party YeaNayPresentNot Voting
Unaffiliated 231300
Democratic 2100
Republican 0100
Total 251500
% of votes cast 63%38%0%0%
How each member voted (40)
Member Party Vote
Cox — Nay
DeSaulnier — Yea
Denham — Nay
Florez — Yea
Yee — Yea
Hancock — Yea
Ashburn — Yea
Wyland — Nay
Negrete — Yea
Runner — Nay
Cedillo — Yea
Cogdill — Nay
Harman — Nay
Hollingsworth — Nay
Kehoe — Yea
Leno — Yea
McLeod — Yea
Oropeza — Yea
Pavley — Yea
Simitian — Yea
Steinberg — Yea
Corbett — Yea
Correa — Yea
Ducheny — Yea
Dutton — Nay
Wiggins — Yea
Wolk — Yea
Aanestad — Nay
Alquist — Yea
Benoit — Nay
Huff — Nay
Liu — Yea
Maldonado — Yea
Romero — Yea
Walters — Nay
Wright — Nay
Calderon, Lisa Democratic Nay
Lowenthal, Josh Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Nay

Official roll call →

SB7 Corbett Senate 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
Cook — Nay
Eng — Not Voting
Evans — Yea
DeVore — Nay
Furutani — Yea
Garrick — Nay
Gilmore — Yea
Yamada — Yea
Carter — Yea
Chesbro — Yea
Bill — Yea
Berryhill — Yea
Feuer — Yea
Fuentes — Yea
Galgiani — Yea
Charles — Yea
Hayashi — Yea
Hernandez — Yea
Huffman — Yea
De — Yea
La — Yea
Torre — Yea
De — Yea
Leon — Yea
Bonnie — Yea
V. — Yea
Manuel — Yea
Perez — Yea
John — Yea
A. — Yea
Perez — Yea
Portantino — Yea
Salas — Yea
Saldana — Yea
Coto — Yea
Davis — Yea
Krekorian — Yea
Tom — Nay
Anderson — Nay
Bass — Yea
Block — Yea
Mendoza — Yea
Monning — Yea
Nava — Yea
Price — Yea
Ruskin — Yea
Skinner — Yea
Torlakson — Yea
Torrico — Yea
Berryhill — Nay
Emmerson — Nay
Fletcher — Nay
Gaines — Nay
Audra — Nay
Fuller — Nay
Hagman — Nay
Hall — Not Voting
Conway — Nay
Duvall — Nay
Huber — Nay
Jeffries — Nay
Knight — Nay
Logue — Nay
Miller — Nay
Nestande — Nay
Nielsen — Nay
Silva — Nay
Solorio — Not Voting
Villines — Nay
Adams — Nay
Ammiano — Yea
Beall — Yea
Blakeslee — Nay
Blumenfield — Yea
Brownley — Yea
Buchanan — Yea
Harkey — Nay
Hill — Yea
Lieu — Yea
Ma — Yea
Smyth — Nay
Swanson — Yea
Torres — Yea
Tran — Not Voting
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 →

Do pass as amended.

Passed 23 Yea · 13 Nay · 4 Other
Party YeaNayPresentNot Voting
Unaffiliated 201204
Democratic 3000
Republican 0100
Total 231304
% of votes cast 58%33%0%10%
How each member voted (40)
Member Party Vote
Corbett — Yea
Correa — Not Voting
Cox — Nay
DeSaulnier — Yea
Denham — Nay
Florez — Yea
Yee — Yea
Wyland — Nay
Negrete — Yea
Runner — Nay
Cedillo — Yea
Hancock — Yea
Harman — Nay
Cogdill — Not Voting
Hollingsworth — Nay
Huff — Nay
Kehoe — Yea
Leno — Yea
McLeod — Yea
Alquist — Yea
Benoit — Nay
Ducheny — Yea
Dutton — Nay
Oropeza — Yea
Romero — Yea
Steinberg — Yea
Wiggins — Nay
Wolk — Yea
Aanestad — Nay
Ashburn — Not Voting
Liu — Yea
Maldonado — Not Voting
Pavley — Yea
Simitian — Yea
Walters — Nay
Wright — Yea
Calderon, Lisa Democratic Yea
Lowenthal, Josh Democratic Yea
Padilla, Stephen C. Democratic Yea
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 SB 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 SB 7?
SB 7 is sponsored by Lieu and Corbett.
What is the current status of SB 7?
This bill died with 2009-2010, 2nd Special Session. It reached “To Executive” 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 7?
Track SB 7 free on One Click Politics — get push/email alerts when it moves.

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