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CA SB 1146

Title: Mortgages.
Author: Scott Thomas Wilk

Summary
SB 1146, as amended, Wilk. Mortgages. Existing law exempts from the usury limitation set forth in Section 1 of Article XV of the California Constitution a loan or forbearance made or arranged by any person licensed as a real estate broker by the State of California, and secured, directly or collaterally, in whole or in part on real property. Existing law provides that a loan or forbearance is arranged by a person licensed as a real estate broker when the broker takes any of specified actions, including (1) acting for compensation or in expectation of compensation for soliciting, negotiating, or arranging the loan for another, and (2) acting for compensation or in expectation of compensation for selling, buying, leasing, exchanging, or negotiating the sale, purchase, lease, or exchange of real property or a business for another and arranging a forbearance, extension, or refinancing of any loan in connection with that sale, purchase, lease, exchange of, or an improvement to, real property or a business. Existing law defines the term “made or arranged” to include any loan made by a person licensed as a real estate broker as a principal or as an agent for others, and whether or not the person is acting within the course and scope of such license.This bill would include a forbearance, extension, or modification of a loan in the exception described above, as specified.Existing law defines and regulates mortgages, including recording notices of default, applications for loan modification, foreclosure prevention alternatives, and recordation of the trustee’s deed upon sale of property under the power of sale contained in a deed of trust or mortgage, also known as a trustee’s sale or foreclosure sale.Existing law requires mortgage servicers to establish a single point of contact when a borrower requests a foreclosure prevention alternative, as specified. Existing law exempts from these provisions certain entities and persons that, during their immediately preceding annual reporting period, as established with their primary regulator, foreclosed on 175 of fewer residential real properties, containing no more than 4 dwelling units, that are located in California.This bill would also exempt persons or entities that make and service 7 or fewer loans for the purchase of residential real property in a calendar year from those provisions.Existing law prohibits certain entities and persons that, during their immediately preceding annual reporting period, as established with their primary regulator, foreclosed on 175 of fewer residential real properties, containing no more than 4 dwelling units, that are located in California from recording a notice of default, notice of sale, or conducting a trustee’s sale if the borrower submits a complete application for a first lien loan modification, as specified.This bill would subject persons or entities that make and service 7 or fewer loans for the purchase of residential real property in a calendar year to those provisions.Existing law provides that specified law only applies to a first lien mortgage or deed of trust that meets either of 2 conditions: (1) the first lien mortgage or deed of trust is secured by owner-occupied residential real property containing no more than 4 dwelling units, or (2) the first lien mortgage or deed of trust is secured by residential real property that is occupied by a tenant, that contains no more than 4 dwelling units, and that meets certain conditions.This bill would remove the 2nd condition.Existing law authorizes a trustor or mortgagor to cure a default in certain circumstances. Existing law requires the beneficiary or mortgagee, after a cure, to reinstate and, within 21 days following the reinstatement, execute and deliver to the trustee a notice, as specified. Existing law requires the trustee to record the notice, as specified.This bill would provide that a trustee is not required to record that notice if the mortgage or deed of trust is paid in full and a full re

Status
In Senate. Concurrence in Assembly amendments pending.

Bill Documents
CA SB 1146 - 06/03/24 - Amended Assembly
06/03/24 - CA SB 1146 (06/03/24 - Amended Assembly)


CA SB 1146 - 05/02/24 - Amended Senate
05/02/24 - CA SB 1146 (05/02/24 - Amended Senate)

CA SB 1146 - 04/01/24 - Amended Senate
04/01/24 - CA SB 1146 (04/01/24 - Amended Senate)

CA SB 1146 - 02/14/24 - Introduced
02/14/24 - CA SB 1146 (02/14/24 - Introduced)

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Author Details


  • Scott Wilk - R
    Senator - State Senate - CA

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    Capital Address:
    1021 O Street, Suite 7140
    Sacramento, CA 95814-4900
    9166514021

    District Address:
    23920 Valencia Blvd Ste 250
    Santa Clarita, CA 91355 5328
    Phone: 6612861471
    Fax: 6612862543