The bill would authorize a borrower to seek an injunction and damages for violations of certain of the provisions described above, except as specified. The bill would authorize the greater of treble actual damages or $50,000 in statutory damages if a violation of certain provisions is found to be intentional or reckless or resulted from willful misconduct, as specified. The bill would authorize the awarding of attorneys’ fees for prevailing borrowers, as specified.

Violations of these provisions by licensees of the Department of Corporations, the Department of Financial Institutions, and the Department of Real Estate would also be violations of those respective licensing laws. Because a violation of certain of those licensing laws is a crime, the bill would impose a state-mandated local program.

This law allows homeowners to sue banks against any damages or violations. The law allows $50,000 in statutory damages or a greater amount of what the actual damages were. The homeowner could also get money to pay for the attorneys that represented them. Violating some of these licensing laws is a crime and would make state mandated local programs to be put in place.

The bill would provide that the requirements imposed on mortgage servicers, and mortgagees, trustees, beneficiaries, and authorized agents, described above are applicable only to mortgages or deeds of trust secured by residential real property not exceeding 4 dwelling units that is owner-occupied, as defined, and, until January 1, 2018, only to those entities who conduct more than 175 foreclosure sales per year or annual reporting period, except as specified.

The bill states that these laws only apply to banks and are only applicable to properties that have less than 4 units and were the owners are occupying the property. The laws will also be applicable to those banks who conduct more than 175 foreclosures per year or annual reporting period.

The bill would require, upon request from a borrower who requests a foreclosure prevention alternative, a mortgage servicer who conducts more than 175 foreclosure sales per year or annual reporting period to establish a single point of contact and provide the borrower with one or more direct means of communication with the single point of contact. The bill would specify various responsibilities of the single point of contact. The bill would define single point of contact for these purposes.

If someone requests to have an alternative given to them before foreclosure is considered should be given a person or a group of persons that they can talk to about their alternative. That person will be able to answer their questions and will be knowledgeable about what is going on with their case.

(3) Existing law prescribes documents that may be recorded or filed in court.

This bill would require that a specified declaration, notice of default, notice of sale, deed of trust, assignment of a deed of trust, substitution of trustee, or declaration or affidavit filed in any court relative to a foreclosure proceeding or recorded by or on behalf of a mortgage servicer shall be accurate and complete and supported by competent and reliable evidence. The bill would require that, before recording or filing any of those documents, a mortgage servicer shall ensure that it has reviewed competent and reliable evidence to substantiate the borrower’s default and the right to foreclose, including the borrower’s loan status and loan information.

Any paperwork or declaration submitted to the courts should be complete and truthful. The paperwork should also be able to be supported and backed up with evidence. Meaning that if a foreclosure is being filed the bank should have reason to be doing so such as proof of lack of payment.

The bill would, until January 1, 2018, provide that any mortgage servicer that engages in multiple and repeated violations of these requirements shall be 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 licensees of the Department of Corporations, the Department of Financial Institutions, and the Department of Real Estate.

This law states that any banks that do not follow these laws and commits various violations will be fined up to $7,500 per mortgage. Administrative enforcement would also be put in place.  The bill would authorize the Department of Corporations, the Department of Financial Institutions, and the Department of Real Estate to adopt regulations applicable to persons and entities under their respective jurisdictions for purposes of the provisions described above. The bill would provide that a violation of those regulations would be enforceable only by the regulating agency.

The Department of Corporations, the Department of Financial Institutions, and the Department of Real Estate is allowed to adopt any regulations that have to do with Home Ownership.

(4) The bill would state findings and declarations of the Legislature in relation to foreclosures in the state generally, and would state the purposes of the bill.

(5) 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.

The California Constitution requires that the state give money back to local agencies and school districts for some costs that are required by the state. This bill states that no money has to be given back for any reason.

 

Comments are closed.