The Year In Review for Default Servicing Legislation
In 2017, Californians enters a brave new world in American politics, one where they are truly outliers. While both the legislative and executive branches of the federal government went Republican, California voters ushered in a “supermajority” of Democrats to serve in both the General Assembly and Senate of the Golden State.
Theoretically, the two-thirds majority makes it possible for Democrats to pass progressive bills and override gubernatorial vetoes without needing the support of Republican legislators. Exactly how this will affect the average California voter remains unclear, however. We do know is that California lawmakers have introduced a bill to protect “California values” against certain campaign promises made by the incoming president of the United States. It seems that we are in for interesting times ahead.
Meanwhile, by the conclusion of the 2015-2016 session, Governor Brown had signed into law 900 out of the nearly 1,000 bills presented to him during the 2015-2016 session of the California Legislature. Here is a brief review of the ones most relevant to the foreclosure industry.
• AB 1974: Recordation of Documents. The bill imposes new recordation duties on local county officials and requires a corrective affidavit to be certified on certain rerecorded documents under penalty of perjury.
• AB 2143: Electronic Recording. This bill broadens county authority to permit electronic recording of documents beyond the heretofore more narrow scope of title companies and underwritten title companies. It also authorizes a county recorder to enter into a contract with an electronic submitter for the delivery of the recording.
• AB 2217: Notary Fees. This bill increases the fee for notary acknowledgements from $10 to $15.
• AB 2291: Property Taxes, Delinquent Taxes, and Partial Payments. This bill allows county tax collectors to charge a fee to recover the reasonable costs of collecting partial payments on tax-defaulted properties.
• AB 2562: Military Service. By deleting references to the date when a reservist is called into active duty, this bill makes it easier for veterans to qualify for deferred payments on mortgages.
• AB 2566: Notaries: Acceptance of Identification. This bill would make it easier for foreign nationals to present the valid ID needed for a property transfer by allowing foreign passports to constitute an ID even when they are not stamped by the United States Citizenship and Immigration Services of the Department of Homeland Security.
• AB 2693: PACE Financing. This bill creates a three-day right to cancel PACE contractual assessments as well as expanding the disclosures that applicants for PACE financing must be provided.
• SB 918: Common Interest Developments. This bill, which modifies the Davis-Stirling Common Interest Development Act , requires common interest housing boards to solicit information from unit owners each year in order to obtain current mailing addresses for association documents.
• SB 983: Mortgages and Deeds of Trust. This bill would increase the base limitations on the amount of trustee’s or attorney’s fees by $50 for each phase of the nonjudicial foreclosure process.
• SB 1150: Mortgage Servicers and Successors in Interest. This bill specifies under what precise circumstances servicers must extend Homeowner’s Bill of Rights protections to successors in interest of deceased borrowers.
About Peak Foreclosure Services
Peak Foreclosure Services, Inc. offers a wide range of default servicing solutions to support and meet the needs of a diverse clientele. Banks, private investors, servicers, and sub-servicers across the country rely on us to effectively navigate the complex and constrained regulatory environment of foreclosures. Our detail-oriented approach and quality service has set a high standard for the industry. Our specialists process non-judicial foreclosures in selected states including Arizona, California, Idaho, Montana, Nevada, North Carolina, and Washington, with affiliates nationwide.