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 reconveyance or certificate of discharge is recorded, as specified. Existing law imposes various requirements on trustee's sales, including the time and location of the sale, postponement of the sale, and how a postponement of the sale must be announced. This bill would require a sale to be postponed 7 calendar days at the same time and location if an act of force majeure, as defined, prevents access to the sale location for the conduct of the sale. Existing law provides the trustee with specified rights at a trustee's sale, including the right to require every bidder to show evidence of the bidder's ability to deposit with the trustee the full amount of their final bid, as specified. Existing law authorizes the trustee, in the event the trustee accepts a check or a cash equivalent, to withhold the issuance of the trustee's deed to the successful bidder until funds become available to the payee or endorsee as a matter of right, as specified. This bill would provide the trustee the right to require any bid that is not cash to be made directly payable to the trustee, if that requirement is set forth by the trustee in the notice of sale. The bill would authorize the trustee to require the successful bidder to replace the check or cash equivalent with a check or cash equivalent made directly payable to the trustee if necessary for the funds to be made available to the trustee. Existing law provides a prospective owner-occupant and eligible tenant buyer various rights in connection with a trustee's sale. Existing law provides that certain types of trustee's sales are not deemed final until the earliest of various time periods, including 45 days after the trustee's sale, except that during that 45-day period, an eligible bidder may submit a specified bid to the trustee that meets certain requirements, including that the bid be sent to the trustee by certified mail, overnight delivery, or another method that allows for confirmation of the delivery date, and that the bid be received by trustee by a specified date on time, except that on the last day that bids are eligible to be received by the trustee, the trustee is prohibited from receiving any bid not sent by certified mail or overnight mail. This bill would recast that provision to prohibit the trustee, on the last day that bids are eligible to be received by the trustee pursuant to the provisions described above, from receiving any bid not sent by certified mail with the United States Postal Service or by another overnight mail courier service with tracking information that confirms the recipient's signature and the date and time of receipt and delivery.