Bill Text: CA AB1639 | 2009-2010 | Regular Session | Amended
Bill Title: Facilitated Mortgage Workout Program.
Spectrum: Partisan Bill (Democrat 19-0)
Status: (Introduced - Dead) 2010-06-21 - To inactive file on motion of Assembly Member Charles Calderon. [AB1639 Detail]
Download: California-2009-AB1639-Amended.html
BILL NUMBER: AB 1639 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 28, 2010
AMENDED IN ASSEMBLY APRIL 12, 2010
AMENDED IN ASSEMBLY MARCH 15, 2010
INTRODUCED BY Assembly Members Nava, Bass, and Lieu
( Coauthor: Assembly Member
Monning )
(Coauthor: Senator DeSaulnier)
JANUARY 11, 2010
An act to amend Section 2923.5 of, and to add Article 1.7
(commencing with Section 2946) to Chapter 2 of Title 14 of Part 4 of
Division 3 of, the Civil Code, relating to mortgages.
LEGISLATIVE COUNSEL'S DIGEST
AB 1639, as amended, Nava. Mediated
Facilitated Mortgage Workout Program.
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,
among other acts required prior to exercising a power of sale in a
nonjudicial foreclosure proceeding.
This bill would establish , contingent upon receipt of
federal funding for all costs, and only until January 1, 2014,
the Mediated Facilitated Mortgage
Workout (MMW) (FMW) Program. The
program would be a process whereby borrowers and lenders would engage
in mediation conciliation sessions for
purposes of developing a loan modification plan. These
provisions would apply, except as specified, if the loan originated
prior to January 1, 2009, the loan is the 1st mortgage or deed of
trust secured by the property, the property is occupied by the
borrower as the borrower's principal residence, and the unpaid
principal balance is not more than $729,750. The program would
require that specified information regarding the MMW
FMW Program be included with the notice of
default sent to a borrower, as defined, on a loan secured by
residential real property of one- to 4-family dwelling units that is
the primary residence of the borrower, as specified. The bill would
require that this additional notice be recorded in the office of the
county recorder. By expanding the duties of county recorders, the
bill would impose a state-mandated local program.
The bill would provide for an administrator of the program who
would be appointed by the Governor and confirmed by the Senate. The
program would require a borrower who elects to participate in the
program to complete a specified form and return the form to the
administrator of the program not later than 30 calendar days after
receiving the notice of default. The program would require the
borrower to submit other information to the administrator within
10 15 days of requesting to participate
in the program, including tax returns, income verification,
and a specified deposit of funds , and a letter
describing the borrower's financial hardship, as specified .
The program would require a borrower who elects to participate in the
program to deposit with the administrator 50% of the current
mortgage payment each month during participation in the MMW
FMW Program. The bill would also prohibit a
mortgagee, trustee, beneficiary, or authorized agent from reporting
negative credit information to a credit reporting agency about a
borrower who has completed the MMW FMW
Program and accepted a mortgage loan modification. The bill would
impose various administrative fees, and a specified minimum deposit,
payable by the mortgagee, trustee, beneficiary, or authorized agent,
or by the borrower, as specified, who participate
participates in the MMW FMW
Program.
The bill would also provide that the timelines set forth in the
provision governing the exercise of the power of sale, as specified,
would be suspended until the completion of the program, as specified.
The bill would require the administrator of the program, among
other duties, to implement rules and standards for selecting
qualified mediators neutral conciliation
officers and to develop standards for forms and reports
required to implement the program. The bill would also require the
administrator, upon receipt of a borrower's form whereby he or she
elects to participate in the program, to randomly appoint
nominate an individual to serve as
mediator a neutral conciliation officer from a
list of qualified mediators neutral
conciliation officers in the county in which the property is
located. The bill would establish the compensation for a
mediator neutral conciliation officer who
provides his or her services to the program and require a
mediator neutral conciliation officer to use
reasonable efforts to ensure that each MMW
FMW Program is completed within 60 calendar days of the
mediator's neutral conciliation officer's
appointment nomination . The bill
would require the mediator neutral
conciliation officer to prepare a final report, as specified.
The bill would also require, only until January 1, 2015, the
administrator to report quarterly to the Legislature regarding the
MMW FMW Program, as specified. The bill
would also require each mortgagee, trustee, beneficiary, or
authorized agent participating in the program to post specified data
about its loans on its Internet Web site.
These provisions would become operative only upon the issuance of
a notice from the administrator to the Governor and specified other
legislative leaders, and the posting of the notice on an Internet Web
site, declaring that the administrator has the capacity to make the
program available to any borrower in every county who desires to
participate.
The bill would also make related and technical changes.
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, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2923.5 of the Civil
Code is amended to read:
2923.5. (a) (1) A mortgagee, trustee, beneficiary, or authorized
agent may not file a notice of default pursuant to Section 2924 until
30 days after initial contact is made as required by
paragraph paragraphs (2) and (3) or
30 days after satisfying the due diligence requirements as described
in subdivision (g) (f) .
(2) (A) Except as provided under subdivisions (c) and (d) of
Section 2946.1, a mortgagee, trustee, beneficiary, or authorized
agent shall inform the borrower, via certified mail accompanying a
notice of delinquency, that the borrower may request to participate
in the Facilitated Mortgage Workout Program under Article 1.7
(commencing with Section 2946). The contents of this notice and
accompanying documents shall comply with the requirements of Section
2946.3.
(B) (i) A borrower shall have 30 days from receipt of the notice
to request to participate in the Facilitated Mortgage Workout
Program.
(ii) If a borrower chooses to participate in the Facilitated
Mortgage Workout Program, the requirements in paragraph (3) shall be
deemed to be completed.
(iii) A notice of default may not be filed while the borrower
participates in the Facilitated Mortgage Workout Program under
Article 1.7 (commencing with Section 2946).
(2)
(3) A mortgagee, trustee, beneficiary, or
authorized agent shall contact the borrower in person or by telephone
in order to assess the borrower's financial situation and explore
options for the borrower to avoid foreclosure. During the initial
contact, the mortgagee, trustee, beneficiary, or
authorized agent shall advise the borrower that he or she has the
right to request a subsequent meeting and, if requested, the
mortgagee, trustee, beneficiary, or authorized agent shall
schedule the meeting to occur within 14 days. The assessment of the
borrower's financial situation and discussion of options may occur
during the first contact, or at the subsequent meeting scheduled for
that purpose. In either case, the borrower shall be provided the
toll-free telephone number made available by the United States
Department of Housing and Urban Development (HUD) to find a
HUD-certified housing counseling agency. Any meeting may occur
telephonically.
(b) A notice of default filed pursuant to Section 2924 shall
include a declaration that the mortgagee, trustee,
beneficiary, or authorized agent has contacted the borrower, has
tried with due diligence to contact the borrower as required by this
section, or that no contact was required pursuant to subdivision
(h) (g) .
(c) If a mortgagee, trustee, beneficiary, or authorized agent had
already filed the notice of default prior to the enactment of this
section and did not subsequently file a notice of rescission, then
the mortgagee, trustee, beneficiary, or authorized agent shall, as
part of the notice of sale filed pursuant to Section 2924f, include a
declaration that either:
(1) States that the borrower was contacted to assess the borrower'
s financial situation and to explore options for the borrower to
avoid foreclosure.
(2) Lists the efforts made, if any, to contact the borrower in the
event no contact was made.
(d) A mortgagee's, trustee's, beneficiary's, or
authorized agent's loss mitigation personnel may participate by
telephone during any contact required by this section.
(e) For purposes of this section, a "borrower" shall include a
mortgagor or trustor.
(f)
(e) A borrower may designate, with consent given in
writing, a HUD-certified housing counseling agency, attorney, or
other advisor to discuss with the mortgagee, trustee,
beneficiary, or authorized agent, on the borrower's behalf, the
borrowers borrower's financial
situation and options for the borrower to avoid foreclosure. That
contact made at the direction of the borrower shall satisfy the
contact requirements of paragraph (2) of subdivision (a). Any loan
modification or workout plan offered at the meeting by the mortgagee,
trustee, beneficiary, or authorized agent is subject to
approval by the borrower.
(g)
(f) A notice of default may be filed pursuant to
Section 2924 when a mortgagee, trustee, beneficiary, or
authorized agent has not contacted a borrower as required by
paragraph (2) of subdivision (a) provided that the failure to contact
the borrower occurred despite the due diligence of the mortgagee,
trustee, beneficiary, or authorized agent. For purposes of
this section, "due diligence" shall require and mean all of the
following:
(1) A mortgagee, trustee, beneficiary, or authorized
agent shall first attempt to contact a borrower by sending a
first-class letter that includes the toll-free telephone number made
available by HUD to find a HUD-certified housing counseling agency.
(2) (A) After the letter has been sent, the mortgagee,
trustee, beneficiary, or authorized agent shall attempt to
contact the borrower by telephone at least three times at different
hours and on different days. Telephone calls shall be made to the
primary telephone number on file.
(B) A mortgagee, trustee, beneficiary, or authorized
agent may attempt to contact a borrower using an automated system to
dial borrowers, provided that, if the telephone call is answered, the
call is connected to a live representative of the mortgagee,
trustee, beneficiary, or authorized agent.
(C) A mortgagee, trustee, beneficiary, or authorized
agent satisfies the telephone contact requirements of this paragraph
if it determines, after attempting contact pursuant to this
paragraph, that the borrower's primary telephone number and secondary
telephone number or numbers on file, if any, have been disconnected.
(3) If the borrower does not respond within two weeks after the
telephone call requirements of paragraph (2) have been satisfied, the
mortgagee, trustee, beneficiary, or authorized agent
shall then send a certified letter, with return receipt requested.
(4) The mortgagee, trustee, beneficiary, or authorized
agent shall provide a means for the borrower to contact it in a
timely manner, including a toll-free telephone number that will
provide access to a live representative during business hours.
(5) The mortgagee, trustee, beneficiary, or authorized
agent has posted a prominent link on the homepage of its Internet Web
site, if any, to the following information:
(A) Options that may be available to borrowers who are unable to
afford their mortgage payments and who wish to avoid foreclosure, and
instructions to borrowers advising them on steps to take to explore
those options.
(B) A list of financial documents borrowers should collect and be
prepared to present to the mortgagee, trustee,
beneficiary, or authorized agent when discussing options for avoiding
foreclosure.
(C) A toll-free telephone number for borrowers who wish to discuss
options for avoiding foreclosure with their mortgagee, trustee,
beneficiary, or authorized agent.
(D) The toll-free telephone number made available by HUD to find a
HUD-certified housing counseling agency.
(h)
(g) Subdivisions (a), (c), and (g)
(f) shall not apply if any of the following occurs:
(1) The borrower has surrendered the property as evidenced by
either a letter confirming the surrender or delivery of the keys to
the property to the mortgagee, trustee, beneficiary, or authorized
agent.
(2) The borrower has contracted with an organization, person, or
entity whose primary business is advising people who have decided to
leave their homes on how to extend the foreclosure process and avoid
their contractual obligations to mortgagees , trustees, or
beneficiaries.
(3) A case has been filed by the borrower under Chapter 7, 11, 12,
or 13 of Title 11 of the United States Code and the bankruptcy court
has not entered an order closing or dismissing the bankruptcy case,
or granting relief from a stay of foreclosure.
(4) The borrower has completed participation in the Facilitated
Mortgage Workout Program, and participation did not result in a
mortgage loan modification, or other result mutually agreed to by the
borrower and the mortgagee, trustee, beneficiary, or authorized
agent.
(i)
(h) This section shall apply only to mortgages or deeds
of trust recorded from January 1, 2003, to December 31, 2007,
inclusive, that are secured by owner-occupied residential real
property containing no more than four dwelling units. For purposes of
this subdivision, "owner-occupied" means that the residence is the
principal residence of the borrower as indicated to the lender in
loan documents.
(i) For purposes of this section, a "borrower" includes a
mortgagor or trustor.
(j) This section shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date.
SEC. 2. Article 1.7 (commencing with Section 2946)
is added to Chapter 2 of Title 14 of Part 4 of Division 3 of the
Civil Code , to read:
Article 1.7. Facilitated Mortgage Workout Program
2946. For purposes of this article:
(a) "Administrator" means the administrator of the Facilitated
Mortgage Workout (FMW) Program.
(b) "Borrower" includes a mortgagor, trustor, or owner of the
residential real estate property described in the notice of default
sent pursuant to Section 2924.
(c) "Meaningful participation" shall be defined as the following:
(1) Attendance at all conciliation sessions.
(2) Presentation of all required documents and payment of all
required fees.
(d) "Residential real estate property" means residential real
property consisting of one- to four-family dwelling units.
Owner-occupied condominiums shall be considered residential real
estate property within the scope of this program, regardless of the
number of family dwelling units in any single homeowners'
association, complex, or community.
2946.1. (a) This article shall apply if all of the following
conditions exist:
(1) The loan originated prior to January 1, 2009.
(2) The loan at issue is the first mortgage or deed of trust
secured by the property.
(3) The loan is secured by residential real property that is
occupied by the borrower as the borrower's principal residence.
(4) The unpaid principal balance of the mortgage is not more than
seven hundred twenty-nine thousand, seven hundred fifty dollars
($729,750).
(5) A notice of default has been filed on the property pursuant to
Section 2924 or the borrower has received notice pursuant to
paragraph (2) of subdivision (a) of Section 2923.5.
(b) Chapter 2 (commencing with Section 1115) of Division 9 and
Section 703.5 of the Evidence Code shall apply to a conciliation
session conducted pursuant to this article, except that, in the event
of a conflict, the specific provisions of this article shall
prevail.
(c) This article shall not apply if a mortgagee, trustee,
beneficiary, or authorized agent has either of the following:
(1) Written evidence documenting a personal face-to-face meeting
with the borrower for the purpose of discussing loan modification or
foreclosure avoidance options.
(2) Written evidence documenting that the borrower has been
offered a loan modification that would establish a ration of the
borrower's housing-related debt to the borrower's gross income of 38
percent or less through some combination of the following features:
(i) An interest rate reduction for a fixed term of at least five
years.
(ii) An extension of the mortgage term, not to exceed 40 years
from the original date of the loan.
(iii) Deferral of a portion of the principal amount of the unpaid
principal balance until maturity of the loan.
(iv) Reduction of the principal balance.
(v) A loan modification offer consistent with the Home Affordable
Modification Program.
(vi) Other alternatives that reduce the borrower's monthly
payment.
(d) This article shall not apply if the borrower has filed a
petition for bankruptcy and the proceedings have not been finalized.
2946.2. (a) The administrator shall be appointed by the Governor
and confirmed by the Senate.
(b) The administrator shall do all of the following in order to
carry out this article:
(1) Implement rules and standards for choosing qualified neutral
conciliation officers.
(2) Implement rules and standards for ensuring the actual
impartiality and appearance of impartiality by qualified neutral
conciliation officers based on comparable professional standards for
mediators.
(3) Implement rules and standards for the removal of neutral
conciliation officers for good cause.
(4) Develop standards for forms and reports, as may be required to
implement the FMW Program.
(5) Require any additional training for neutral conciliation
officers to meet the goals of this article.
(6) Collect all moneys and fees as may be required to implement
this program.
2946.3. (a) A notice of default sent pursuant to Section 2924 to
a borrower of residential real property that is subject to this
chapter shall include all of the following:
(1) (A) A separate notice, entitled "Opportunity to Meet
Face-to-Face with Your Lender/Loan Servicer and a Neutral
Professional in a Facilitated Mortgage Workout Program," advising the
borrower of his or her right to participate in an FMW Program to
explore options for the borrower to avoid foreclosure. This notice
and all of the documents required to be included with the notice of
default shall be printed in large, boldface type and shall be printed
in English, Spanish, Chinese, Tagalog, and Korean. This separate
notice shall be sent to all borrowers of record. This notice shall be
recorded, in addition to the notice of default, in the office of the
appropriate county recorder.
(B) The notice described in subparagraph (A) shall do all of the
following:
(i) Explain the requirements for participation in the FMW Program
and advise the borrower of the procedures that are to be followed to
make an election to participate in the program.
(ii) Include the name, address, telephone number, facsimile
number, and e-mail address of the mortgagee, trustee, beneficiary, or
authorized agent, and the administrator of the FMW Program, as well
as ten or more independent local housing counseling agencies that are
approved by the United States Department of Housing and Urban
Development. The counseling agency shall not receive any
compensation, either directly or indirectly, from the mortgagee,
trustee, beneficiary or authorized agent, or from any other person or
entity involved in originating or servicing the mortgage. This
subdivision does not prevent a counseling agency from receiving
financial assistance that is provided by the lender as part of
charitable or philanthropic activities.
(2) Three copies of an election form, as developed and approved by
the administrator of the FMW Program, upon which the borrower may
indicate his or her election to either participate in, or waive
participation in, the FMW Program.
(3) Two separate envelopes, one addressed to the mortgagee,
trustee, beneficiary, or authorized agent and one addressed to the
administrator of the FMW Program, for use by the borrower to advise
the mortgagee, trustee, beneficiary, or authorized agent and the
administrator of the borrower's election to participate in the FMW
Program.
(b) This section shall not apply to borrowers who have previously
completed the FMW Program with respect to the loan at issue.
2946.4. (a) If the borrower elects to participate in the FMW
Program, the borrower shall complete the election form and mail a
copy of the election form to the mortgagee, trustee, beneficiary, or
authorized agent and to the administrator not later than 30 calendar
days after receipt of the notice of default. The election form shall
be sent by certified mail, return receipt requested.
(b) The administrator may allow the borrower to elect to
participate in the FMW Program by completing the election form on an
Internet Web site, by submitting the form via e-mail, or by
completing the form over the telephone. The administrator shall
maintain a platform that responsibly records and gives the borrower a
hard copy record of his or her election to participate in the FMW
Program and that record shall be in compliance with recognizable
standards for recording and storing critical electronic information.
(c) Within 15 days of requesting to participate in the FMW
Program, the borrower shall submit all of the following to the
administrator:
(1) Tax returns filed for the prior tax year, if the borrower was
required to file a tax return for that year.
(2) Payroll or other income verification for the previous two
months.
(3) First deposit of funds in accordance with Section 2946.7.
(4) A letter describing the financial hardship that prevents the
borrower from being able to afford his or her current mortgage
payment.
(d) Within 15 days of receiving notice that the borrower has
elected to participate in the FMW Program, the mortgagee, trustee,
beneficiary, or authorized agent shall submit all of the following
documents to the administrator:
(1) The applicable pooling and service agreement, if that
agreement limits or prohibits modification.
(2) Documentary evidence of the terms of the loan and the borrower'
s payment history.
(3) A recent appraisal report on the property.
(4) Documentary evidence of current ownership or chain of custody
of the mortgage note.
(5) The net present value formula that the mortgagee, trustee,
beneficiary, or authorized agent uses.
(e) All documents submitted by the parties shall be kept
confidential by the administrator and the neutral conciliation
officer.
(f) When a borrower has elected to participate in the FMW Program,
the timelines set forth in Section 2924 shall be suspended for the
duration of, and no further action may be taken to exercise the power
of sale until the completion of, the FMW Program, as evidenced by
the neutral conciliation officer's final report as described in
Section 2946.14.
2946.5. A neutral conciliation officer shall be compensated by
the administrator, from payment made by the parties in advance of the
conciliation session, for his or her services at a reasonable hourly
rate to be determined by the administrator. This compensation shall
initially be paid by the mortgagee, trustee, beneficiary, or
authorized agent and, in the event that the mortgage loan is
modified, the borrower shall reimburse the mortgagee, trustee,
beneficiary, or authorized agent for one-half of the total
compensation paid to the neutral conciliation officer. The borrower's
share of the neutral conciliation officer's fees may be added to the
principal balance of the loan if requested by the borrower. If the
parties' efforts to modify the loan fail and the property is sold,
the mortgagee, trustee, beneficiary, or authorized agent, alone,
shall be responsible for the expense of the neutral conciliation
officer's fees.
2946.6. (a) Upon receipt of a borrower's form whereby he or she
elects to participate in the FMW Program the administrator shall
nominate an individual from a list of qualified neutral conciliation
officers available to serve in the county in which the property is
located to act as the neutral conciliation officer for the borrower
and the mortgagee, trustee, beneficiary, or authorized agent. The
neutral conciliation officer shall contact the parties within 15 days
of his or her nomination to disclose any information potentially
affecting his or her impartiality, including any past, present, and
currently expected interests, relationships, and affiliations of a
person, professional, or financial nature, and provide the parties an
opportunity to object to the nomination within 15 days. If neither
party objects, the neutral conciliation officer shall promptly
schedule the first conciliation session of the FMW Program. If the
parties are unable to agree on a neutral conciliation officer after
two nominees, the administrator shall randomly appoint a neutral
conciliation officer from the list of qualified individuals.
(b) (1) The administrator shall notify the mortgagee, trustee,
beneficiary, or authorized agent of the borrower's election to
participate in the FMW Program within 15 days of receipt of the
borrower's election to participate in the program. The mortgagee,
trustee, beneficiary, or authorized agent shall submit an
administrative fee of five hundred dollars ($500), as well as a
minimum deposit in the amount of six hundred dollars ($600) to be
applied toward conciliation fees and all required documentation, to
the administrator within 10 days of the administrator's notification
of the borrower's election. In the event that the mortgage loan is
modified, as part of the modification plan, the borrower shall
reimburse the mortgagee, trustee, beneficiary, or authorized agent
one-half of the total administration and conciliation fees incurred
in the matter as partial reimbursement according to the same terms as
set forth in Section 2946.5. In the event that the parties' efforts
to modify the loan fail and the property is sold by the mortgagee,
trustee, beneficiary, or authorized agent, the mortgagee, trustee,
beneficiary, or authorized agent, alone, shall be responsible for the
program fees.
(2) Failure of the mortgagee, trustee, beneficiary, or authorized
agent to deposit the fees within 10 days of the administrator's
notification of the borrower's election to participate shall result
in a stay of foreclosure proceedings and delay of the FMW Program
until the fees are deposited with an additional penalty of one
hundred dollars ($100) per day for each day after the deadline that
the fees have not been deposited.
2946.7. Any borrower who elects to participate in the FMW Program
shall deposit with the administrator 50 percent of the current
mortgage payment every month during participation in the FMW Program.
The first monthly deposit shall be made within 10 days after
requesting participation in the FMW Program. If the borrower fails to
comply with these terms, the borrower's election shall be deemed to
be canceled and the FMW Program shall be deemed to be completed.
2946.8. A borrower who participates in the FMW Program shall not
be required, as a condition of participation, or as a condition of
acceptance of a modification, to waive any rights and remedies that
may otherwise be available.
2946.9. Unless a mutually agreeable resolution is achieved
sooner, the parties shall meaningfully participate in one or more
facilitated workout sessions for no less than four hours. By mutual
agreement, the parties may extend their participation beyond the
minimum period set forth in this section. Upon the completion of the
minimum period or other agreed period under this section, the parties
may choose to continue their participation or terminate their
efforts.
2946.10. (a) The borrower or borrowers and mortgagee, trustee,
beneficiary, or authorized agent shall attend the FMW Program
sessions in person.
(b) In the event of exigent circumstances, the administrator may
allow either party to be represented by a person with a power of
attorney or other written authorization to represent and bind the
party. In addition, each party may be represented by an attorney or
housing counselor.
(c) No request for a continuance of a facilitated workout session
may be granted, except upon showing of exceptional circumstances. A
request shall be made to the administrator, at least 15 days prior to
the scheduled conciliation session detailing the exceptional
circumstances that require the continuance.
(d) The borrower and mortgagee, trustee, beneficiary, or
authorized agent may agree on the terms of a loan modification which
may include any or all of the following features:
(1) An interest rate reduction for a fixed term of at least five
years.
(2) An extension of the mortgage term, not to exceed 40 years from
the original date of the loan.
(3) Deferral
of a portion of the principal amount of the unpaid principal balance
until maturity of the loan.
(4) Reduction of the principal balance.
(5) Compliance with a federally mandated loan modification
program.
(6) Other alternatives that may reduce the borrower's monthly
payment to 31 percent or less of the borrower's debt-to-income ratio
and that are designed to meet long-term sustainability for the
borrower.
(7) Nothing in this section shall be construed to prevent a
creditor from offering or accepting alternatives in writing to
foreclosure, such as a short sale or deed-in-lieu of foreclosure, but
only if the borrower requests these alternatives, rejects a loan
modification offered pursuant to this section, or does not qualify
for a loan modification pursuant to this section.
(e) If a borrower has failed to meaningfully participate in the
FMW Program, the FMW Program shall be suspended. If the borrower
cures the noncompliance to the satisfaction of the administrator
within 10 days of notice of failure to comply, the administrator
shall rescind suspension of the conciliation sessions and the FMW
Program will be continued. If the borrower fails to cure
noncompliance, the FMW program shall be suspended and unused
conciliation fees shall be refunded to the mortgagee, trustee,
beneficiary, or authorized agent.
(f) If a mortgagee, trustee, beneficiary, or authorized agent
fails to meaningfully participate in the FMW Program, the FMW Program
shall be suspended. During the suspension of the program for failure
to meaningfully participate, the mortgagee, trustee, beneficiary, or
authorized agent may not pursue further foreclosure actions until
such time as the mortgagee, trustee, beneficiary, or authorized agent
cures the noncompliance.
2946.11. A mortgagee, trustee, beneficiary, or authorized agent
shall not report negative credit information about a borrower to a
credit reporting agency if the borrower has successfully participated
in the FMW Program and a mortgage loan modification has been
accepted.
2946.12. A borrower shall not be responsible for fees, late
payment charges, or other monetary penalties while the FMW Program or
final report is pending.
2946.13. The neutral conciliation officer shall use reasonable
efforts to ensure that each FMW Program is completed within 60
calendar days of the conciliator's nomination.
2946.14. (a) The neutral conciliation officer's final report
shall be submitted to the administrator within 10 days of completion
of the conciliation session and shall state whether a mutually
acceptable resolution was reached between the parties.
(b) The final report shall be sent by first-class mail or via
electronic means to the borrower, mortgagee, trustee, beneficiary, or
authorized agent, and the administrator and shall include a
statement that the FMW Program has been completed.
2946.15. (a) (1) The administrator shall report quarterly to the
Legislature regarding the performance of the FMW Program, including
all of the following information:
(A) The number of homeowners who attend a conciliation session
prior to notice of default.
(B) The number of homeowners who attend a conciliation session
after receiving a notice of default.
(C) The number of conciliation sessions suspended because of lack
of meaningful participation by the borrower.
(D) The number of conciliation sessions suspended because of lack
of meaningful participation on the part of the mortgagee, trustee,
beneficiary, or authorized agent.
(E) The number of conciliation sessions that result in a loan
modification.
(F) The number of conciliation sessions that result in a solution
other than a loan modification.
(2) (A) The requirement for submitting a report pursuant to
paragraph (1) is inoperative on January 1, 2015, pursuant to Section
10231.5 of the Government Code.
(B) A report to be submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government Code.
(b) Each mortgagee, trustee, beneficiary, or authorized agent
participating in the FMW Program shall post public data reports on a
quarterly basis on its Internet Web site detailing the following:
(1) The number of loans that have been modified through the FMW
Program and the type of modification.
(2) The final disposition of loans that were in the FMW Program
but not modified.
(3) The final disposition of loans that did not go through in the
FMW Program.
(A) The type of loans in a portfolio serviced by others,
delineated by prime, subprime, and nontraditional.
(B) The loans in a portfolio or serviced by others that are
securitized.
(C) The number of home retention actions.
(D) Redefault rates for portfolio loans and loans serviced for
others.
(E) The default rates for portfolio loans and loans serviced for
others.
(F) The default rates of loans modified in 2008 by changes in
payment.
(G) Newly initiated home retention actions compared with
foreclosure actions.
(H) Completed foreclosures and other home forfeiture actions.
(I) The overall portfolio performance by percentage.
(J) The performance of government guaranteed loans, by percentage.
(K) The performance of government sponsored enterprise loans, by
percentage.
(L) Seriously delinquent mortgages, by percentage.
(M) Home Affordable Modification Program actions by investor and
risk category.
(N) Changes in loan terms made by modifications during 2009.
(O) Changes in monthly principal and interest payments owing to
modification, by the number of modifications.
(P) The number of modified loans, 30 or more days delinquent.
(Q) The number of modified loans, 60 or more days delinquent.
(R) The number of modified loans, 90 or more days delinquent.
2946.16. Nothing in this article shall prevent a mortgagee,
trustee, beneficiary, or authorized agent from requesting mediation
under the FMW program.
2946.17. This article shall become inoperative on January 1,
2014.
SEC. 3. The provisions imposing obligations upon
borrowers, mortgagees, trustees, beneficiaries, and authorized agents
under this act shall become operative only upon issuance of a notice
to the Governor by the administrator declaring that the rules,
standards, forms, training, lists, collection, and payment provisions
required by Section 2946.2 have been completed such that the
administrator has the capacity to make the program available to any
borrower in every county of the state who desires to participate. The
notice required under this section shall be sent to the Chair of the
Assembly Committee on Judiciary and the Chair of the Senate
Committee on Judiciary, as well as the Chair of the Assembly
Committee on Banking and Finance and the Chair of the Senate
Committee on Banking, Finance and Insurance, and posted on the
Internet Web site of the administrator.
SEC. 4. If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.
SEC. 5. This act shall become operative only upon
the receipt of federal funding for all costs.
SECTION 1. Section 2923.5 of the Civil Code is
amended to read:
2923.5. (a) (1) A mortgagee, trustee, beneficiary, or authorized
agent may not file a notice of default pursuant to Section 2924 until
30 days after initial contact is made as required by paragraphs (2)
and (3) or 30 days after satisfying the due diligence requirements as
described in subdivision (f).
(2) (A) A mortgagee, trustee, beneficiary, or authorized agent
shall inform the borrower, via certified mail accompanying a notice
of delinquency, that the borrower may request to participate in the
Mediated Mortgage Workout Program under Article 1.7 (commencing with
Section 2946). The notice shall include, in boldface type, the
telephone number, e-mail address, and Internet Web site for the
administrator of the Mediated Mortgage Workout Program.
(B) (i) A borrower shall have 30 days from receipt of the notice
to request participation in the Mediated Mortgage Workout Program.
(ii) If a borrower chooses to participate in the Mediated Mortgage
Workout Program, the requirements in paragraph (3) shall be deemed
to be completed.
(iii) A notice of default may not be filed while the borrower
participates in the Mediated Mortgage Workout Program under Article
1.7 (commencing with Section 2946).
(3) A mortgagee, trustee, beneficiary, or authorized agent shall
contact the borrower in person or by telephone in order to assess the
borrower's financial situation and explore options for the borrower
to avoid foreclosure. During the initial contact, the mortgagee,
trustee, beneficiary, or authorized agent shall advise the borrower
that he or she has the right to request a subsequent meeting and, if
requested, the mortgagee, trustee, beneficiary, or authorized agent
shall schedule the meeting to occur within 14 days. The assessment of
the borrower's financial situation and discussion of options may
occur during the first contact, or at the subsequent meeting
scheduled for that purpose. In either case, the borrower shall be
provided the toll-free telephone number made available by the United
States Department of Housing and Urban Development (HUD) to find a
HUD-certified housing counseling agency. Any meeting may occur
telephonically.
(b) A notice of default filed pursuant to Section 2924 shall
include a declaration that the mortgagee, trustee, beneficiary, or
authorized agent has contacted the borrower, has tried with due
diligence to contact the borrower as required by this section, or
that no contact was required pursuant to subdivision (g).
(c) If a mortgagee, trustee, beneficiary, or authorized agent had
already filed the notice of default prior to the enactment of this
section and did not subsequently file a notice of rescission, then
the mortgagee, trustee, beneficiary, or authorized agent shall, as
part of the notice of sale filed pursuant to Section 2924f, include a
declaration that either:
(1) States that the borrower was contacted to assess the borrower'
s financial situation and to explore options for the borrower to
avoid foreclosure.
(2) Lists the efforts made, if any, to contact the borrower in the
event no contact was made.
(d) A mortgagee's, trustee's, beneficiary's, or authorized agent's
loss mitigation personnel may participate by telephone during any
contact required by this section.
(e) A borrower may designate, with consent given in writing, a
HUD-certified housing counseling agency, attorney, or other adviser
to discuss with the mortgagee, trustee, beneficiary, or authorized
agent, on the borrower's behalf, the borrower's financial situation
and options for the borrower to avoid foreclosure. That contact made
at the direction of the borrower shall satisfy the contact
requirements of paragraph (2) of subdivision (a). Any loan
modification or workout plan offered at the meeting by the mortgagee,
trustee, beneficiary, or authorized agent is subject to approval by
the borrower.
(f) A notice of default may be filed pursuant to Section 2924 when
a mortgagee, trustee, beneficiary, or authorized agent has not
contacted a borrower as required by paragraph (2) of subdivision (a)
provided that the failure to contact the borrower occurred despite
the due diligence of the mortgagee, trustee, beneficiary, or
authorized agent. For purposes of this section, "due diligence" shall
require and mean all of the following:
(1) A mortgagee, trustee, beneficiary, or authorized agent shall
first attempt to contact a borrower by sending a first-class letter
that includes the toll-free telephone number made available by HUD to
find a HUD-certified housing counseling agency.
(2) (A) After the letter has been sent, the mortgagee, trustee,
beneficiary, or authorized agent shall attempt to contact the
borrower by telephone at least three times at different hours and on
different days. Telephone calls shall be made to the primary
telephone number on file.
(B) A mortgagee, trustee, beneficiary, or authorized agent may
attempt to contact a borrower using an automated system to dial
borrowers, provided that, if the telephone call is answered, the call
is connected to a live representative of the mortgagee, trustee,
beneficiary, or authorized agent.
(C) A mortgagee, trustee, beneficiary, or authorized agent
satisfies the telephone contact requirements of this paragraph if it
determines, after attempting contact pursuant to this paragraph, that
the borrower's primary telephone number and secondary telephone
number or numbers on file, if any, have been disconnected.
(3) If the borrower does not respond within two weeks after the
telephone call requirements of paragraph (2) have been satisfied, the
mortgagee, beneficiary, or authorized agent shall then send a
certified letter, with return receipt requested.
(4) The mortgagee, trustee, beneficiary, or authorized agent shall
provide a means for the borrower to contact it in a timely manner,
including a toll-free telephone number that will provide access to a
live representative during business hours.
(5) The mortgagee, trustee, beneficiary, or authorized agent has
posted a prominent link on the homepage of its Internet Web site, if
any, to the following information:
(A) Options that may be available to borrowers who are unable to
afford their mortgage payments and who wish to avoid foreclosure, and
instructions to borrowers advising them on steps to take to explore
those options.
(B) A list of financial documents borrowers should collect and be
prepared to present to the mortgagee, beneficiary, or authorized
agent when discussing options for avoiding foreclosure.
(C) A toll-free telephone number for borrowers who wish to discuss
options for avoiding foreclosure with their mortgagee, beneficiary,
or authorized agent.
(D) The toll-free telephone number made available by HUD to find a
HUD-certified housing counseling agency.
(g) Subdivisions (a), (c), and (f) shall not apply if any of the
following occurs:
(1) The borrower has surrendered the property as evidenced by
either a letter confirming the surrender or delivery of the keys to
the property to the mortgagee, trustee, beneficiary, or authorized
agent.
(2) The borrower has contracted with an organization, person, or
entity whose primary business is advising people who have decided to
leave their homes on how to extend the foreclosure process and avoid
their contractual obligations to mortgagees or beneficiaries.
(3) A case has been filed by the borrower under Chapter 7, 11, 12,
or 13 of Title 11 of the United States Code and the bankruptcy court
has not entered an order closing or dismissing the bankruptcy case,
or granting relief from a stay of foreclosure.
(4) The borrower has completed participation in the Mediated
Mortgage Workout Program, and participation did not result in a
mortgage loan modification, or other result mutually agreed to by the
borrower and the mortgagee, trustee, beneficiary, or authorized
agent.
(h) This section shall apply only to mortgages or deeds of trust
recorded from January 1, 2003, to December 31, 2007, inclusive, that
are secured by owner-occupied residential real property containing no
more than four dwelling units. For purposes of this subdivision,
"owner-occupied" means that the residence is the principal residence
of the borrower as indicated to the lender in loan documents.
(i) For purposes of this section, a "borrower" includes a
mortgagor or trustor.
(j) This section shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date.
SEC. 2. Article 1.7 (commencing with Section
2946) is added to Chapter 2 of Title 14 of Part 4 of Division 3 of
the Civil Code, to read:
Article 1.7. Mediated Mortgage Workout Program
2946. For purposes of this article:
(a) "Administrator" means the administrator of the Mediated
Mortgage Workout (MMW) Program.
(b) "Borrower" includes a mortgagor, trustor, or owner of the
residential real estate property described in the notice of default
sent pursuant to Section 2924.
(c) "Meaningful participation" shall be defined as the following:
(1) Attendance at all mediation sessions.
(2) Presentation of all required documents and payment of all
required fees.
(d) "Residential real estate property" means residential real
property consisting of one- to four-family dwelling units.
Owner-occupied condominiums shall be considered residential real
estate property within the scope of this program, regardless of the
number of family dwelling units in any single homeowners'
association, complex, or community.
2946.1. (a) This article shall apply to a loan secured by
residential real property that is the primary residence of the
borrower and for which a notice of default has been filed pursuant to
Section 2924.
(b) Chapter 2 (commencing with Section 1115) of Division 9 and
Section 703.5 of the Evidence Code shall apply to a mediation
conducted pursuant to this article.
2946.2. (a) The administrator shall be appointed by the Governor
and confirmed by the Senate.
(b) The administrator shall do all of the following in order to
carry out this article:
(1) Implement rules and standards for choosing qualified
mediators.
(2) Implement rules and standards for the removal of mediators for
good cause.
(3) Develop standards for forms and reports, as may be required to
implement the MMW Program.
(4) Require additional training for mediators to meet the goals of
this article.
(5) Collect all moneys and fees as may be required to implement
this program.
2946.3. (a) A notice of default sent pursuant to Section 2924 to
a borrower of residential real property that is subject to this
chapter shall include all of the following:
(1) (A) A separate notice, entitled "Opportunity to Meet
Face-to-Face with Your Lender/Loan Servicer and a Neutral
Professional in a Mediated Mortgage Workout Program," advising the
borrower of his or her right to participate in an MMW Program to
explore options for the borrower to avoid foreclosure. This notice
and all of the documents required to be included with the notice of
default shall be printed in large, boldface type and shall be printed
in English, Spanish, Chinese, Tagalog, and Korean. This separate
notice shall be sent to all borrowers of record. This notice shall be
recorded, in addition to the notice of default, in the office of the
appropriate county recorder.
(B) The notice described in subparagraph (A) shall do all of the
following:
(i) Explain the requirements for participation in the MMW Program
and advise the borrower of the procedures that are to be followed to
make an election to participate in the program.
(ii) Include the name, address, telephone number, facsimile
number, and e-mail address of the mortgagee, trustee, beneficiary, or
authorized agent, and the administrator of the MMW Program, as well
as two or more local housing counseling agencies that are approved by
the United States Department of Housing and Urban Development.
(iii) Advise the borrower that loan counselors are prohibited from
collecting an advance fee.
(2) Three copies of an election form, as developed and approved by
the administrator of the MMW Program, upon which the borrower may
indicate his or her election to either participate in, or waive
participation in, the MMW Program.
(3) Two separate envelopes, one addressed to the mortgagee,
trustee, beneficiary, or authorized agent and one addressed to the
administrator of the MMW Program, for use by the borrower to advise
the mortgagee, trustee, beneficiary, or authorized agent and the
administrator of the borrower's election to participate in the MMW
Program.
(b) This section shall not apply to borrowers who have previously
completed the MMW Program.
2946.4. (a) If the borrower elects to participate in the MMW
Program, the borrower shall complete the election form and mail a
copy of the election form to the mortgagee, trustee, beneficiary, or
authorized agent and to the administrator not later than 30 calendar
days after receipt of the notice of default. The election form shall
be sent by certified mail, return receipt requested.
(b) The administrator may allow the borrower to elect to
participate in the MMW Program by completing the election form on an
Internet Web site, by submitting the form via e-mail, or by
completing the form over the telephone. The administrator shall
maintain a platform that responsibly records and gives the borrower a
hard copy record of his or her election to participate in the MMW
Program and that record shall be in compliance with recognizable
standards for recording and storing critical electronic information.
(c) Within 10 days of requesting to participate in the MMW
Program, the borrower shall submit all of the following to the
administrator:
(1) Tax returns filed for the prior tax year, if the borrower was
required to file a tax return for that year.
(2) Payroll or other income verification for the previous two
months.
(3) First deposit of funds in accordance with Section 2946.7.
(d) Within 10 days of receiving notice that the borrower has
elected to participate in the MMW Program, the mortgagee, trustee,
beneficiary, or authorized agent shall submit all of the following
documents to the administrator:
(1) The applicable Pooling and Service Agreement, if any.
(2) The loan application, loan origination documents, appraisal,
and payment history.
(3) The original note and assignments or certificate regarding a
lost document.
(4) Documentary evidence of current ownership or chain of custody
of the mortgage note.
(5) The net present value formula that the mortgagee, trustee,
beneficiary, or authorized agent uses.
(e) When a borrower has elected to participate in the MMW Program,
the timelines set forth in Section 2924 shall be suspended for the
duration of, and no further action may be taken to exercise the power
of sale until the completion of, the MMW Program, as evidenced by
the mediator's final report as described in Section 2946.14.
2946.5. A mediator shall be compensated by the administrator,
from payment made by the parties in advance of the mediation, for his
or her services at the hourly rate of one hundred fifty dollars
($150). This compensation shall initially be paid by the mortgagee,
trustee, beneficiary, or authorized agent and, in the event that the
mortgage loan is modified, the borrower shall reimburse the
mortgagee, trustee, beneficiary, or authorized agent for one-half of
the total compensation paid to the mediator. The borrower's share of
the mediator's fees may be added to the principal balance of the loan
if requested by the borrower. If the parties' efforts to modify the
loan fail and the property is sold, the mortgagee,
trustee, beneficiary, or authorized
agent, alone, shall be responsible for the expense of the mediator's
fees.
2946.6. (a) Upon receipt of a borrower's form whereby he or she
elects to participate in the MMW Program the administrator shall
randomly appoint an individual from a list of qualified mediators
available to serve in the county in which the property is located to
act as the mediator for the borrower and the mortgagee, trustee,
beneficiary, or authorized agent. The mediator shall contact the
parties within 15 days of his or her appointment to schedule the
first session of the MMW Program.
(b) (1) The administrator shall notify the mortgagee, trustee,
beneficiary, or authorized agent of the borrower's election to
participate in the MMW Program within 15 days of receipt of the
borrower's election to participate in the program. The mortgagee,
trustee, beneficiary, or authorized agent shall submit an
administrative fee of five hundred dollars ($500), as well as a
minimum deposit in the amount of six hundred dollars ($600) to be
applied toward mediation fees and all required documentation, to the
administrator within 10 days of the administrator's notification of
the borrower's election. In the event that the mortgage loan is
modified, as part of the modification plan, the borrower shall
reimburse the mortgagee, trustee, beneficiary, or authorized agent
two hundred fifty dollars ($250) as partial reimbursement of this fee
according to the same terms as set forth in Section 2946.5. In the
event that the parties' efforts to modify the loan fail and the
property is sold by the mortgagee, trustee, beneficiary, or
authorized agent, the mortgagee, trustee, beneficiary, or authorized
agent, alone, shall be responsible for the program fee.
(2) Failure of the mortgagee, trustee, beneficiary, or authorized
agent to deposit the fee within 10 days of the administrator's
notification of the borrower's election to participate shall result
in a stay of foreclosure proceedings and delay of the MMW Program
until the fee is deposited with an additional penalty of one hundred
dollars ($100) per day for each day after the deadline that the fee
has not been deposited.
2946.7. Any borrower who elects to participate in the MMW Program
shall deposit with the administrator 50 percent of the current
mortgage payment every month during participation in the MMW Program.
The first monthly deposit shall be made within 10 days after
requesting participation in the MMW Program. If the borrower fails to
comply with these terms, the borrower's election shall be deemed to
be canceled and the MMW Program shall be deemed to be completed.
2946.8. A borrower who participates in the MMW Program shall not
be required, as a condition of participation, or as a condition of
acceptance of a modification, to waive any rights and remedies that
may otherwise be available.
2946.10. (a) The borrower or borrowers and mortgagee, trustee,
beneficiary, or authorized agent shall attend the MMW Program
sessions in person.
(b) In the event of exigent circumstances, the administrator may
allow either party to be represented by a person with a power of
attorney or other written authorization to represent and bind the
party. In addition, each party may be represented by an attorney or
housing counselor. However, no attorney, other representative, or
loan counselor appearing on behalf of the borrower may receive an
advance fee for any services rendered in connection with the MMW
Program.
(c) No request for a continuance of an MMW Program session may be
granted, except upon showing of extraordinary circumstances. A
request shall be made to the administrator, at least 15 days prior to
the scheduled mediation detailing the extraordinary circumstances
that require the continuance. Any request for continuance that occurs
within 15 days of the scheduled mediation shall be accompanied by a
three-hundred-dollar ($300) deposit to apply toward the mediator's
fee. If the requested continuance is granted, the administrator shall
levy a fee of three hundred dollars ($300) for the benefit of the
mediator.
(d) The borrower and mortgagee, trustee, beneficiary, or
authorized agent may agree on the terms of a loan modification which
may include any or all of the following features:
(1) An interest rate reduction for a fixed term of at least five
years.
(2) An extension of the mortgage term, not to exceed 40 years from
the original date of the loan.
(3) Deferral of a portion of the principal amount of the unpaid
principal balance until maturity of the loan.
(4) Reduction of the principal balance.
(5) Compliance with a federally mandated loan modification
program.
(6) Other alternatives that may reduce the borrower's monthly
payment to 31 percent or less of the borrower's debt-to-income ratio
and that are designed to meet long-term sustainability for the
borrower.
(7) Nothing in this section shall be construed to prevent a
creditor from offering or accepting alternatives in writing to
foreclosure, such as a short sale or deed-in-lieu of foreclosure, but
only if the borrower requests these alternatives, rejects a loan
modification offered pursuant to this section, or does not qualify
for a loan modification pursuant to this section.
(e) If a borrower has failed to meaningfully participate in the
MMW Program, the MMW Program shall be suspended. If the borrower
cures the noncompliance to the satisfaction of the administrator
within 10 days of notice of failure to comply, the administrator
shall rescind suspension of the mediation sessions and the MMW
Program will be continued.
(f) If a mortgagee, trustee, beneficiary, or authorized agent
fails to meaningfully participate in the MMW Program, the MMW Program
shall be suspended. During the suspension of the program for failure
to meaningfully participate, the mortgagee, trustee, beneficiary, or
authorized agent may not pursue further foreclosure actions until
such time as the mortgagee, trustee, beneficiary, or authorized agent
cures the noncompliance.
2946.11. A mortgagee, trustee, beneficiary, or authorized agent
shall not report negative credit information about a borrower to a
credit reporting agency if the borrower has successfully participated
in the MMW Program and a mortgage loan modification has been
accepted.
2946.12. A borrower shall not be responsible for fees, late
payment charges, or other monetary penalties while the MMW Program or
final report is pending.
2946.13. The mediator shall use reasonable efforts to ensure that
each MMW Program is completed within 60 calendar days of the
mediator's appointment.
2946.14. (a) The mediator's final report shall be submitted to
the administrator within 10 days of completion of the mediation and
shall state whether a mutually acceptable resolution was reached
between the parties.
(b) The final report shall be sent by first-class mail or via
electronic means to the borrower, mortgagee, trustee, beneficiary, or
authorized agent, and the administrator and shall include a
statement that the MMW Program has been completed.
2946.15. (a) (1) The administrator shall report quarterly to the
Legislature regarding the performance of the MMW Program, including
all of the following information:
(A) The number of homeowners who attend mediation prior to notice
of default.
(B) The number of homeowners who attend mediation after receiving
a notice of default.
(C) The number of mediations suspended because of lack of
meaningful participation by the borrower.
(D) The number of mediations suspended because of lack of
meaningful participation on the part of the mortgagee, trustee,
beneficiary, or authorized agent.
(E) The number of mediations that result in a loan modification.
(F) The number of mediations that result in a solution other than
a loan modification.
(2) (A) The requirement for submitting a report pursuant to
paragraph (1) is inoperative on January 1, 2015, pursuant to Section
10231.5 of the Government Code.
(B) A report to be submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government Code.
(b) Each mortgagee, trustee, beneficiary, or authorized agent
participating in the MMW Program shall post public data reports on a
quarterly basis on its Internet Web site detailing the following:
(1) The number of loans that have been modified through the MMW
Program and the type of modification.
(2) The final disposition of loans that were in the MMW Program
but not modified.
(3) The final disposition of loans that did not go through in the
MMW Program.
(A) The type of loans in a portfolio serviced by others,
delineated by prime, subprime, and nontraditional.
(B) The loans in a portfolio or serviced by others that are
securitized.
(C) The number of home retention actions.
(D) Redefault rates for portfolio loans and loans serviced for
others.
(E) The default rates for portfolio loans and loans serviced for
others.
(F) The default rates of loans modified in 2008 by changes in
payment.
(G) Newly initiated home retention actions compared with
foreclosure actions.
(H) Completed foreclosures and other home forfeiture actions.
(I) The overall portfolio performance by percentage.
(J) The performance of government guaranteed loans, by percentage.
(K) The performance of government sponsored enterprise loans, by
percentage.
(L) Seriously delinquent mortgages, by percentage.
(M) Home Affordable Modification Program actions by investor and
risk category.
(N) Changes in loan terms made by modifications during 2009.
(O) Changes in monthly principal and interest payments owing to
modification, by the number of modifications.
(P) The number of modified loans, 30 or more days delinquent.
(Q) The number of modified loans, 60 or more days delinquent.
(R) The number of modified loans, 90 or more days delinquent.
SEC. 3. If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.
