California Publishes Summary of New Mortgage Foreclosure Laws

Foreclosure Mortgage Servicing

On December 4, the California Department of Corporations published Release No. 65-FS regarding implementation of key parts of the Homeowner Bill of Rights that established new foreclosure requirements. The Release details how the new requirements apply to different groups of servicers depending on the number of foreclosures conducted in the prior year, and identifies and summarizes the requirements that take effect January 1, 2013 and those that are not operative until January 1, 2018. The Release also provides a summary of the key elements of other foreclosure laws enacted in 2012, including those related to enhanced protections for servicemembers, restrictions on loan modification fees, and language requirements for certain default servicing obligations.