Signed by Governor Jerry Brown, Jr.

Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that establishes the rights of heirs when assuming a deceased individual's homeowner loan.

Highlights:

• Prohibits a mortgage servicer from recording a notice of default on a home loan upon death of holder unless they have requested and not received the following documentation from a claimant (Sec. 2):

• Reasonable documentation of death of loan holder within 30 days of a written request;

• Reasonable documentation from claimant demonstrating ownership in the real property within 90 days of a written request; and

• Reasonable documentation demonstrating principal residence within the last 6 continuous months.

• Requires a mortgage servicer to provide information to the claimant within 10 days of being deemed a successor of interest, including, but not limited to (Sec. 2):

• Loan balance;

• Interest rates and interest reset dates and amounts;

• Balloon payments and prepayment penalties, if any;

• Default or delinquency status; and

• Monthly payment amounts and payoff amounts.

• Authorizes the successor to assume the deceased borrower’s loan, and, if they qualify, foreclosure prevention (Sec. 2).

• Specifies that a mortgage servicer is not required to provide loan modification to the successor (Sec. 2).

• Specifies that a successor will have all the same rights and remedies as the original loan holder (Sec. 2).

• Specifies that there may be more than 1 successor in interest (Sec. 2).

• Specifies the act is in effect until January 1, 2020 (Sec. 2).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes the rights of heirs when assuming a deceased individual's homeowner loan.

Highlights:

• Prohibits a mortgage servicer from recording a notice of default on a home loan upon death of holder unless they have requested and not received the following documentation from a claimant (Sec. 2):

• Reasonable documentation of death of loan holder within 30 days of a written request;

• Reasonable documentation from claimant demonstrating ownership in the real property within 90 days of a written request; and

• Reasonable documentation demonstrating principal residence within the last 6 continuous months.

• Requires a mortgage servicer to provide information to the claimant within 10 days of being deemed a successor of interest, including, but not limited to (Sec. 2):

• Loan balance;

• Interest rates and interest reset dates and amounts;

• Balloon payments and prepayment penalties, if any;

• Default or delinquency status; and

• Monthly payment amounts and payoff amounts.

• Authorizes the successor to assume the deceased borrower’s loan, and, if they qualify, foreclosure prevention (Sec. 2).

• Specifies that a mortgage servicer is not required to provide loan modification to the successor (Sec. 2).

• Specifies that a successor will have all the same rights and remedies as the original loan holder (Sec. 2).

• Specifies that there may be more than 1 successor in interest (Sec. 2).

• Specifies the act is in effect until January 1, 2020 (Sec. 2).

Full Bill Text