California Foreclosure Prevention Act Sunsets
The California Foreclosure Prevention Act (CFPA) temporarily modified the foreclosure process by requiring mortgage loan servicers to wait an additional 90 days, in addition to the three months already required by law, between the filing of a Notice of Default and proceeding with a Notice of Sale in a foreclosure.
The CFPA was intended to encourage servicers to implement streamlined loan modification programs, and therefore a servicer could obtain an exemption from the additional 90 day requirement by establishing for its regulator that it implemented a comprehensive loan modification program.
The CFPA sunset on January 1, 2011. Therefore, the time period between the filing of a Notice of Default and proceeding with a Notice of Sale is again three months, for all servicers.
TRANSITION FOR SERVICER LicenseES
For Licensees that filed a Notice of Default before the sunset date of the CFPA (January 1, 2011), and proceed with the Notice of Sale on or after the sunset date, the CFPA is no longer operative and therefore the Department will find a Licensee in compliance with the law if the Notice of Sale occurs three or more months after the Notice of Default (see Civil Code Section 2924(a)(2)).
Below is a link to the report required by the CFPA, which provides information on CFPA implementation, including data on the number of servicers who sought and obtained final orders of exemption from the 90-day waiting period in foreclosure sales from their respective regulator. The report also provides the names of the servicers provided the exemption during the time period the CFPA was operative. In addition, the report provides statistical information collected from servicers related to loan modification programs and other workouts from June 15, 2009 through September 30, 2010.
HOW TO OBTAIN ASSISTANCE WITH A LOAN MODIFICATION:
If your loan servicer is federally regulated, you should contact your federal regulator if you are experiencing difficulty with your servicer’s loan modification process.
The Federal Regulator for National Banks is the Office of the Comptroller of the Currency (the OCC), and the contact information is as follows:
Comptroller of the Currency
Customer Assistance Group
1301 McKinney Street Suite 3450
Houston, TX 77010
The following is a partial list of Lenders/Servicers under the jurisdiction of the OCC:
BANK OF AMERICA, NA
WELLS FARGO HOME MORTGAGE
CHASE HOME Finance, LLC
AURORA LOAN SERVICES LLC
AMERICA'S SERVICING COMPANY
U.S. BANK NATIONAL ASSOCIATION
HOME LOAN SERVICES, INC. DBA FIRST FRANKLIN LOAN
NATIONAL CITY MORTGAGE
Servicers Regulated by the Department of Business Oversight
If your loan servicer is regulated by the Department, the Department can assist you with your complaint or inquiry. Please submit a complaint/inquiry form. If you have questions about the process, you may contact the Department‘s toll-free Consumer Services Office: 1-866-275-2677.
To determine if you servicer is Licensed by the Department, please see the Financial Services Licensee Listing which you can find under Popular Department Pages.
The Commissioner of Business Oversight adopted rules entitled, “The California Foreclosure Prevention Act.” The rules clarify the application of Civil Code Sections 2923.52 and 2923.53 under the California Foreclosure Prevention Act. The rules permanently adopted Subchapter 14, Article I, Sections 2031.1, 2031.2, 2031.3, 2031.4, 2031.5, and 2031.6; Article II, Sections 2031.7 and 2031.8; Article III, Section 2031.9; and Article IV, Section 2031.10 to Title 10 of the California Code of Regulations. These rules were filed with the Secretary of State on April 13, 2010 and became effective upon filing with the Secretary of State.
PRO 05/09 -California Foreclosure Prevention Act
- Adopts: Article I, Sections 2031.1, 2031.2, 2031.3, 2031.4, 2031.5, & 2031.6; Article II, Sections 2031.7 & 2031.8; Article III, Section 2031.9; & Article IV, Section 2031.10
- Effective: April 13, 2010
- Sunset: January 1, 2011