SF Bay view- The California Foreclosure Prevention Fraud of 2009 – The California Legislature is now actively collaborating in the bankers’ coup d’état led by Government Sachs. Here are the details:
This is a great editorial on the recent California foreclosure moratorium that is really just more propaghanda to silence and confuse struggling homeowners.
I first reported on the moratorium and called it like it was, BS, back in June.
Here is the kicker….
The requirement for an additional 90 days does not apply to a mortgage loan servicer who has applied for, and received an exemption from the provisions of this new law.
There really should be some type of law making it mandatory that these chumps have x amount of employees in regards to x amount of delinquent loans. If any of these government agencies were to research this, they would find that mortgage servicers are operating at 1000-3000 files per employee. YES, that many! And you want to know how many files a loss mitigation representative can effectively manage, 100-150 max!
Most likely, every home loan servicer will likely make application for an exemption. I can almost guarantee that lenders will not likely have a hard time obtaining an exemption from the law. The good news is that the Secretary of Business, Transportation and Housing is required under the law to maintain a website that lists disclosure of what loan servicers have made application for an exemption, and what the disposition of that application was.
On February 20, 2009, Governor Schwarzenegger signed ABX2 7 and SBX2 7, which established the California Foreclosure Prevention Act. The California Foreclosure Prevention Act modifies the foreclosure process to provide additional time for borrowers to work out loan modifications while providing an exemption for mortgage loan servicers that have implemented a comprehensive loan modification program. Civil Code Section 2923.52 requires an additional 90 day period beyond the period already provided before a Notice of Sale can be given in order to allow all parties to pursue a loan modification to prevent foreclosure of loans meeting certain criteria identified in that section.
A mortgage loan servicer who has implemented a comprehensive loan modification program may file an application for exemption from the provisions of Civil Code Section 2923.52. Approval of this application provides the mortgage loan servicer an exemption from the additional 90-day period before filing the Notice of Sale when foreclosing on real property as designated by this Section.
“UPDATE – As anticipated, this piece of legislation turned out to be nothing more than a piece of Swiss cheese. On June 15, 2009, the date on which the legislation actually became effective, magically almost 47 mortgage lenders, servicers and others involved in foreclosure received a temporary exemption from the law. Amazing, considering the fact that the state had posted on its website that the applications would not even be accepted until June 15, 2009.
“In some instances, not only did the firms receive a temporary exemption, many, such as Bank of America, Citimortgage, EMC Mortgage, Kondur Capital and Select Portfolio Servicing, all received their exemptions WITHIN 24 HOURS OF ENACTMENT OF THE LAW. I am appalled at our legislators who, under the guise of protecting homeowners from foreclosure, wasted our time and taxpayer money to enact a law that is absolutely meaningless.
“Of the largest loan servicing companies in California (the ones who are foreclosing on 90 percent of homes in California), all are now 100 percent exempt from this new law. Here is a link to the current list of exempt lenders as of July 2, 2009 – be sure to check the Department of Corporations, Department of Real Estate and Department of Financial Institutions – all of which can be linked from the above website.
Links from the state of California:
Application for Order of Exemption
Application for Order of Exemption from Civil Code Sction 2923.52(a) California Foreclosure Prevention Act [Note: Adobe Reader 8 or higher is required]
- Notice to servicers providing an overview of the new requirements
- Application – Frequently Asked Questions (FAQ’s).
Consumer Information
Mortgage Loan Servicers who have been granted an exemption
Exemptions under the Department of Corporations
Exemptions under the Department of Financial Institutions
Exemtions under the Department of Real Estate
Regulations
The Office of Administrative law filed the emergency regulations with the Secretary of State on June 1, 2009. The law becomes operative on June 15, 2009.
this foreclosure crisis is a joke they should not have put so many people in homes they could not have afforded