Chapter 2 - Mortgages

California Civil Code — §§ 3273.10-3273.16

Sections (7)

Amended by Stats. 2021, Ch. 27, Sec. 6. (AB 832) Effective June 28, 2021.

For purposes of this title:

(a)(1) “Borrower” means any of the following:

(A) A natural person who is a mortgagor or trustor or a confirmed successor in interest, as defined in Section 1024.31 of Title 12 of the Code of Federal Regulations.

(B) An entity other than a natural person only if the secured property contains no more than four dwelling units and is currently occupied by one or more residential tenants.

(2)“Borrower” shall not include an individual who has surrendered the secured 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.

(3)Unless the property securing the mortgage contains one or more deed-restricted affordable housing units or one or more affordable housing units subject to a regulatory restriction limiting rental rates that is contained in an agreement with a government agency, the following mortgagors shall not be considered a “borrower”:

(A)A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.

(B)A corporation.

(C)A limited liability company in which at least one member is a corporation.

(4)“Borrower” shall also mean a person who holds a power of attorney for a borrower

described in paragraph (1).

(b)“Effective time period” means the time period between the operational date of this title and December 1, 2021.

(c)(1) “Mortgage servicer” or “lienholder” means a person or entity who directly services a loan or who is responsible for interacting with the borrower, managing the loan account on a daily basis, including collecting and crediting periodic loan payments, managing any escrow account, or enforcing the note and security instrument, either as the current owner of the promissory note or as the current owner’s authorized agent.

(2)“Mortgage servicer” or

“lienholder” also means a subservicing agent to a master servicer by contract.

(3)“Mortgage servicer” shall not include a trustee, or a trustee’s authorized agent, acting under a power of sale pursuant to a deed of trust.

§ 3273.10

Amended by Stats. 2024, Ch. 142, Sec. 6. (AB 295) Effective July 18, 2024.

(a)If a mortgage servicer denies a forbearance request made during the effective time period, the mortgage servicer shall provide written notice to the borrower that sets forth the specific reason or reasons that forbearance was not provided, if both of the following conditions are met:

(1)The borrower was current on payment as of February 1, 2020.

(2)The borrower is experiencing a financial hardship that prevents the borrower from making timely payments on the mortgage obligation due, directly or indirectly, to the COVID-19 emergency.

(b)If the written notice in subdivision (a) cites any defect in the borrower’s request, including

an incomplete application or missing information, that is curable, the mortgage servicer shall do all of the following:

(1)Specifically identify any curable defect in the written notice.

(2)Provide 21 days from the mailing date of the written notice for the borrower to cure any identified defect.

(3)Accept receipt of the borrower’s revised request for forbearance before the aforementioned 21-day period lapses.

(4)Respond to the borrower’s revised request within five business days of receipt of the revised request.

(c)If a mortgage servicer denies a forbearance request made during the effective time period, the declaration required by subdivision (b) of Section 2923.5 shall include the

written notice together with a statement as to whether forbearance was or was not subsequently provided.

(d)A mortgage servicer, mortgagee, or beneficiary of the deed of trust, or an authorized agent thereof, who, with respect to a borrower of a federally backed mortgage, complies with the relevant provisions regarding forbearance in Section 4022 of the federal Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) (Public Law 116-136), including any amendments or revisions to those provisions, shall be deemed to be in compliance with this section. A mortgage servicer of a nonfederally backed mortgage that provides forbearance that is consistent with the requirements of the CARES Act for federally backed mortgages shall be deemed to be in compliance with this section.

§ 3273.11