AB 3088 is an omnibus law that brings together several past tenant and landlord protection bills. For months, the American Association of Private Lenders has been at the vanguard of the legislative fight against these measures, first with opposition to AB 828, then with opposition to AB 2501, and most recently with opposition to AB 1436. Each of these bills failed to pass on its own. Foreclosure moratoriums, obligatory lender forbearances, and a slew of other attacks on the mortgage lending industry were all part of the prior law.
With the newly passed AB3088, there are several modifications that lenders need to be well informed of. Some of which include;
- There is no mandatory forbearance requirement: If a Covered Borrower asks for loan forbearance, the lender/loan servicer may decline the request if the lender/loan servicer gives the reason(s) for the denial, as well as any curable flaws in the request.
- Expansion of Homeowner’s Bill of Rights: Before recording a Notice of Default on a first position consumer mortgage loan, the borrower was required to go through a notification period. The lender had an affirmative responsibility to make reasonable efforts to contact the borrower to inform them of their delinquency and the possibility of losing their home through foreclosure.
- No Foreclosure Moratoriums: Private lenders may continue to foreclose, but they must adhere to the Homeowner Bill of Rights’ additional notice requirements for 1-4 family residential properties held by tenants. As a private lender, the passing of the AB3088 legislation has had several impacts on the lending process, which lenders need to be aware of. To read more about this legislation, click here.
About Note Servicing Center
Note Servicing Center provides professional, fully compliant loan servicing for private mortgage investors so they can avoid the aggravation of servicing their own loans and just relax and get paid.
Contact us today for more information.
Share This Story, Choose Your Platform!
Related Posts
Disclaimer
The information provided in this article is for general educational and informational purposes only and does not constitute legal, financial, investment, tax, or professional advice. Note Servicing Center, Inc. is a licensed loan servicer and does not provide legal counsel, investment recommendations, or financial planning services. Reading this content does not create an attorney-client, fiduciary, or advisory relationship of any kind.
Nothing in this article constitutes an offer to sell, a solicitation of an offer to buy, or a recommendation regarding any security, promissory note, mortgage note, fractional interest, or other investment product. Any references to notes, yields, returns, or investment structures are illustrative and educational only. Past performance is not indicative of future results, and all investments involve risk, including the potential loss of principal.
Note investing, real estate transactions, and lending activities are subject to federal, state, and local laws that vary by jurisdiction and change over time. Before making any decision based on the information in this article, you should consult with a qualified attorney, licensed financial advisor, certified public accountant, or other appropriate professional who can evaluate your specific circumstances.
While we make reasonable efforts to ensure the accuracy of the information presented, Note Servicing Center, Inc. makes no warranties or representations regarding the completeness, accuracy, or current applicability of any content. We disclaim all liability for actions taken or not taken in reliance on this article.