California Assembly Bill 278 commonly referred to as the “Homeowner Bill of Rights” became effective on January 1, 2013. Mortgage servicers could incur penalties up to $7,500 per mortgage if they don’t have a process in place to review documentation or have the “competent and reliable evidence” to prove it. Myron Finley, Chief Legal Officer at Nationwide Title Clearing, recently wrote a white paper explaining the new law and how to prepare for it.
The new law requires documents recorded by or on behalf of a mortgage servicer in connection with a foreclosure, including a declaration, notice of default or sale, assignment of a deed of trust or a substitution of trustee, to be accurate and complete and supported by competent and reliable evidence. Additionally, before recording any such documents, mortgage servicers must ensure they have reviewed the evidence to substantiate the borrower’s default and the right to foreclose.
Nationwide Title Clearing, Inc. offers Property Report Services and Assignment Verification Report services that provide its mortgage servicer clients with the competent and reliable evidence they need to comply with this new law and ultimately to protect homeowners.
Click the below link to download the new white paper: Preparing for the "California Homeowner Bill of Rights" by Myron Finley.