Bill > AB278

This bill aims to mitigate the negative economic impacts of foreclosures by modifying the nonjudicial foreclosure process to ensure borrowers have a meaningful opportunity to explore and obtain foreclosure prevention alternatives, such as loan modifications. It defines key terms like "mortgage servicer" (the entity managing a loan, excluding trustees in foreclosure) and "foreclosure prevention alternative" (like a loan modification). The bill mandates that mortgage servicers must attempt to contact borrowers before initiating foreclosure proceedings, offering them a chance to discuss their financial situation and explore options. It also establishes requirements for providing borrowers with information about foreclosure alternatives, outlines procedures for evaluating loan modification applications, and creates a "single point of contact" for borrowers seeking assistance. Furthermore, the bill introduces penalties for material violations of these provisions, including potential injunctive relief and damages for borrowers, and clarifies that these new rules generally apply to owner-occupied residential properties.