ASSEMBLY BILL 1090 (HERTZBERG – 2001)
CHAPTER 560, STATUTES OF 2001
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Civil Code sections 2941 and 2943 were amended in 2001 following legislative passage of Assembly Bill 1090. (See Exhibit A, #1h) These were the only sections affected by the bill. (Id.) Assembly member Robert M. Hertzberg introduced Assembly Bill 1090, relating to the reconveyance of real property, on February 23, 2001. (See Exhibit A, #1a) Assembly Bill 1090 was co-sponsored by ABN AMRO Mortgage, Bank of America, California Federal Bank, California Mortgage Bankers Association, Chase Home Mortgage, Countrywide Home Loans, Federal National Mortgage Association (Fannie Mae), First Nationwide/Cal Fed, Freddie Mac, Homeside Lending, Household International, Mortgage Bankers Association of America, Wells Fargo Bank, and Consumers Union. (See Exhibit A, #9, page 1)
Following its introduction, the Assembly and Senate Committees on Judiciary considered the policy issues raised by the bill. (See Exhibit A, #3 and #7) Assembly Bill 1090 was amended on five occasions, twice in the Assembly and three times in the Senate, before both Houses of the Legislature unanimously passed it. (See Exhibit A, #1b through #1f and #2) Governor Gray Davis signed the enrolled version of the bill on October 5th and the Secretary of State recorded it on October 7th as Chapter 560 of the Statutes of 2001. (See Exhibit A, #1g, #1h, and #2)
The Third Reading analysis prepared by the Office of Senate Floor Analyses describes Assembly Bill 1090 as last amended on August 31, 2001 as follows:
. . . This bill seeks to abrogate a recent California Court of Appeal decision interpreting the Civil Code to require the immediate reconveyance of a real estate trust deed upon the satisfaction of the mortgage loan upon which the deed was based. The bill declares that the intent of existing law is to give the lender 30 days, and the trustee 21 days, to perform their reconveyance duties, so reconveyance occurs within 60 days of the satisfaction of the loan.
However, the bill changes the law prospectively to specify the lender grace period as 30 days for reconveyances occurring after the effective date of the bill.
In addition, the bill reduces the maximum total fees the borrower may be charged for the reconveyance as specified.
(See Exhibit A, #9, pages 1 and 2)