CHAPTER 2. Mortgage [2920. - 2968.]

Chapter 2 enacted 1872.

§§ 2920–2968 · 147 sections

1. ARTICLE 1. Mortgages in General §§ 2920–2944.10 · 91 sections

   • § 2920 (a) A mortgage is a contract by which specific property, including an estate for years in real property, is hypothecated for the performance of an act, without…
   • § 2920.5 For purposes of this article, the following definitions apply: (a) “Mortgage servicer” means a person or entity who directly services a loan, or who is…
   • § 2921 A mortgage may be created upon property held adversely to the mortgagor.
   • § 2922 A mortgage can be created, renewed, or extended, only by writing, executed with the formalities required in the case of a grant of real property.
   • § 2923 The lien of a mortgage is special, unless otherwise expressly agreed, and is independent of possession.
   • § 2923.1 (a) A mortgage broker providing mortgage brokerage services to a borrower is the fiduciary of the borrower, and any violation of the broker’s fiduciary duties…
   • § 2923.3 (a) With respect to residential real property containing no more than four dwelling units, a mortgagee, trustee, beneficiary, or authorized agent shall provide…
   • § 2923.4 The purpose of the act that added this section is to ensure that, as part of the nonjudicial foreclosure process, borrowers are considered for, and have a…
   • § 2923.5 (a) (1) A mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent shall not record a notice of default pursuant to Section 2924 until both of…
   • § 2923.55 (a) A mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent shall not record a notice of default pursuant to Section 2924 until all of the…
   • § 2923.6 (a) The Legislature finds and declares that any duty mortgage servicers may have to maximize net present value under their pooling and servicing agreements is…
   • § 2923.7 (a) When a borrower requests a foreclosure prevention alternative, the mortgage servicer shall promptly establish a single point of contact and provide to the…
   • § 2924 (a) Every transfer of an interest in property, other than in trust, made only as a security for the performance of another act, is to be deemed a mortgage,…
   • § 2924.1 (a) Notwithstanding any other law, the transfer, following the sale, of property in a common interest development, as defined by Section 1351, executed under…
   • § 2924.3 (a) Except as provided in subdivisions (b) and (c), a person who has undertaken as an agent of a mortgagee, beneficiary, or owner of a promissory note secured…
   • § 2924.5 No clause in any deed of trust or mortgage on property containing four or fewer residential units or on which four or fewer residential units are to be…
   • § 2924.6 (a) An obligee may not accelerate the maturity date of the principal and accrued interest on any loan secured by a mortgage or deed of trust on residential…
   • § 2924.7 (a) The provisions of any deed of trust or mortgage on real property which authorize any beneficiary, trustee, mortgagee, or his or her agent or successor in…
   • § 2924.8 (a) Upon posting a notice of sale pursuant to Section 2924f, a trustee or authorized agent shall also post the following notice, in the manner required for…
   • § 2924.9 (a) Unless a borrower has previously exhausted the first lien loan modification process offered by, or through, his or her mortgage servicer described in…
   • § 2924.10 (a) When a borrower submits a complete first lien modification application or any document in connection with a first lien modification application, the…
   • § 2924.11 (a) If a foreclosure prevention alternative is approved in writing prior to the recordation of a notice of default, a mortgage servicer, mortgagee, trustee,…
   • § 2924.12 (a) (1) If a trustee’s deed upon sale has not been recorded, a borrower may bring an action for injunctive relief to enjoin a material violation of Section…
   • § 2924.13 (a) As used in this section: (1) “Borrower” has the same meaning as defined in Section 2929.5. (2) “Mortgage servicer” includes the current mortgage servicer…
   • § 2924.15 (a) Unless otherwise provided, paragraph (5) of subdivision (a) of Section 2924 and Sections 2923.5, 2923.55, 2923.6, 2923.7, 2924.9, 2924.10, 2924.11, and…
   • § 2924.17 (a) A declaration recorded pursuant to Section 2923.5 or pursuant to Section 2923.55, a notice of default, notice of sale, assignment of a deed of trust, or…
   • § 2924.18 (a) (1) If a borrower submits a complete application for a first lien loan modification offered by, or through, the borrower’s mortgage servicer at least five…
   • § 2924.19 (a) (1) If a trustee’s deed upon sale has not been recorded, a borrower may bring an action for injunctive relief to enjoin a material violation of Section…
   • § 2924.20 Consistent with their general regulatory authority, and notwithstanding subdivisions (b) and (c) of Section 2924.18, the Department of Financial Protection and…
   • § 2924.21 A person shall not contact, solicit, or initiate communication with an owner to claim the surplus funds from a foreclosure sale of the owner’s residence before…
   • § 2924.26 (a) Unless acting in the capacity of a trustee, a licensed title company or underwritten title company shall not be liable for a violation of Section 2923.5 or…
   • § 2924a If, by the terms of any trust or deed of trust a power of sale is conferred upon the trustee, the attorney for the trustee, or any duly authorized agent, may…
   • § 2924b (a) Any person desiring a copy of any notice of default and of any notice of sale under any deed of trust or mortgage with power of sale upon real property or…
   • § 2924c (a) (1) Whenever all or a portion of the principal sum of any obligation secured by deed of trust or mortgage on real property or an estate for years therein…
   • § 2924d (a) (1) Commencing with the date that the notice of sale is deposited in the mail, as provided in Section 2924b, and until the property is sold pursuant to the…
   • § 2924e (a) The beneficiary or mortgagee of any deed of trust or mortgage on real property either containing one to four residential units or given to secure an…
   • § 2924f (a) As used in this section and Sections 2924g and 2924h, “property” means real property or a leasehold estate therein, and “calendar week” means Monday…
   • § 2924g (a) (1) All sales of property under the power of sale contained in any deed of trust or mortgage shall be held in the county where the property or some part…
   • § 2924h (a) Each and every bid made by a bidder at a trustee’s sale under a power of sale contained in a deed of trust or mortgage shall be deemed to be an irrevocable…
   • § 2924i (a) This section applies to loans secured by a deed of trust or mortgage on real property containing one to four residential units at least one of which at the…
   • § 2924j (a) Unless an interpleader action has been filed, within 30 days of the execution of the trustee’s deed resulting from a sale in which there are proceeds…
   • § 2924k (a) The trustee, or the clerk of the court upon order to the clerk pursuant to subdivision (d) of Section 2924j, shall distribute the proceeds, or a portion of…
   • § 2924l (a) In the event that a trustee under a deed of trust is named in an action or proceeding in which that deed of trust is the subject, and in the event that the…
   • § 2924m (a) For purposes of this section: (1) “Prospective owner-occupant” means a natural person who presents to the trustee an affidavit or declaration, pursuant to…
   • § 2924n Nothing in this article shall relieve a person deemed the legal owner of real property when the trustee’s deed is recorded from complying with applicable law…
   • § 2924o (a) On and after January 1, 2023, in the case of any real property purchased pursuant to Section 2924m by an eligible bidder described in subparagraphs (C) to…
   • § 2924p (a) For purposes of this section, it is the intent of the Legislature to do all of the following: (1) Allow for prospective owner-occupants and eligible…
   • § 2925 The fact that a transfer was made subject to defeasance on a condition, may, for the purpose of showing such transfer to be a mortgage, be proved (except as…
   • § 2926 A mortgage is a lien upon everything that would pass by a grant of the property.
   • § 2927 A mortgage does not entitle the mortgagee to the possession of the property, unless authorized by the express terms of the mortgage; but after the execution of…
   • § 2928 A mortgage does not bind the mortgagor personally to perform the act for the performance of which it is a security, unless there is an express covenant therein…
   • § 2929 No person whose interest is subject to the lien of a mortgage may do any act which will substantially impair the mortgagee’s security.
   • § 2929.3 (a) (1) A legal owner shall maintain vacant residential property purchased by that owner at a foreclosure sale once that sale is deemed final, or acquired by…
   • § 2929.4 (a) Prior to imposing a fine or penalty for failure to maintain a vacant property that is subject to a notice of default, that is purchased at a foreclosure…
   • § 2929.45 (a) An assessment or lien to recover the costs of nuisance abatement measures taken by a governmental entity with regard to property that is subject to a…
   • § 2929.5 (a) A secured lender may enter and inspect the real property security for the purpose of determining the existence, location, nature, and magnitude of any past…
   • § [2930.] Section Twenty-nine Hundred and Thirty. Title acquired by the mortgagor subsequent to the execution of the mortgage, inures to the mortgagee as security for…
   • § 2931 A mortgagee may foreclose the right of redemption of the mortgagor in the manner prescribed by the Code of Civil Procedure.
   • § 2931a In any action brought to determine conflicting claims to real property, or for partition of real property or an estate for years therein, or to foreclose a…
   • § 2931b In all actions in which the State of California is named a party pursuant to the provisions of Section 2931a and in which real property or an estate for years…
   • § 2931c The Attorney General may bring an action in the courts of this or any other state or of the United States to enforce any lien to secure the payment of taxes or…
   • § 2932 A power of sale may be conferred by a mortgage upon the mortgagee or any other person, to be exercised after a breach of the obligation for which the mortgage…
   • § 2932.2 With respect to residential real property containing no more than four dwelling units, a mortgagee, beneficiary, or authorized agent shall provide to the…
   • § 2932.5 Where a power to sell real property is given to a mortgagee, or other encumbrancer, in an instrument intended to secure the payment of money, the power is part…
   • § 2932.6 (a) Notwithstanding any other provision of law, a financial institution may undertake to repair any property acquired through foreclosure under a mortgage or…
   • § 2933 A power of attorney to execute a mortgage must be in writing, subscribed, acknowledged, or proved, certified, and recorded in like manner as powers of attorney…
   • § 2934 Any assignment of a mortgage and any assignment of the beneficial interest under a deed of trust may be recorded, and from the time the same is filed for…
   • § 2934a (a) (1) The trustee under a trust deed upon real property or an estate for years given to secure an obligation to pay money and conferring no other duties upon…
   • § 2934b Sections 15643 and 18102 of the Probate Code apply to trustees under deeds of trust given to secure obligations.
   • § 2935 When a mortgage or deed of trust is executed as security for money due or to become due, on a promissory note, bond, or other instrument, designated in the…
   • § 2936 The assignment of a debt secured by mortgage carries with it the security.
   • § 2937 (a) The Legislature hereby finds and declares that borrowers or subsequent obligors have the right to know when a person holding a promissory note, bond, or…
   • § 2937.7 In any action affecting the interest of any trustor or beneficiary under a deed of trust or mortgage, service of process to the trustee does not constitute…
   • § 2938 (a) A written assignment of an interest in leases, rents, issues, or profits of real property made in connection with an obligation secured by real property,…
   • § 2939 A recorded mortgage must be discharged by a certificate signed by the mortgagee, his personal representatives or assigns, acknowledged or proved and certified…
   • § 2939.5 Foreign executors, administrators and guardians may satisfy mortgages upon the records of any county in this state, upon producing and recording in the office…
   • § 2940 A certificate of the discharge of a mortgage, and the proof or acknowledgment thereof, must be recorded in the office of the county recorder in which the…
   • § 2941 (a) Within 30 days after any mortgage has been satisfied, the mortgagee or the assignee of the mortgagee shall execute a certificate of the discharge thereof,…
   • § 2941.1 Notwithstanding any other provision of law, if no payoff demand statement is issued pursuant to Section 2943, nothing in Section 2941 shall be construed to…
   • § 2941.5 Every person who willfully violates Section 2941 is guilty of a misdemeanor punishable by fine of not less than fifty dollars ($50) nor more than four hundred…
   • § 2941.7 Whenever the obligation secured by a mortgage or deed of trust has been fully satisfied and the present mortgagee or beneficiary of record cannot be located…
   • § 2941.9 (a) The purpose of this section is to establish a process through which all of the beneficiaries under a trust deed may agree to be governed by beneficiaries…
   • § 2942 Contracts of bottomry or respondentia, although in the nature of mortgages, are not affected by any of the provisions of this Chapter.
   • § 2943 (a) As used in this section: (1) “Beneficiary” means a mortgagee or beneficiary of a mortgage or deed of trust, or his or her assignees. (2) “Beneficiary…
   • § 2943.1 (a) For purposes of this section, the following definitions apply: (1) “Beneficiary” has the same meaning as defined in Section 2943. (2) “Borrower’s…
   • § 2944 None of the provisions of this chapter applies to any transaction or security interest governed by the Commercial Code, except to the extent made applicable by…
   • § 2944.5 No lender, mortgagee, or any third party having an interest in real or personal property shall refuse to accept a policy issued by an admitted insurer solely…
   • § 2944.6 (a) Notwithstanding any other provision of law, any person who negotiates, attempts to negotiate, arranges, attempts to arrange, or otherwise offers to perform…
   • § 2944.7 (a) Notwithstanding any other law, it shall be unlawful for any person who negotiates, attempts to negotiate, arranges, attempts to arrange, or otherwise…
   • § 2944.8 (a) In addition to any liability for a civil penalty pursuant to Section 2944.7, if a person violates Section 2944.7 with respect to a victim who is a senior…
   • § 2944.10 Any action to enforce any cause of action pursuant to Section 2944.7 or 2944.8 shall be commenced within four years after the cause of action accrued. No cause…
2. ARTICLE 1.5. Mortgage Foreclosure Consultants §§ 2945–2945.11 · 13 sections

   • § 2945 (a) The Legislature finds and declares that homeowners whose residences are in foreclosure are subject to fraud, deception, harassment, and unfair dealing by…
   • § 2945.1 The following definitions apply to this chapter: (a) “Foreclosure consultant” means any person who makes any solicitation, representation, or offer to any…
   • § 2945.2 (a) In addition to any other right under law to rescind a contract, an owner has the right to cancel such a contract until midnight of the fifth business day,…
   • § 2945.3 (a) Every contract shall be in writing and shall fully disclose the exact nature of the foreclosure consultant’s services and the total amount and terms of…
   • § 2945.4 It shall be a violation for a foreclosure consultant to: (a) Claim, demand, charge, collect, or receive any compensation until after the foreclosure consultant…
   • § 2945.45 (a) Except as provided in subdivision (b) of Section 2945.1, a person shall not take any action specified in subdivision (a) of Section 2945.1 unless the…
   • § 2945.5 Any waiver by an owner of the provisions of this article shall be deemed void and unenforceable as contrary to public policy. Any attempt by a foreclosure…
   • § 2945.6 (a) An owner may bring an action against a foreclosure consultant for any violation of this chapter. Judgment shall be entered for actual damages, reasonable…
   • § 2945.7 Any person who commits any violation described in Section 2945.4 shall be punished by a fine of not more than ten thousand dollars ($10,000), by imprisonment…
   • § 2945.8 If any provision of this article or the application thereof to any person or circumstance is held to be unconstitutional, the remainder of the article and the…
   • § 2945.9 (a) A foreclosure consultant is liable for all damages resulting from any statement made or act committed by the foreclosure consultant’s representative in any…
   • § 2945.10 (a) Any provision in a contract which attempts or purports to limit the liability of the foreclosure consultant under Section 2945.9 shall be void and shall at…
   • § 2945.11 (a) Any representative, as defined in subdivision (b) of Section 2945.9, deemed to be the agent or employee or both the agent and the employee of the…
3. ARTICLE 2. Mortgage of Real Property §§ 2947–2955.5 · 30 sections

   • § 2947 Any interest in real property which is capable of being transferred may be mortgaged.
   • § 2948 A mortgage of real property may be made in substantially the following form: This mortgage, made the ____ day of ________, in the year ____, by AB, of _____,…
   • § 2948.5 (a) A borrower shall not be required to pay interest on a principal obligation under a promissory note secured by a mortgage or deed of trust on real property…
   • § 2949 (a) No mortgage or deed of trust on real property containing only a single-family, owner-occupied dwelling may be declared in default, nor may the maturity…
   • § 2950 When a grant of real property purports to be an absolute conveyance, but is intended to be defeasible on the performance of certain conditions, such grant is…
   • § 2951 (a) A conventional home mortgage loan originated on or after January 1, 2027, and secured by owner-occupied residential real property containing four or fewer…
   • § 2952 Mortgages and deeds of trust of real property may be acknowledged or proved, certified and recorded, in like manner and with like effect, as grants thereof;…
   • § 2953 Any express agreement made or entered into by a borrower at the time of or in connection with the making of or renewing of any loan secured by a deed of trust,…
   • § 2953.1 As used in this section: (a) “Real property security instrument” shall include any mortgage or trust deed or land contract in or on real property. (b)…
   • § 2953.2 Every real property security instrument which contains or has attached a subordination clause shall contain: (a) At the top of the real property security…
   • § 2953.3 Every subordination agreement shall contain: (a) At the top of the subordination agreement there shall appear in at least 10-point bold type, or, if…
   • § 2953.4 (a) Any subordination clause and any subordination agreement which is executed after the effective date of this act and which does not substantially comply…
   • § 2953.5 (a) Sections 2953.1 through 2953.4 shall not apply to any subordination clause or subordination agreement which expressly states that the subordinating loan…
   • § 2954 (a) (1) No impound, trust, or other type of account for payment of taxes on the property, insurance premiums, or other purposes relating to the property shall…
   • § 2954.1 No lender or person who purchases obligations secured by real property, or any agent of such lender or person, who maintains an impound, trust, or other type…
   • § 2954.2 (a) Every mortgagee of record of real property containing only a one- to four-family residence, when the mortgage is given to secure payment of the balance of…
   • § 2954.4 (a) A charge that may be imposed for late payment of an installment due on a loan secured by a mortgage or a deed of trust on real property containing only a…
   • § 2954.5 (a) Before the first default, delinquency, or late payment charge may be assessed by any lender on a delinquent payment of a loan, other than a loan made…
   • § 2954.6 (a) If private mortgage insurance or mortgage guaranty insurance, as defined in subdivision (a) of Section 12640.02 of the Insurance Code, is required as a…
   • § 2954.65 Within 30 days after notice of cancellation from the insured, a private mortgage insurer or mortgage guaranty insurer shall, if the policy is cancellable,…
   • § 2954.7 Except when a statute, regulation, rule, or written guideline promulgated by an institutional third party applicable to notes or evidence of indebtedness…
   • § 2954.8 (a) Every financial institution that makes loans upon the security of real property containing only a one- to four-family residence and located in this state…
   • § 2954.85 (a) A financial institution that makes loans upon the security of real property containing only a one- to four-family residence and located in this state or…
   • § 2954.9 (a) (1) Except as otherwise provided by statute, where the original principal obligation is a loan for residential property of four units or less, the borrower…
   • § 2954.10 An obligee which accelerates the maturity date of the principal and accrued interest, pursuant to contract, on any loan secured by a mortgage or deed of trust…
   • § 2954.11 (a) As used in this section: (1) “Open-end credit plan” has the meaning set forth in Regulation Z of the Federal Reserve System (12 C.F.R. 226.2(a)(20)). (2)…
   • § 2954.12 (a) Notwithstanding Section 2954.7, and except when a statute, regulation, rule, or written guideline promulgated by an institutional third party applicable to…
   • § 2955 (a) Money held by a mortgagee or a beneficiary of a deed of trust on real property in this state, or held by a vendor on a contract of sale of real property in…
   • § 2955.1 (a) Any lender originating a loan secured by the borrower’s separate interest in a condominium project, as defined in Section 4125 or 6542, which requires…
   • § 2955.5 (a) No lender shall require a borrower, as a condition of receiving or maintaining a loan secured by real property, to provide hazard insurance coverage…
4. ARTICLE 3. Disclosures on Purchase Money Liens on Residential Property §§ 2956–2967 · 12 sections

   • § 2956 In a transaction for the purchase of a dwelling for not more than four families in which there is an arranger of credit, which purchase includes an extension…
   • § 2957 The following definitions shall apply for the purposes of this article: (a) “Arranger of credit” means: (1) A person, other than a party to the credit…
   • § 2958 A disclosure is not required under this article, to a purchaser when that purchaser is entitled to receive, a disclosure pursuant to the Federal…
   • § 2959 The disclosures required by this article shall be made as soon as practicable, but before execution of any note or security documents. If any disclosure is…
   • § 2960 If information disclosed in accordance with this article is subsequently rendered inaccurate as a result of any act, occurrence, or agreement between the…
   • § 2961 Every disclosure required by this article and every act which is to be performed in making that disclosure shall be made in good faith. For the purposes of…
   • § 2962 Any disclosure made pursuant to this article may be amended in writing by the person making the disclosure, provided that any amendment shall be subject to the…
   • § 2963 The disclosures required to both purchaser and vendor by this article are: (a) An identification of the note or other credit documents or security documents…
   • § 2964 The specification of items for disclosure in this article does not limit or abridge any obligation for disclosure created by any other provision of law or…
   • § 2965 The validity of any credit document or of any security document subject to the provisions of this article shall not be invalidated solely because of the…
   • § 2966 (a) In a transaction regulated by this article, which includes a balloon payment note when the term for repayment is for a period in excess of one year, the…
   • § 2967 Any action arising under this article may be brought within two years from the date on which the liability arises, except that where any material disclosure…
5. ARTICLE 4. State of Emergency § 2968 · 1 section

   • § 2968 (a) For purposes of this article, the following definitions apply: (1) “Mortgage servicer” has the same meaning as defined in subdivision (a) of Section…