California Assembly Bill 1639 Requires a Foreclosure Mediation Mortgage Workout Program or “MMW”

Real Estate Agent with Cartier Properties, Inc. 01458057

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You know…the more we read about CA the less I am concerned that we are the litigious state that we have the esteemed label of being.

Lot’s of new laws hitting the Halls of Sacramento for consideraton…laws that have already been in place in many other states nationwide…Is CA behind the Legal Eight Ball? 

Here’s another bill

Coming to the CA assembly floor this week.

  1. Allows for the homeowner to have a Face to Face with their Mortgage Company with the assistance of a mediator…
  2. Process begins when the borrower receives a Notice of Default or NOD.
  3. Borrower will recieve an election to participate form.
  4. Borrower must respond with in 30 days.
  5. Must be able to demonstrate the finacnial ability to partake  in a fair resolution.
  6. All foreclsoure activity is ceased during this period.

As always…more to follow.


Here is the bill info:

AB 1639 (Nava, Bass, Lieu) – Mediated Meetings with Your Lender
AB 1639 establishes the Mediated Mortgage Workout Program (MMW).   The MMW will give borrowers the option to request a face-to-face meeting with their servicer/lender and a neutral third party, monitor.   The process will begin when a borrower receives a notice of default (NOD).  At the time of receiving the NOD, the borrower will also receive an election form to participate in the MMW program.  A borrower must respond within 30 days in order to participate and also demonstrate financial capability to participate in the program.  Once a borrower has elected to participate, the servicer/lender must also respond by paying a fee to the administrator of the MMW program, of which half, is refundable to the servicer if a loan modification agreement is reached.  The MMW session will provide an opportunity for the mediator to review the financial condition of the borrower and the offer for modification from the lender and make a determination based on set criteria as to whether a loan modification is appropriate.  During the time in which the borrower participates in the MMW Program, foreclosure activity does not occur on the property at issue.

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