CA AB2189

Expands Section 1632.5 of the Civil Code to include loan modification agreements in addition to loan origination agreements requiring translated disclosures.

Requires supervised financial organizations negotiating primarily in Spanish, Chinese, Tagalog, Vietnamese, or Korean to provide translated loan modification agreement summaries to borrowers no later than three business days after receipt of written application.

Maintains existing penalties of up to $2,500 for first violations, $5,000 for second violations, and $10,000 for subsequent violations by supervised financial organizations.

Becomes operative July 1, 2010, or 90 days after both the Department of Corporations and Department of Financial Institutions issue required forms, whichever is later.