SB 900 Summary

• Requires mortgage servicers to contact borrowers before recording notice of default to explore foreclosure alternatives, with 30-day waiting period; extends this requirement indefinitely and adds servicers to existing provisions.

• Prohibits recording notice of default or notice of sale while complete first lien loan modification application is pending; establishes procedures for loan modification applications, denials, and borrower appeal rights (through January 1, 2018).

• Requires mortgage servicers to establish single point of contact for borrowers seeking foreclosure prevention alternatives and provide written notice after sale postponement; applies only to servicers conducting over 175 foreclosure sales annually.

• Mandates all foreclosure-related documents be accurate, complete, and supported by competent evidence; imposes civil penalties up to $7,500 per mortgage for repeated violations by servicers (through January 1, 2018).

• Authorizes borrowers to seek injunctive relief and damages for violations, including treble damages or $50,000 statutory damages for intentional/reckless violations; awards attorney's fees to prevailing borrowers.