CA SB980

Extends the prohibition on demanding or receiving preperformance compensation, collateral, or powers of attorney for residential mortgage loan modifications from January 1, 2013 to January 1, 2017.

Makes violations of these restrictions a misdemeanor punishable by up to $10,000 in fines and/or one year in county jail for individuals, or up to $50,000 in fines for business entities.

Establishes attorney discipline for violations of mortgage loan modification restrictions under Civil Code Section 2944.6 or 2944.7 until January 1, 2017.

Applies only to mortgages and deeds of trust secured by residential real property containing four or fewer dwelling units.

Exempts lenders who own or service loans from the restrictions when collecting principal, interest, or charges, or accepting federal agency payments under the Making Home Affordable Plan.