SB 818 Summary

• Reenacts key provisions of the California Homeowner Bill of Rights to establish protections for borrowers facing foreclosure on first lien mortgages of owner-occupied residential properties with four or fewer units

• Prohibits mortgage servicers foreclosing on more than 175 properties from recording a notice of default or sale, or conducting a trustee's sale while a borrower has a pending complete first lien loan modification application submitted at least 5 business days before the scheduled sale

• Requires mortgage servicers to provide borrowers with written denial reasons for loan modification rejections and grants borrowers 30 days to appeal denials with opportunity to provide evidence of servicer error

• Establishes liability for material violations including actual damages, treble damages up to $50,000 for intentional/reckless violations, and allows borrowers to seek injunctive relief to stop foreclosure sales before a deed is recorded

• Applies different standards to smaller servicers (foreclosing on 175 or fewer properties) and prohibits servicers from charging fees for loan modifications or foreclosure prevention alternatives