Source: http://certifiedforensicloanauditors.com/editor/07.15/even-a-consumer-is-entitled-to-due-process.html
Timestamp: 2019-04-25 18:04:21+00:00

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No residential mortgage loan and no extension of credit under an open end consumer credit plan secured by the principal dwelling of the *consumer may include terms which require arbitration or any other non-judicial procedure as the method for resolving any controversy or settling any claims arising out of the transaction.
Subject to paragraph (3), paragraph (1) shall not be construed as limiting the right of the consumer and the creditor or any assignee to agree to arbitration or any other nonjudicial procedure as the method for resolving any controversy at any time after a dispute or claim under the transaction arises.
No provision of any residential mortgage loan or of any extension of credit under an open end consumer credit plan secured by the principal dwelling of the consumer, and no other agreement between the consumer and the creditor relating to the residential mortgage loan or extension of credit referred to in paragraph (1), shall be applied or interpreted so as to bar a consumer from bringing an action in an appropriate district court of the United States, or any other court of competent jurisdiction, pursuant to section 1640 of this title or any other provision of law, for damages or other relief in connection with any alleged violation of this section, any other provision of this subchapter, or any other Federal law.
16 CFR 444.2 - Unfair credit practices.
(1) Constitutes or contains a cognovit or confession of judgment (for purposes other than executory process in the State of Louisiana), warrant of attorney, or other waiver of the right to notice and the opportunity to be heard in the event of suit or process thereon.
(2) Constitutes or contains an executory waiver or a limitation of exemption from attachment, execution, or other process on real or personal property held, owned by, or due to the consumer, unless the waiver applies *solely to property subject to a *security interest executed in connection with the obligation.
(note) the term “property subject to a security interest”, is by definition is “pledged property”, the creditor has actual and constructive possession, i.e. stocks or bonds pledged to secure an extension of credit to an affiliate.
The one action rule for real property Code of Civil Procedure section 726.
§ 726. Form of action; procedure Form of action; judgment.
There can be but one form of action for the recovery of any debt, or the enforcement of any right secured by mortgage upon real property, which action must be in accordance with the provisions of this chapter. In such action the *court may, by its judgment, direct the *sale of the encumbered property (or so much thereof as may be necessary), and the application of the proceeds of the sale to the payment of the costs of court, ….
An act to add a new section to be numbered 2953 to the Civil Code, relating to debts secured by mortgages, trust deeds or other hypothecation of real property.
2953. Any agreement exacted from a borrower as a condition to the making or renewing of any loan secured by a deed of trust, mortgage or other lien on real property whereby the borrower agrees to waive, any rights or privileges existing under sections 2924, 2924b, 2924c of the Civil Code or under sections 580a or *726 of the Code of Civil Procedure, and any agreement exacted from a borrower as a condition to the making of any such loan whereby the borrower in general terms agrees to waive any rights or privileges which may be conferred upon him by legislation thereafter enacted are hereby declared to be void and unenforceable.
1.	The debtor protections for the most part are non- waive able at the time of the loan. See Cornelison v. Kornbluth, 15 Cal. 3d 590, 125 Cal. Rptr. 557 (1975); Freedland v. Greco, 45 Cal. 2d 462, 289 P.2d 463 (1955); Salter v. Ulrich, 22 Cal. 2d 263, 138 P.2d 7 (1943); Russell v. Roberts, 39 Cal. App. 3d 390, 114 Cal. Rptr. 305 (1974); CAL. CIV. CODE §§ 2953, 2889 (West 1974). The only permissible election belongs to the debtor, who may choose to waive his protections by agreement made *after the loan or by failure to assert his protection as an affirmative defense. Id.; Walker v. Community Bank, 10 Cal. 3d 729, 518 P.2d 329, 111 Cal. Rptr. 897 (1974).

References: § 726
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