California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16.5 - California Foreclosure Prevention Act › Subarticle 3 - Application Form › Section 2850.9

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The exemption application shall be in the following
					 form:
STATE OF CALIFORNIA
DEPARTMENTS OF CORPORATIONS, FINANCIAL INSTITUTIONS,
					 AND REAL ESTATE
APPLICATION FOR ORDER OF EXEMPTION FROM CIVIL CODE
					 SECTION
					 2923.52(a)
					 CALIFORNIA FORECLOSURE PREVENTION ACT
____________________________________________________________________________________
The purpose of this application is to apply for an order of
					 exemption from Section
					 2923.52 of the
					 California Foreclosure Prevention Act (California Civil Code Section
					 2923.52 et
					 seq.). The approval of this application by the Commissioner shall provide the
					 applicant with an exemption from the additional 90-day delay period before a
					 servicer may file the Notice of Sale when foreclosing on real property, as
					 provided in Civil Code Section
					 2923.52.
Upon filing this application, the applicant will be issued
					 a temporary order of exemption, effective from the latter of the date of
					 receipt of the application or the operative date of Civil Code Section
					 2923.52. The temporary order of
					 exemption remains in effect until a final order of exemption is issued or for
					 thirty (30) days after the application is denied.
When completing the application, please note the
					 following:
* The name of the applicant must be the applicant's legal
					 name.
* The applicant's regulatory license number must be
					 provided.
* If the applicant holds a license with more than one
					 regulatory agency, under the same legal name for the same entity, list the
					 license numbers for each regulatory agency from which an order of exemption is
					 requested.
* The applicant must provide the name, title, address,
					 email address, and telephone number of the contact person to whom questions
					 regarding the filing of this application should be directed.
* The application must be signed by the applicant if a sole
					 proprietor, by a general partner if a partnership, or by an authorized officer
					 if a corporation or other entity.
The applicant's loan modification program must meet the
					 following requirements:
* The program is designed to keep borrowers in their homes
					 when the anticipated recovery under the loan modification or workout plan
					 exceeds the anticipated recovery through foreclosure on a net present value
					 basis.
* The program targets a ratio of the borrower's housing
					 related debt to gross income of 38% or less, on an aggregate basis in the
					 program.
* The program includes a combination of the
					 following:
1. An interest rate
				  reduction, as needed, for at least five years.
2. An extension of the amortization period
				  for the loan term, to no more than forty years from the original date of the
				  loan.
3. A deferral of some portion
				  of the unpaid principal balance until the maturity of the loan.
4. A reduction of principal.
5. Compliance with a federally mandated loan
				  modification program.
6. Any other
				  factor the Commissioner determines is appropriate, as identified and described
				  in this application and approved by the Commissioner (see
				  10 CCR
				  §
											2923.5(e)(1)(F)).
* In determining a loan modification solution for the
					 borrower, the program seeks to achieve long-term sustainability for the
					 borrower.
The appropriate page and paragraph from the loan
					 modification plan must be referenced on the application to show the program's
					 compliance with the above requirements and expectations.
NOTE: A servicer is not required to violate a contractual
					 agreement for the investor-owned loans or provide a modification to a borrower
					 who is not willing or able to pay under the modification.
In addition to other required documentation, an applicant
					 must submit with this application the declaration that meets the disclosure
					 requirements of Civil Code Section
					 2923.54 that
					 the applicant will include, or instruct the trustee to include, in the Notice
					 of Sale. The declarations submitted with the application must state whether the
					 servicer has obtained an order of exemption from the Commissioner that is
					 current and valid on the date the Notice of Sale is recorded, and whether the
					 additional 90-day period is applicable.
The application shall be filed with the appropriate
					 agencies as follows:
Department of Corporations
* Licensed residential mortgage lenders and
					 servicers
* Licensed finance lenders and brokers servicing mortgage
					 loans
* Any other entities servicing mortgage loans that are not
					 required to file the application with the Department of Financial Institutions
					 or the Department of Real Estate
Department of Financial Institutions
* Commercial and industrial banks
* Savings associations
* Credit unions
Organized in this state servicing mortgage loans (for
					 purposes of this regulation, the phrase "organized in this state" means
					 institutions headquartered in this state)
Department of Real Estate
* Licensed real estate brokers servicing mortgage
					 loans
An application will not be rejected by a department based
					 upon an applicant's inadvertent failure to file with the designated
					 department.
APPLICATION FOR ORDER OF EXEMPTION
					 UNDER
SECTION
					 2923.53 OF
					 THE
CALIFORNIA FORECLOSURE PREVENTION ACT
(CIVIL CODE SECTION
					 2923.52 ET SEQ.)
1. Legal name of applicant:
___________________________
Fictitious business name (FBN):
___________________________
2. License numbers:
DOC Primary License Number:____________________
DFI Primary License Number:_______________________
DRE Primary License Number:____________________
Other entity servicing mortgage loans
___________________________
Name of Primary Regulator:
___________________________
License/Identification Number, if applicable:
(Specify every license held by applicant that this
					 application applies to.)
[] Check this box if an application has also been filed
					 with another department.
3.
				  Contact Person/Title: ___________________________
4. Telephone Number:
				  ____________________________
5.
				  Email Address: _______________________________
(Confirmation of Temporary Order will be provided to this
					 e-mail address.)
6. Mailing
				  Address: ___________________________
7. Date comprehensive loan modification
				  program was implemented:
___________________________
					 ___________________________
8. Link to applicant's website describing its
				  loan modification program: ___________________
9. Are you a commercial or industrial bank,
				  savings association or credit union that has adopted a comprehensive loan
				  modification program in substantial conformance with the Home Affordable
				  Modification Program Guidelines issued by the Department of Treasury on March
				  4, 2009?
Yes ___ No ___.
Indicate any differences from the Home Affordable
					 Modification Program:
__________________________________________________
If your answer is "Yes," please skip the remaining
					 questions, provide only Exhibits 2 and 3, and complete the declaration section
					 of this application. If your answer is "No," please continue to complete the
					 remainder of this application.
10. Are you currently participating in a
				  federally sponsored loan modification program, or other federal loan
				  modification program?
Yes___ No___
If yes, please indicate the program below:
___ Home Affordable Modification Program
___ Home Affordable Refinance Program
___ Hope for Homeowners
___ Other. Please specify:
					 __________________________________________
A.
					 Have you entered into a contract or agreement with the federal agency
					 responsible for the program?
Yes___ No ___
If your answer is "yes," please provide a copy of the
						agreement(s). If you have entered into a Servicer Participation Agreement with
						a financial agent of the United States for the Home Affordable Modification
						Program, skip the remaining questions, provide only Exhibit 2, and complete the
						declaration section of this application.
B. Does the federal loan modification
					 program(s) you are participating in cover all types of residential mortgage
					 loans you service? (i.e. Fannie Mae, Freddie Mac, FHA, VA, etc.)
Yes___ No___
If no, please explain and include how modifications for
						the loans not covered by the federal program are performed.
___________________________
___________________________
___________________________
The following exhibits must be submitted with this
						application:
Exhibit (1): A description of your Comprehensive Loan
						Modification Program(s). The program must, at a minimum, include the
						requirements of Civil Code Section
						2923.53. Please respond to the
						following questions and reference below the page and/or paragraph numbers with
						your submitted program. If you have more than one comprehensive loan
						modification program, please identify the program name and provide the
						requested information for each program:
Program 1 Name/Identity:
						___________________________
Program 2 Name/Identity:
						___________________________
Program 3 Name/Identity:
						___________________________
* Does the program contain a provision that the
						anticipated recovery under the loan modification or workout plan exceeds the
						anticipated recovery through foreclosure on a net present value basis? (Net
						present value (NPV) has same meaning as used in the federal Affordable Home
						Modification Program.)
Program 1
Yes___No___
If yes, indicate the location of the provision. Page___
						Paragraph___ Program 2
Yes___No___
If yes, indicate the location of the provision. Page___
						Paragraph___
Program 3
Yes___No___
If yes, indicate the location of the provision. Page___
						Paragraph___
* Does the program contain a provision that it targets a
						ratio of the borrower's housing related debt to gross income of 38% or less, on
						an aggregate basis in the program?
Program 1
Yes___No___
If yes, indicate the location of the provision. Page___
						Paragraph___
Program 2
Yes___No___
If yes, indicate the location of the provision. Page___
						Paragraph___ Program 3
Yes___No___
If yes, indicate the location of the provision. Page___
						Paragraph___
* The program includes the consideration of a combination
						of the following features:
A. Does the
					 program include an interest rate reduction, as needed, for at least five years?
Program 1
Yes___No___
If yes, indicate the location of the provision. Page___
						Paragraph___
Program 2
Yes___No___
If yes, indicate the location of the provision. Page___
						Paragraph___
Program 3
Yes___No___
If yes, indicate the location of the provision. Page___
						Paragraph___
B. Does the
					 program include an extension of the amortization period for the loan term, to
					 no more than forty years from the original date of the loan?
Program 1
Yes___No___
If yes, indicate the location of the provision. Page___
						Paragraph___
Program 2
Yes___No___
If yes, indicate the location of the provision. Page___
						Paragraph___
Program 3
Yes___No___
If yes, indicate the location of the provision. Page___
						Paragraph___
C. Does the
					 program include a deferral of some portion of the unpaid principal balance
					 until the maturity of the loan?
Program 1
Yes___No___
If yes, indicate the location of the provision. Page___
						Paragraph____
Program 2
Yes___No___
If yes, indicate the location of the provision. Page___
						Paragraph___
Program 3
Yes___No___
If yes, indicate the location of the provision. Page___
						Paragraph___
D. Does the
					 program include a reduction of principal?
Program 1
Yes___No___
If yes, indicate the location of the provision. Page___
						Paragraph___
Program 2
Yes___No___
If yes, indicate the location of the provision. Page___
						Paragraph___
Program 3
Yes___No___
If yes, indicate the location of the provision. Page___
						Paragraph___
E. Does the
					 program provide for loan modifications that comply with any federal loan
					 modification program?
Program 1
Yes___No___
If yes, indicate the location of the provision. Page___
						Paragraph___
Program 2
Yes___No___
If yes, indicate the location of the provision. Page___
						Paragraph___ Program 3
Yes___No___
If yes, indicate the location of the provision. Page___
						Paragraph___
F. Does the
					 program include other factors that have resulted in an increased number of loan
					 modifications? Please provide a description and an explanation of how the other
					 factors have reduced foreclosures on Exhibit 5.
* In determining a loan modification solution for the
						borrower, does the servicer seek to reduce monthly payments for at least 5
						years?
Program 1
Yes___No___
If yes, indicate the location of the provision. Page___
						Paragraph___
Program 2
Yes___No___
If yes, indicate the location of the provision. Page___
						Paragraph___
Program 3
Yes___No___
If yes, indicate the location of the provision. Page___
						Paragraph___
Exhibit (2): A NOTICE OF SALE form in compliance with
						Civil Code Section
						2923.54, or a
						copy of the declaration, or forms of declarations, in compliance with Civil
						Code Section
						2923.54 that
						the applicant will instruct its trustee to include in its Notice of
						Sale.
Exhibit (3). A copy of the notice that will be sent to
						borrowers informing them of the program.
Exhibit (4): Complete and submit the most recent 3 months
						of available data on the attached spreadsheet for mortgages secured by
						residential property located in California, which includes the following
						statistical information:
Servicing portfolio volume, including number of units and
						unpaid principal balance
Delinquency status of portfolio
Loss mitigation data including total number of
						modifications made
Loan modification features used
Housing related debt ratios (if available)
Subsequent defaults on loan modifications
Reasons for denial of loan modifications
Exhibit (5): Explanations for items included in the
						application.
(a) Provide the
					 differences between applicant's NPV model and the Department of the Treasury's
					 Net Present Value Model Parameters, and justification for the differences. For
					 example, the use of alternative discount rates, the use of short sale rather
					 than foreclosure, and other differences.
(b) If the program is unable to achieve a
					 debt-to-income ratio of 38% or less, on an aggregate basis, provide an
					 explanation of why the program is unable to achieve this target.
(c) Provide a description of other
					 modification features to be considered by the Commissioner, if any.
NOTE: Exhibits 1, 4 and 5 are considered
						Confidential in nature and therefore will not be made available for public
						inspection on an individual basis.
Wherefore, applicant hereby requests that the
						Commissioner grant an order of exemption from Civil Code Section
						2923.52, as
						provided in Section
						2923.53 of the California
						Foreclosure Prevention Act (Civil Code Section
						2923.52 et
						seq.) pursuant to the criteria set forth in that act and the rules adopted
						thereunder.
I declare under penalty of perjury that I have read the
						forgoing application, including all exhibits attached thereto, or filed
						therewith, and know the contents thereof, and that the statements are true and
						correct. I further declare that the applicant has implemented the comprehensive
						loan modification program set forth in this application, and that I have
						authority to make these representations on behalf of the applicant.
___________________________
Applicant
___________________________
Signature of Declarant
___________________________
Typed Name and Title of Declarant
Executed at: ______________________________(City, County,
						and State)
Date:______________________________