b'AB 1079 continued from page 11The Bill amends Civil Code section 2929.3 tosubdivision (a) of Section 27321.5 ofabout particular loans and properties in your provide with respect to residential properties2:the Government Code, or, if none, toportfolio thatmay be impacted by the Bill, The maximum civil fine authorized by thisthe return address provided on theplease reach out to Michelle Mierzwa at section for each day that the owner fails todeed or other instrument. mmierzwa@wrightlegal.net or Robert Finlay maintain the property, commencing on the(3) The governmental entity shall provide aat rfinlay@wrightlegal.net.day following the expiration of the periodperiod of not less than the time set forth to remedy the violation established by thein clauses (i) and (ii) of subparagraph (B) governmental entity, is as follows: of paragraph (2) to remedy the violationMichelle A. Mierzwa is a Partner in Wright, (A)Up to a maximum of two thousandprior to imposing a civil fine and shallFinlay & Zaks Compliance Division, providing dollars ($2,000) per day for the firstallow for a hearing and opportunity tostate and federal compliance and regulatory 30 days. contest any fine imposed. In determiningcounsel in the Western States.In 22 years the amount of the fine, the governmentalof practice, she has resolved litigation (B)Up to a maximum of five thousandentity shall take into consideration anythrough jury and bench trials and appellate dollars ($5,000) per day thereafter.timely and good faith efforts by the legalpractice, created a legal department for one [Emphasis added]. owner to remedy the violation. of the largest foreclosure trustees in the West, coordinated compliance audits, and The Bill provides with respect to the noticeThus, the Bill substantially increases themanaged the California branch of a national periods prior to imposition of fines:potential fines for a lenders failure to maintainlaw firm.(2) If the governmental entity chooses toproperty acquired through foreclosure by impose a fine pursuant to this section,increasing the maximum daily fines for theEndnotesit shall give the legal owner, prior to thefirst thirty-day period following the remedy1In addition, the rights of junior lienholders imposition of the fine, a notice containingperiod from $1,000.00to$2,000.00andbyunder Civil Code sections 2899 and 3433 may the following information: increasingthemaximumdailyfinesafterimpact the requirement to sell real property (A) Notice of the alleged violation,thethirtyday periodfrom $1,000.00tosecurity parcels separately.including a detailed description of$5,000.00. In sum, the Bill provides additional2While the post-sale bid process in Civil Code the conditions that gave rise to theincentives (if any were actually necessary oversection 2924m is limited to one-to four-unit the previously-existing fines of $1,000.00 perresidential properties, the post-foreclosure fine allegation. day!) for lenders who obtain title to propertyprovisions in Civil Code section 2929.3 relate (B) Notice of the entitys intent to assesspost-foreclosure to ensure that the propertyto residential property of any size, not limited to one-to four-units.Civil Code section 2929.3: a civil fine if the legal owner does notis properly maintained during the period it(a) (1) A legal owner shall maintain vacant do both of the following: is marketed for resale. residential property purchased by that owner at a foreclosure sale once that sale is deemed final (i)Within a period determined byIn summary, the Bill contains several newor acquired by that owner through foreclosure the entity, consisting of not lessprovisions that substantially impact lendersunder a mortgage or deed of trustWhile than 14 business days followingduring and after the traditional non-judicialthis section applies to all sizes of residential the date of the notice, commenceproperties, it does not apply to commercial action to remedy the violation andforeclosure process. For additional questionsproperties.notify the entity of that action. This time period shall be extended by an additional 10 business days if requested by the legal owner in order to clarify with the entity the actions necessary to remedy the violation.(ii) Complete the action described in clause (i) within a period of no less than 16 business days following the end of the period set forth in clause (i).(C) The notice required under this paragraph shall be mailed to the address provided in the deed or other instrument as specified in Page 12Winter 2020/2021Points of Interest'