This title is known, and may be cited, as the “COVID-19 Small Landlord and Homeowner Relief Act of 2020.”
Covid-19 Small Landlord and Homeowner Relief ActTitle and Definitions
Section § 3273.01
This part of the law is officially called the “COVID-19 Small Landlord and Homeowner Relief Act of 2020.” It primarily aims to provide some relief to small landlords and homeowners affected by the COVID-19 pandemic.
COVID-19 Small landlords Homeowner relief
Section § 3273.1
This law defines terms related to mortgages and borrowers. It explains who qualifies as a 'borrower' for purposes of mortgage laws, including natural persons who own a property, entities with properties occupied by residential tenants, and people with power of attorney for these owners. However, it excludes individuals who've given up their property and certain entities like corporations and real estate trusts unless they hold affordable housing. It also defines a 'mortgage servicer' as someone who handles loans daily, except trustees under a power of sale.
For purposes of this title:
(a)Copy CA Civil Law Code § 3273.1(a)
(1)Copy CA Civil Law Code § 3273.1(a)(1) “Borrower” means any of the following:
(A)CA Civil Law Code § 3273.1(a)(1)(A) A natural person who is a mortgagor or trustor or a confirmed successor in interest, as defined in Section 1024.31 of Title 12 of the Code of Federal Regulations.
(B)CA Civil Law Code § 3273.1(a)(1)(B) An entity other than a natural person only if the secured property contains no more than four dwelling units and is currently occupied by one or more residential tenants.
(2)CA Civil Law Code § 3273.1(a)(2) “Borrower” shall not include an individual who has surrendered the secured property as evidenced by either a letter confirming the surrender or delivery of
the keys to the property to the mortgagee, trustee, beneficiary, or authorized agent.
(3)CA Civil Law Code § 3273.1(a)(3) Unless the property securing the mortgage contains one or more deed-restricted affordable housing units or one or more affordable housing units subject to a regulatory restriction limiting rental rates that is contained in an agreement with a government agency, the following mortgagors shall not be considered a “borrower”:
(A)CA Civil Law Code § 3273.1(a)(3)(A) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.
(B)CA Civil Law Code § 3273.1(a)(3)(B) A corporation.
(C)CA Civil Law Code § 3273.1(a)(3)(C) A limited liability company in which at least one member is a corporation.
(4)CA Civil Law Code § 3273.1(a)(4) “Borrower” shall also mean a person who holds a power of attorney for a borrower
described in paragraph (1).
(b)CA Civil Law Code § 3273.1(b) “Effective time period” means the time period between the operational date of this title and December 1, 2021.
(c)Copy CA Civil Law Code § 3273.1(c)
(1)Copy CA Civil Law Code § 3273.1(c)(1) “Mortgage servicer” or “lienholder” means a person or entity who directly services a loan or who is responsible for interacting with the borrower, managing the loan account on a daily basis, including collecting and crediting periodic loan payments, managing any escrow account, or enforcing the note and security instrument, either as the current owner of the promissory note or as the current owner’s authorized agent.
(2)CA Civil Law Code § 3273.1(c)(2) “Mortgage servicer” or
“lienholder” also means a subservicing agent to a master servicer by contract.
(3)CA Civil Law Code § 3273.1(c)(3) “Mortgage servicer” shall not include a trustee, or a trustee’s authorized agent, acting under a power of sale pursuant to a deed of trust.
borrower definition natural person mortgagor confirmed successor in interest
Section § 3273.2
This law applies to homes used as collateral for mortgages or deeds of trust, specifically those with four or fewer living units, including individual condominiums or cooperative units, that existed when this law started. It affects various financial and business institutions, including federally or state-chartered banks and licensed professionals under specific financial and business regulations.
(a)CA Civil Law Code § 3273.2(a) The provisions of this title apply to a mortgage or deed of trust that is secured by residential property containing no more than four dwelling units, including individual units of condominiums or cooperatives, and that was outstanding as of the enactment date of this title.
(b)CA Civil Law Code § 3273.2(b) The provisions of this title shall apply to a depository institution chartered under federal or state law, a person covered by the licensing requirements of Division 9 (commencing with Section 22000) or Division 20 (commencing with Section 50000) of the Financial Code, or a person licensed pursuant to Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code.
mortgages deeds of trust residential property
