(a) If a mortgage servicer denies a forbearance request made during the effective time period, the mortgage servicer shall provide written notice to the borrower that sets forth the specific reason or reasons that forbearance was not provided, if both of the following conditions are met:
(1) The borrower was current on payment as of February 1, 2020.
(2) The borrower is experiencing a financial hardship that prevents the borrower from making timely payments on the mortgage obligation due, directly or indirectly, to the COVID-19 emergency.
(b) If the written notice in subdivision (a) cites any defect in the borrower’s request, including an incomplete application or missing information, that is curable, the mortgage servicer shall do all of the following:
(1) Specifically identify any curable defect in the written notice.
(2) Provide 21 days from the mailing date of the written notice for the borrower to cure any identified defect.
(3) Accept receipt of the borrower’s revised request for forbearance before the aforementioned 21-day period lapses.
(4) Respond to the borrower’s revised request within five business days of receipt of the revised request.
(c) If a mortgage servicer denies a forbearance request, the declaration required by subdivision (b) of Section 2923.5 shall include the written notice together with a statement as to whether forbearance was or was not subsequently provided.
(d) A mortgage servicer, mortgagee, or beneficiary of the deed of trust, or an authorized agent thereof, who, with respect to a borrower of a federally backed mortgage, complies with the relevant provisions regarding forbearance in Section 4022 of the federal Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) (Public Law 116-136), including any amendments or revisions to those provisions, shall be deemed to be in compliance with this section. A mortgage servicer of a nonfederally backed mortgage that provides forbearance that is consistent with the requirements of the CARES Act for federally backed mortgages shall be deemed to be in compliance with this section.
(Added by Stats. 2020, Ch. 37, Sec. 13. (AB 3088) Effective August 31, 2020.)