California Assembly Bill 2424 adds a requirement to California Civil Code § 2932.2 for mortgagee, beneficiary or authorized agent to provide a disclosure notifying buyers of properties with four units or less that a third party such as a family member, HUD-certified housing counselor, or attorney may record a request to receive copies of any notice of default and notice of sale.
To comply with this new disclosure requirement, which is legally required on January 1, 2025, we have created Cx27952 California Third-Party Request for Notices Disclosure. This disclosure must be given before the mortgagor or trustor signs the mortgage or deed of trust. This document will be in closing packages for California. The default stacking order will put the document before the deed of trust or mortgage. In order to be compliant, any clients with a custom stacking order will need to ensure it appears before the mortgage or deed of trust.
These changes are available for testing on Stage & Stage 2 servers and will take effect on November 13, 2024. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
LEG-2466
DR-162331
Update:
Since Cal. Civ. Code § 2932.2 says that the disclosure must be provided to “the mortgagor or trustor”, we are changing the signature code on the document from borrower-specific to different signature code that will allow all parties to the security instrument to sign Cx27952. This change will be in effect immediately. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
DR-165613