Compliance Bulletin

Anti-Deficiency Protection Extended in California
November 12, 2012

A new bill, SB 1069, extends California’s anti-deficiency protection that is currently afforded to purchase money mortgages to any loan, refinance or other credit transaction used to refinance a purchase money loan, or subsequent refinances of a purchase money loan. 

The protections do not apply to new advances of principal. The bill is similar to one that was passed two years ago but vetoed by then Governor Arnold Schwarzenegger because it applied retroactively. 

SB 1069 only applies to credit transactions on or after January 1, 2013. 

See the Regulatory Compliance Bulletin here.