Article 1. Mortgages in General - California Civil Code Section 2944.6

2944.6.  (a) Notwithstanding any other provision of law, any person
who negotiates, attempts to negotiate, arranges, attempts to arrange,
or otherwise offers to perform a mortgage loan modification or other
form of mortgage loan forbearance for a fee or other compensation
paid by the borrower, shall provide the following to the borrower, as
a separate statement, in not less than 14-point bold type, prior to
entering into any fee agreement with the borrower:
     It is not necessary to pay a third party to arrange for a loan
modification or other form of forbearance from your mortgage lender
or servicer. You may call your lender directly to ask for a change in
your loan terms. Nonprofit housing counseling agencies also offer
these and other forms of borrower assistance free of charge. A list
of nonprofit housing counseling agencies approved by the United
States Department of Housing and Urban Development (HUD) is available
from your local HUD office or by visiting

   (b) If loan modification or other mortgage loan forbearance
services are offered or negotiated in one of the languages set forth
in Section 1632, a translated copy of the statement in subdivision
(a) shall be provided to the borrower in that foreign language.
   (c) A violation of this section by a natural person is a public
offense punishable by a fine not exceeding ten thousand dollars
($10,000), by imprisonment in the county jail for a term not to
exceed one year, or by both that fine and imprisonment, or if by a
business entity, the violation is punishable by a fine not exceeding
fifty thousand dollars ($50,000). These penalties are cumulative to
any other remedies or penalties provided by law.
   (d) This section does not apply to a person, or an agent acting on
that person's behalf, offering loan modification or other loan
forbearance services for a loan owned or serviced by that person.
   (e) This section shall apply only to mortgages and deeds of trust
secured by residential real property containing four or fewer
dwelling units.
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Last modified: February 16, 2015