January 23, 2013
TIPS BULLETIN #13-07
To:
Subject:
All Credit Unions
New Foreign Language Translation Requirement for California NODs
and NOSs
The material in this publication is provided for educational and informational purposes only, and does not constitute legal or financial advice. Use of any
material or information in this publication should never be a substitute for seeking the advice of an attorney or a certified public accountant.
Effective Date: April 1, 2013, or 90 days following the Department of Corporation’s (DOC) issuance of
summary translations, whichever occurs later.
Background
Under existing California Civil Code Section 1632, certain consumer contracts and notices must be
translated into Spanish, Chinese, Tagalog, Korean, and Vietnamese. The California State Legislature
enacted AB 1599 , which now requires the summarized notice of default (NOD) and the notice of sale
(NOS) for California residential 1-4 real property in five foreign languages.
The DOC is responsible for producing the translations and making them available without charge on its
website. Any mortgagee, trustee, beneficiary, or credit union that provides the DOC’s translations is
deemed to be in compliance with this requirement.
What Credit Unions need to do?
This bill requires credit unions to provide the borrower with a copy of a recorded Notice of Default or
recorded Notice of Sale that contains a summary of the respective notice that is translated into Spanish,
Chinese, Tagalog, Vietnamese, and Korean.
The translated summaries must be attached to the borrower’s copy of the NOD or NOS. The summaries
themselves are not required to be recorded or published.
A failure to provide these summaries has the same effect as if the NOD or NOS, as applicable, were
incomplete or not provided. These requirements will become operative on April 1, 2013, or 90 days
following the DOC’s issuance of summary translations, whichever occurs later.
January 23, 2013
This is the text of the required NOD and NOS summaries that the DOC is required to translate and
which the Servicer is required to provide:
Additional Links
AB 1599
Summaries
Questions
If you have any questions regarding this information, please contact the Research and Information’s tollfree hotline at 877.243.5728.
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