Current law (until January 1, 2013) prohibits any person who negotiates, attempts to negotiate, arranges, attempts to arrange, or otherwise offers to perform residential mortgage loan modifications for mortgages and deeds of trust secured by real property containing four or fewer dwelling units, for a fee paid by the borrower, from demanding or receiving any pre-performance compensation, requiring collateral to secure payment, or taking a power of attorney from the borrower.  Existing law makes the violation of those provisions a crime and, with respect to an attorney, cause for imposition of discipline.  This bill extends the operation of those provisions until January 1, 2017.

Enacted September 2012. Link to bill: