A California trustee receives a request to substitute a new trustee under an existing deed of trust. Under California law, who has the authority to substitute the trustee?
Correct Answer
B) The beneficiary (lender) has the exclusive right to substitute the trustee
Under California Civil Code §2934a, the beneficiary (or their authorized agent) has the right to substitute the trustee. The substitution must be executed, acknowledged, and recorded. The borrower's consent is not required.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Predatory lending refers to unfair, deceptive, or abusive lending practices that impose unjustified terms on borrowers, often targeting vulnerable populations. It includes practices like excessive fees, inflated appraisals, and unnecessary refinancing.
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
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