California Civil Code § 2924.13 makes one thing clear:
If you manage your own loan — you’re a servicer.
Not because you’re licensed. Because you function as one.

As someone who’s been professionally servicing private money loans for decades,  and charging a nominal fee to do so properly,  I’m still shocked at how many lenders continue to self-service their own loans with no formal process, no backup, and now… possibly no protection against the new law.

This new law explicitly defines “mortgage servicer” to include anyone who:

• Collects payments
• Manages escrows
• Sends notices or statements
• Enforces the note

Yes — that means private money lenders, trust deed investors, and anyone else who’s been “handling it themselves” behind the scenes.

And now, before foreclosing on a second lien, they must:

• Certify under penalty of perjury that no servicing violations ever occurred, even across decades and multiple holders
• Mail compliance notices to borrowers
• Prove continuous written communication
• Be ready for lawsuits if even one required statement was missed

And if that certification is wrong? The foreclosure can be halted, reversed, or litigated.

👉 Bottom line:

If you’re self-servicing in California, you’re now fully exposed.

The era of casually holding notes “on the side” is over.

I’ve said it before, and I’ll say it again, proper servicing isn’t an afterthought. It’s compliance, continuity, and protection.

Need help? Reach out. This is what we do.