No. The law is not retroactive. Advanced fees paid to an attorney prior to October 11, 2009 are not affected by SB 94.

On October 11, 2009, the following code provisions, referred to collectively as SB 94, became effective:

California Civil Code, section 2944.6(a) providing that any person who offers to negotiate, arrange or perform a mortgage loan modification or forbearance in exchange for a fee paid by the borrower, shall provide the borrower, prior to entering into a fee agreement, a separate statement advising the borrower of various points including the fact that it is not necessary to pay a third party to arrange for a modification or forbearance and that the United States Department of Housing and Urban Development provides a list of non-profit organizations that provide assistance to borrowers at no cost.

California Civil Code, section 2944.7(a)(1) providing that it shall be unlawful for any person who offers to negotiate, arrange or perform a mortgage loan modification or forbearance in exchange for a fee paid by the borrower, to claim, demand, charge, collect or receive any compensation until after the person has fully performed each and every service the person contracted to perform or represented that he or she would perform.

Section 2944.7(a)(2) prohibiting the taking of any wage assignment, lien or other security to secure the payment of compensation.

Section 2944.7(a)(3) prohibiting the taking of any power of attorney from the borrower for any purpose.

Section 2944.7(d) providing that the section applies only to mortgages and deeds of trust secured by residential real property containing four or fewer dwelling units.

California Business and Professions Code, section 6106.3, providing that a violation of Civil Code sections 2944.6 or 2944.7 by a member of the State Bar of California constitutes a cause for the imposition of discipline.