California Pushing For New Mortgage Laws

California Attorney General, Kamala Harris, has been actively involved in the foreclosure crisis resolution efforts since she took office 16 months ago. After several outspoken speeches and many aggressive attempts to obtain better mortgage debt help for California homeowners, Harris is now lobbying state lawmakers to consider a new bill package.

Policy Changes

The proposed law package includes 11 new bills that seek to change the mortgage industry and lending practices in California. Assembly Bill (AB) 1602 and Senate Bill (SB) 1470, extend the protections offered in the national mortgage settlement to all California homeowners. They would also require lenders prove their right to foreclose, as well as prohibit lenders from filing foreclosure notices when alternatives are being actively considered.

AB 2425 and SB1471 offer increased due process rights for borrowers, whereby lenders would be required to provide a contact point for any borrower that wishes to discuss foreclosure or debt solution options. They would also increase penalties for robo-signing and other unlawful foreclosure practices. Similarly, AB1950 would give prosecutors four years to pursue charges against lenders for foreclosure-related crimes. Other bills include giving renters more notification to vacate properties intended for foreclosure and cities the ability to fight against the negative effects of abandoned foreclosures.