Measures would protect Californians from some of the most egregious tactics of lending servicers.
by Brian Leubitz
Since Kamala Harris pushed for additional concessions in the mortgage fraud settlement, she's been pushing in the Legislature as well. The "Homeowner's Bill of Rights" would enshrine many of the substantive provisions of that settlement into California law.
The legislation would require large lenders to provide a single point of contact for homeowners who want to discuss loan modifications. It would prohibit lenders from foreclosing while the lenders consider homeowners' request for alternatives to foreclosure. And it would let California homeowners sue lenders to stop foreclosures or seek monetary damages if the lender violates state law.
The protections would benefit all California homeowners, not just those whose mortgages are with the five banks that signed the national settlement in February. And many of the restrictions would become permanent, while those in the nationwide agreement will end after five years.
Attorney General Kamala Harris said the compromise legislation negotiated with lawmakers "is going to bring transparency and fairness to California homeowners in a way they've never had before."(HuffPo)
This legislation most assuredly doesn't go far enough. There have been compromises all along the way, but this is legislation that will benefit many, many Californians. It would be a big step forward.
The Courage Campaign is following the latest action on their twitter account. KQED's Forum aired a show on the legislation this morning, that is embedded above or available here.