FINAL PUSH: One more vote for the California Homeowner Bill of Rights!
CRC is pleased to announce that the Special Legislative Conference Committee has passed the Homeowner Bill of Rights bill that would end the “dual track” foreclosure problem in California and allow homeowners to enforce their rights in court. The bill passed through the Committee this morning with a 4-2 vote. Many of CRC’s primary policy concerns have been incorporated into the bill language. We are excited about the possibility that strong dual track legislation will finally be passed in California! The bill now goes to the Assembly and Senate for a full floor vote.*
Please email and call your Assemblymember and Senator NOW to tell them to vote YES on the California Foreclosure Reduction Act—AB 278 (Eng, Feuer, Mitchell) & SB 900 (Leno, Corbett, DeSaulnier, Evans, Pavley, Steinberg).
This bill will:
- End “dual track” by requiring banks to consider loan modification applications before continuing with foreclosure. If a loan modification is approved and a borrower accepts it, the notice of default must be rescinded or the sale must be canceled without any further action by the servicer. If a loan modification is denied, servicers must send a letter to the borrower describing the reason for denial and letting the borrower know of her right to appeal that denial to the servicer.
- Allow a borrower to request a copy of the note, deed of trust or mortgage, or any assignment required to demonstrate servicer’s right to foreclose.
- Strengthen “due process” for homeowners by requiring a single point of contact at the bank and outlawing “robo-signing”. Servicers will be fined $7,500 per mortgage for repeated robo-signing violations.
- Provide homeowners with a “private right of action” that allows homeowners to sue servicers who do not abide by these rules. This will encourage servicers to follow the law, and when they do not, it will allow victimized homeowners to get their homes back where possible, or get some financial relief.
- Bring some sorely needed decency to the foreclosure process by requiring servicers who postpone foreclosure sales for more than 10 days to provide new notice to the homeowners about when the foreclosure sale will be rescheduled.
(*The bill’s language can no longer be changed, so it’s a straight up-or-down vote in both houses.)