Home > Avid Law Center, Foreclosure, Loan Restructuring > The California Homeowners Bill of Rights

The California Homeowners Bill of Rights

California Attorney General Kamala Harris has been working since earlier this year on a package of bills to help protect homeowners from foreclosure and wrongful foreclosure practices by banks.

The so-called California Homeowners Bill of Rights was to be put to vote by the California Assembly’s Senate Banking and Finance Committee on Monday. However, Chairman Mike Eng (D-Monterey Park) of the Assembly Banking and Finance Committee asked that debate be postponed for a week in an effort to amend the bills so a compromise could be reached during negotiations with consumer groups and mortgage bankers.

In a press release issued by the Office of the Attorney General, the provisions of the bills were outlined and were aimed at making sure that homeowners are not put on a so-called dual-track process that allows banks to continue a foreclosure process at the same time they are negotiating possible loan modifications.

According to the Huffington Post,

“Other provisions in the bundle require banks to provide homeowners with a single point of contact during the loan modification process and levy a $25 fee on banks every time they register a default. Proceeds from the default fee would then go into a pool of money funding mortgage fraud investigations.”

While some of the provisions outlined in the proposed Bill of Rights overlap with the national mortgage settlement, the settlement expires in three years and Harris wants the rules to extend into perpetuity.

Harris has support from many political leaders on the proposed Bill of Rights, including San Francisco Mayor Ed Lee, as well as dozens of consumer, fair-lending and economic justice organizations, but faces opposition by mortgage bankers, bankers, credit unions and the financial industry.

Advertisements
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s