California to Mortgage Lenders: The Party’s Over!
From San Diego Free Press
California became the first state in the country yesterday to enact tough consumer protection legislation holding to a higher standard that will help financially troubled borrowers stay in their homes. The legislation, SB 900 and AB 278, will make California the first state to prohibit lenders from “dual tracking,” the practice of negotiating with clients to modify a mortgage while concurrently pursuing foreclosure, outlaw “robosigning”, allow state agencies and private citizens to sue financial companies if lenders willfully or recklessly violate the law, and simplify dealings between homeowners and banks by requiring a single customer representative for consumers to work with. The bill requires all lenders to abide by a number of provisions of the national mortgage settlement negotiated by state attorneys general earlier this year to rein in foreclosure abuses.
The Assembly approved the legislation on a 53-25 vote, and the Senate voted 25-13. From San Diego Free Press








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