CFC Supports SB 1275 (Leno, Steinberg) – The Homeowners Bill of Rights
Bill Status: The bill passed Senate appropriations by a vote of 6 to 4 with 1 abstention on May 24th and the Senate Banking, Finance, and Insurance Committee by a vote of 7 to 2 with 3 abstentions on April 7th, 2010.
CFC Position: Support
SB 1275 enacts the Homeowner’s Bill of Rights. It requires that homeowners receive notice of their rights regarding their loans prior to foreclosure and remedies for those whose rights were violated under this act.
The new law would also require loan servicers to process any application for loan modification before starting the foreclosure process.
SB 1275 will mitigate the devastating impact of the foreclosure crisis on the Californian economy with fair and equitable measures for all parties involved. This bill will provide homeowners working to rehabilitate their finances the support they need to recover their mortgage during the current recession.
By making information on rights available, consumers are empowered to make the most informed decision possible, and are protected from potentially non-responsive banks and loan servicers.
For these reasons, we strongly support SB 1275.