Bill to stem tide of foreclosures in California fails
August 31, 2010
Homeowners Avoid Foreclosure (SB 1275)
SACRAMENTO, CA — The California State Assembly failed to pass SB 1275 (Leno/Steinberg), a bill which would have prevented unnecessary foreclosures in California. The legislation would have required banks and loan servicers to determine whether a homeowner who applies for a loan modification qualifies for one before beginning the foreclosure process.
“It’s incredibly disappointing that many Assembly members whose districts have been hit hard by foreclosures opposed this legislation or didn’t even bother to vote on it,” said Norma Garcia, Senior Staff Attorney with Consumers Union, the nonprofit publisher of Consumer Reports. “These lawmakers owe it to their constituents to do something constructive but instead turned their backs on a solution their communities sorely need. SB 1275 was a workable solution that was extinguished by the very lending industry that has failed to provide qualified homeowners with the loan modifications they need.”
SB 1275 was strongly supported by Consumers Union, the Center for Responsible Lending, the California Reinvestment Coalition and nearly 70 other California organizations that care deeply about keeping homeowners who qualify for loan modifications in their homes and paying their mortgages. The legislation aimed to address some of the problems that have undermined the federal Home Affordable Mortgage Program (HAMP).
Michael McCauley or Norma Garcia – 415-431-6747