New California Law Will Stop ‘Abusive’ Home Lending
LOS ANGELES (CBS) — Gov. Jerry Brown signed a law Wednesday that he says will make mortgage companies play it straight with their customers.
The Homeowners Bill of Rights will prohibit dual track foreclosures, where banks appear to be working with homeowners to keep them in their homes on the one hand, while processing foreclosure proceedings on the others.
“Playing straight means that when you’re modifying a loan, you don’t behind their back start foreclosing and kick ’em out of the house,” Brown said.
The law will also provide protections for renters who are leasing homes that are subject to foreclosure and provide homeowners with a single point of contact at the bank for loan modifications.
Brown signed the legislation in Los Angeles.