The State Assembly Monday passed Senate Bill 1137 (Perata) to reform the home foreclosure process with a bipartisan 55-18 vote.
“Home foreclosures are raging across California – from San Diego to Shasta County. The crisis is real and it is the responsibility of the State Legislature to protect homeowners,” said Assembly Speaker Karen Bass (D-Los Angeles) who is a principal co-author of the bill with Senate President Pro Tem Don Perata (D-Oakland). “The passage of SB 1137 shows that states have the right and ability to regulate how lenders can do business.”
SB 1137 improves communication between lenders and borrowers and broadens the ability to modify mortgage terms.
Speaker Bass said, “I look forward to both houses continuing in their pursuit of good policy that addresses the needs of homeowners. California, along with New York and North Carolina, will continue to make strides in protecting consumers. We cannot continue to rely only on federal regulations, particularly for something as important as home mortgages.”