|Foreclosure Sign, Mortgage Crisis (Photo credit: Wikipedia)|
I have already received contact from a representative of the banking industry who is not too happy with this. Why, was I aware that the California Bankers Association and the Cal Chamber of Commerce opposed this package of legislation to protect homeowners?
Really. Is this because this package of legislation goes beyond the temporary homeowner protections outlined in the National Mortgage Settlement -- which applied only to the top 5 banks? This package of bills would be applied to all lenders who would have to stop practices such as foreclosing on homeowners as they try to negotiate a loan modification and mandate that banks designate a single person to work with troubled borrowers. The California Attorney General's bill package would ban some of the worst practices that contributed to the housing crisis and write the terms of the national agreement into state law and apply them to every lender.
The financial-industry and business trade groups have opposed the bills, arguing that while the national mortgage settlement’s terms are temporary and apply to only five banks, the bills’ changes would be permanent and universal. In fact, the proposed California Bill of Rights provides longer term protection for homeowners where the national mortgage settlement expires.
So come to City Council on Tuesday, May 8 at 5pm and let the City Council which side they should be on for this issue.