The California Association of REALTORS® reported today that the California Legislature passed a Conference Report that was a key element of the Attorney General’s package of bills making up a so-called “Homeowners Bill of Rights.” The legislation is intended to codify the national negotiated settlement between the state’s Attorney General and major banks. C.A.R. has been opposing this well-intentioned legislation because it will encourage the filing of lawsuits intended for delay, and further discourage lending.
While C.A.R. is disappointed in the final outcome, the good news is that what has passed is a much improved version of the package of bills initially sponsored by the Attorney General, which would have originally halted ALL foreclosures, drying up both REO inventory and even short sales. During C.A.R.’s Legislative Day in Sacramento on May 2, REALTORS® successfully lobbied their legislators against these dangerous provisions and the Conference Committee ultimately didn’t include them in the Conference Report.
C.A.R. will continue to fight for the thoughtful, balanced reform of the foreclosure process. For example, C.A.R. is sponsoring AB 1745 (Torres) which prohibits “dual tracking” to prevent lenders from selling a property at a foreclosure sale if a short sale has already been approved. C.A.R. has also worked cooperatively with the Attorney General on several of the bills in her “bill of rights.”
