Last week, the California State Legislature passed a Conference Report that was a key element of the California Attorney General’s package of bills making up a “Homeowners Bill of Rights.”

 The legislation is intended to codify the national negotiated settlement between the state’s Attorney General and major banks. The California Association of REALTORS® (C.A.R.) had opposed the legislation because it felt, while well-meaning, the legislation would encourage the filing of frivolous lawsuits that would delay the foreclosure process and further discourage lending. 

While C.A.R. is disappointed in the final outcome, the bill passed by lawmakers is a much improved version of the package of bills initially sponsored by the Attorney General. The original bill would have halted all foreclosures, drying up both REO inventory and even short sales.
 
“The good news is what has passed is an improved version of the package of bills initially sponsored by the Attorney General. During Legislative Day in May, REALTORS® from across the state traveled to Sacramento and spoke with their legislators against these complicated and harmful provisions. The Conference Committee ultimately did not include them in the final report,” said Suzanne Yost, president of the Silicon Valley Association of REALTORS®.

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