California lawmakers approved legislation today that would lock into law much of the national mortgage settlement negotiated this year with the nation's top five banks.
The Homeowner Bill of Rights bars foreclosures while loan modifications are pending and provides homeowners a single point of contact with lenders.
It also allows homeowners to sue banks, with certain restrictions, if wrongly foreclosed upon.
The banking industry and Republican lawmakers say the legislation will delay foreclosures and harm the real estate market.
But Democratic Assemblymember Mike Eng says the legislation sets restrictions and deadlines that currently aren’t required. “Members without this bill it’s the wild wild west of no definition, not time for actions, no deadlines, anybody can do whatever they want whenever they want however they can”.
The bill must still be signed by Governor Jerry Brown.
If he does, the law would take effect in January.
