Why You Will Never Accuse Me Of Being A Politician!
If you want to know why I will never be a politician, read the article written by Robert Selna of the San Francisco Chronicle. A bill that was introduced to the California state legislature is in danger of not passing. The bill is designed to force lenders to fully consider a loan modification prior to starting foreclosure proceedings. Makes sense to me…….see if there’s anything you can do before kicking a family to the curb.
Why is this bill in danger of failing? Because the politicians have succumbed to the lobbying efforts of the banking industry. Bankers hate to be told what to do especially when it may cost them a few sheckles. They are more interested in sucking up our governments handouts versus trying to help the citizens of this once great country.
California foreclosure bill is losing steam
Robert Selna, Chronicle Staff Writer
A state legislative effort to save homeowners from foreclosure that once seemed to enjoy broad support is close to failing in the wake of an intense banking industry lobbying effort in Sacramento.
SB1275 would require lenders to provide homeowners with a fully considered decision on a loan modification prior to starting foreclosure.
The bill addresses what some say has become a far too common phenomenon for homeowners who are delinquent on their mortgages: While negotiating a loan modification, their lender forecloses. The proposed rules would allow the homeowner to sue if that occurs.
The federal government imposed similar rules on June 1 for banks participating in its main foreclosure reduction plan, but did not provide for legal action and uses no formal enforcement mechanism, according to SB1275’s sponsors.
The banking industry has opposed the state bill, arguing that lawsuits could be brought against lenders for technical violations and could delay the foreclosure process even if owners were ineligible for a modification. Banking representatives also have said that federal rules have evolved and could change again, potentially making SB1275 outdated and creating a conflict.
The bill’s author, state Sen. Mark Leno, D-San Francisco, said his legislation was born of the belief that lenders will continue to mistreat borrowers and handle foreclosures incompetently unless they are forced to change.
“Banks are not being held accountable,” Leno said in an interview Thursday. “The result has been devastating to homeowners and neighborhoods, and cities and counties, which have lost tax revenue. … The banks caused this entire mess; they brought the world down.”
Representatives from the California Bankers Association were not available Thursday. In June, a spokeswoman told The Chronicle that the association was “extremely opposed to any sort of private right of action.”
The state Senate passed SB1275 on June 3 and all three Assembly committees that reviewed the bill also approved it. But when it surfaced for a full Assembly vote on Tuesday, it did not get enough votes, losing 38-27, with 14 Democrats abstaining and some voting no, according to Leno.
The Assembly granted the bill a reconsideration vote that must occur before the end of business Tuesday, when the legislative session is scheduled to end, Leno said. He noted that the vote was expected to run along party lines and that his office and others were trying to persuade Democrats to get off the sidelines, or if they went against the bill, to change their votes.
“The banks are in full force to kill this bill, which is really intended to prevent avoidable foreclosures and letting lenders know that there are consequences to not doing their job properly.”