California's Homeowners' Bill of Rights: The power of progressive leadership, by @DavidOAtkins

California's Homeowners' Bill of Rights: the power of progressive leadership



by David Atkins



Reading progressive blogs can be a depressing experience. There is so much bad news out there that it's easy to get discouraged.



That's why it's important for us to highlight bright spots like California's recently passed Homeowners' Bill of Rights:

State lawmakers passed a groundbreaking set of foreclosure relief bills Monday that supporters say will help hundreds of thousands of struggling Californians stay in their homes.



The legislation, the first of its kind in the nation, stops a practice by mortgage lenders that critics call one of the most egregious: "dual tracking," where a lender pursues foreclosure proceedings on a homeowner even though the homeowner is seeking a modification on the terms of the loan.



Backers hope that change, along with others included in the package supporters call the California Homeowner Bill of Rights, will spur similar protections for property owners in states across the country.



"I think we all should feel very good that we have done something that is the right thing to do," Attorney General Kamala Harris, the proposal's most prominent supporter, said shortly after the Assembly and Senate passed the legislation on an almost entirely party-line vote. One Republican and one independent joined Democrats in the Assembly, while only Democrats voted in favor in the Senate.Harris said 1 million Californians lost their homes to foreclosure between 2008 and 2011, and another 700,000 homeowners are in the foreclosure pipeline now.

The law also forces lending institutions to provide a single point of contact for the borrower, have the appropriate foreclosure documents on hand, and allow borrowers the right to sue lenders for major violations of the new law:

In addition to ending dual-tracking, the measures would require banks to provide all borrowers with a single point of contact when seeking to discuss their loan. Another element requires banks and other lenders to either approve or deny requests for a loan modification, along with requiring lenders to provide a clear explanation for their decision. Banks would also have to verify mortgage documents before a foreclosure and provide copies to borrowers upon request.



"This will prove to be one of the most important pieces of legislation this body will act on this year or any year," said Los Angeles Assemblyman Mike Feuer, one of several Democratic lawmakers who introduced the bills.



Feuer in particular championed a provision of the legislation that was attacked by some Republican lawmakers and sets the California law apart from the national settlement: Giving borrowers the right to sue lenders for "significant, material violations" of the new laws.



"If the rules of the game are violated, borrowers have the right to say no. They will not be kicked out of the home they have lived in for decades unless the rules are followed," he said.

California Democrats aren't perfect by any means. But this legislation is a landmark unparalleled in the nation, and it's largely due to the number of great progressive legislators in the statehouse. Just a few more and we can create a single-payer healthcare system here, too.



It does matter who gets elected. If it didn't, the Koch Brothers and Adelsons of the world wouldn't spend so much money trying to buy people's votes.





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via Hullabaloo http://digbysblog.blogspot.com/2012/07/californias-homeowners-bill-of-rights.html