The measure, part of the Homeowner Bill of Rights package, has rankled bankers and mortgage servicers.
After six months of wrangling, California lawmakers put the finishing touches on what they hope will be compromise foreclosure-prevention legislation.
The measure is part of a larger Homeowner Bill of Rights package of bills sponsored by state Atty. Gen. Kamala D. Harris aimed at helping borrowers who are behind on mortgage payments avoid foreclosures. A draft of the bill was made public late Friday.
The bill would lock into California law many of the terms of a national foreclosure lawsuit settlement with five big banks.
California has been hit hard by a wave of foreclosures that started in the recession of 2007-09. Last year, 38 of the nation’s 100 most foreclosure-prone ZIP Codes were in the state.
“The California Homeowner Bill of Rights will help ensure that struggling California borrowers with the means and desire to stay in their homes will have real access to a process that will allow them to do so,” Harris said in a statement.
A two-house legislative conference committee is expected to approve the bill, SB 900, next week and send the package to the floors of both the state Assembly and Senate for final debates and votes.
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