Senate Approves SB 818, victory for HBOR but now on to the assembly

Oakland, California, May 10, 2018- SB 818 a bill that helps ensure Californians are treated fairly mortgage by loan servicers was approved by the senate. SB 818 restores original language from the Homeowners Bill of Rights (HBOR) that sunset at the end of 2017. HERA is a proud co-sponsor of this bill.

HBOR is widely described as the groundbreaking law that evens the playing field between homeowners and mortgage servicers. The foreclosure crisis may be over but that in no way means that these protections are not important. Homeowners, including surviving spouses and children are still at risk, and these protections ensure they will be treated fairly.

SB 818 requires mortgage servicers to stop foreclosure if a homeowner submits a complete application for a loan modification. It sets up the requirement of the servicer notifying the homeowner of having received the application, informing homeowners if they’ve submitted an incomplete application and providing a reasonable amount of time to appeal a denial.

SB 818 was approved by the Senate 23-12 and will now go before the Assembly.

(HERA in the News) From the California Dept. of Justice: Attorney General Becerra Calls on Education Secretary DeVos to Reject Toothless Student Borrower Defense Proposal

Monday, March 5, 2018 PRESS RELEASE

[CONTENT AND IMAGE IS FROM THE CA DEPT OF JUSTICE WEBSITE, PLEASE CONTACT THEM FOR MORE INFORMATION]

SACRAMENTO — California Attorney General Xavier Becerra, leading a coalition of 20 attorneys general, today submitted a letter to the U.S. Department of Education (Department) criticizing proposals that the Department offered during its recent rulemaking sessions to redraft regulations on borrower defense and financial responsibility. Borrower defense is the process by which students who have been defrauded by their schools can have their federal student loans discharged. For example, after the collapse of Corinthian Colleges in 2015, the California Attorney General assisted the Department in developing streamlined procedures to provide critical loan relief to tens of thousands of defrauded students around the country.

…

“We’re calling on the Secretary of Education to do her job and protect students, not fraudulent for-profit colleges,” said Attorney General Becerra. “So far, the Department has drafted borrower defense rules that do little to protect student borrowers. Instead, these rules would allow unscrupulous, for-profit sham colleges to rip off students and often the U.S. taxpayer with little worry about paying a legal penalty. As a Member of Congress, I supported reforms to the student lending system and defended regulations that protect student loan borrowers. As Attorney General, I will do everything in my power to ensure that all who seek a higher education can do so without having to worry about the motives of for-profit schools.”

Please visit State of CA DOJ Office of The AG for the full press release. Contact: (415) 703-5837, agpressoffice@doj.ca.gov